Selling in Uk Principles and Aspects - Essay Example

Marketing Q.1) Outline the key aspects of the following legislation: Sales of Goods Act 2002 and Direct Selling in the UK, and the Difference Between the Protection Offered buying Goods Online and in The High Street. 1. Sales of Goods Act 2002 in the UK The Sale and Supply of Goods to Consumers Regulations Act came into existence on 31 March, 2003. This Regulation was adopted as a result of the Consumer Guarantee Directive, a part of legislation in Europe, the intention of which is to offer some protection to the consumers of the European Union. It offers supplementary remedies to the UK consumers. It increases the rights of the UK consumers, and provides legal right to certain remedies on a goodwill basis. The Regulations ensure that a consumer has a minimum right of redress when buying goods within the European Union (Sale and Supply of Goods to Consumers Regulations 2002 2008). The key Aspects of Sales of Goods Act 2002: The Regulations state that any public statements of producers, importers, or retailers regarding specific features of the goods, mainly in advertising or on labelling, have to be correct, and form a part of the retailer’s agreement with consumer. Goods can’t constantly be expected to work error-free. They may fail in their normal use. Therefore, consumers cannot suppose to hold the retailer responsible for the loss. Durability is a complicated concept, but it is something that should be considered while assessing whether the goods match with the contract. When buyers consider durability, they should bear in mind that everything has a finite life. If the product installation is intended to be done by the consumer and if incorrect installation happens due to inadequacy of instructions in installation this shall be treated as lack of conformity. In consumer sales, risk doesn’t follow property, instead it follows delivery. So, when goods are passed to a carrier, it is not considered as delivery to customer 2. Direct Selling in the UK Whatever might be the channel to market, in UK commerce, purchasers have the right to return defective goods for full refund. Besides, if sale is done via direct selling channel, the consumer has cancellation right, irrespective of the goods being defective or not; these rights occur by the virtue of laws relating to relative channel. The UK consumer in direct selling industry has improved rights, if the seller is a part of Direct Selling Association. UK law concerned with direct selling also provides the direct retailer consumer protection rights to terminate the agreement at the start, or to stop it at any time on notice. Consumers should get clear information about of the aspects involves in purchase before they decided to purchase anything. These include the seller’s name, the price of the product extra delivery charges (if any) and VAT. To cancel the order within seven days (Green Net CSIR Toolkit Briefings 1970) following the receipt of goods and to get back the money even if the consumer has to compensate for the return of goods. If the sellers realize later on that they can’t deliver within the time, they must inform the customers earlier to cancel the order or to get refund. To ensure safety from fraudulent activities when customers pay by credit or debit card which leads to breach payment for no fault of the customer, the card provider should refund all the money to the customers’ account. Unlike in High Street purchase the customer can complain to the Advertising Standards Authority if anything is seen fraud in the site. The Distance Selling Regulations guard the customers from the deceitful use of customer’s payment card in purchase over internet. The customer’s account should be re-credited with full amount, if any debit is made by the fraudster. Q. 2) The role of Trading Standards in enforcing legislation in the UK The Trading Standards Institute in UK is a professional body, intended for trading with standard professionals working in public and private sectors. Trading Standards Services implement legislations in safeguarding the economic interests, social interests, and health and safety of the society. These roles are crucially important in helping financial growth in UK, chiefly as the UK authorities attempt to shift towards economic recovery. The daily enforcement of safety conditions in the Consumer Protection Act is the responsibility of Trading Standards services of the local government authorities. The aim of the Trading Standards team is to ensure fair and safe living for customers, and conducive trading environment for consumers and businesses (The Role of Trading Standards n.d.). In UK, responsibility for implementing legislation of consumer protection is transferred to the local government. Its aim is to deliver a competitive structure for the development of successful businesses and reasonable deal for the consumers; to facilitate UK consumers enjoy better service, safe products at competitive prices, as UK trades and commence attempts to move towards the economic recovery. The Trade Marks Act and Copyright, and Designs and Patents Act 1988 (CDPA) generate statutory duties on local authorities to check the illegal provisions of those Acts. Additionally, commercial dealing in intellectual property (IP) violating goods, can also be a breach of consumer protection right according to the Unfair Trading Regulations 2008, as it can cause significant consumer injury. Fake, unauthorized, or illegally copied products are termed as wrongly described products. They will be hazardous and dangerous. Patents Trading standards services may not have any enforcement responsibilities regarding violation of patents, because, at present there are no illegal sanctions. Copyright There is a necessity to set a reasonable balance between ‘fair use’ and ‘violation’. There isan arguments that any form of relaxation of the present copyright protection system could transform it into a counterfeiters’ license by developing a veneer of authenticity for illegal activities. The present framework does not bring the best outcomes to act as a restraint to copyright theft. There are no legal duties or enforcement power for the trading standard authorities regarding the illegal offences contained in CDPA. The implementation or enforcement of such powers may be a precise message of support for the owners of rights owners. Enforcement of rights The Call For Evidence may not distinguish civil implementation by right-holders and illegal enforcement by the trading standards and state. This is a wide disparity and the key message conveys that there is a line that should not be crossed; otherwise the state will interfere. IP and competition It is quite reasonable to retain the present framework of illegal sanctions about IP theft since these sanctions act as a restraint to prevent distribution and sale of fake goods. Such activities destabilize fair competition in the market, and keep public health at risk. SME Access to IP Services Trading standard services work in the Department for Business, Innovation and Skills (BIS) supported by Home Authority principles and Primary Authority principles. These principles offer the framework within which small and medium enterprises can approach local trading standards service for their advice on the IP. Q.3) Outline the key differences between UK consumer legislation and industry codes of practice intended to protect the consumer. Discuss the main advantages and disadvantages for customers and business of having codes of practice. Give one example of a code of practice and outline who regulates it. Local Authority Trading Standards Services (LATSS) has enforced consumer protection laws through illegal prosecutions The Government has taken the chance to update and combine consumer protection laws in UK. The regulations modified the Consumer Protection Act and the Trades Description Act, terminated and replaced Control of Misleading Advertisements Regulations. In the UK, several Acts passed by the Parliament lay down the responsibilities of the seller to the buyer (Consumer Protection Legislation n.d.). UK also has to execute the laws approved by the EU. The UK consumer protection Act includes: Sale of Goods Act 1979 Sale and Supply of Goods Act 1994 Supply of Goods and Services Act 1982 Supply of Goods (Implied Terms) Act 1973 Consumer Protection Act 1987 Data Protection Act 1984 Fair Trading The idea of the law of consumer protection is threefold: 1) To make sure that sellers of goods and services realize accurately the legal requirements of customer care that they should offer. 2) To set up measures of redress for the customers 3) To set up legal practices for dealing with sellers who violate the legal requirements. The significant Acts of Parliament enclose all the information required by sellers who need to identify their lawful responsibilities to their customers. It would be no justification for the sellers to claim that they did not make out what the law needs. As far as clients are concerned, the legislation also contain information concerning the actions they can adopt when sellers do not succeed in offering satisfactory customer care, by giving deceptive or dishonest information, not dealing with complaints or enquires, or by failing to execute their contractual commitment. As far as the retailers are concerned, the after effects of nonconformity with consumer protection rules are noteworthy. If a business is found to be guilty before courts, it can be charged or, in some cases especially where measures of safety, hygiene, food and drink quality are concerned, the concerned business group should be ready to perform expensive enhancements, or even be prepared to shut down. The Motor Industry Code of Practice for Service and Repair is a voluntary Code of practice (The Motor Industry Code of Practice for Service and Repairs 2010) developed by motor industry for garages and consumer benefits. Motor Codes were established by the motor industry to perform as a self-regulatory body for automotive segments and it is a wholly-owned subsidiary of the Society of Motor Manufacturers and Traders (SMMT) (About Motor Codes 2012). One of the three operating codes of practice of motor codes is the Service and Repair Code. The Service and Repair Code was developed as a way of identifying quality within the motor industry and to promote mental peace for the motorists.  It helps the motorists to recognize responsible garages, propose a structured guidance on complaints, and practice and endorse excellent customer service. The launch of the code marked a growth chiefly in consumer safety in automotive sector. The code commits garages to honest and fair service, transparent and open pricing, and on completing the work as agreed. 4) “Your consumer rights are not affected”. Explain why retailers may publish this type of statement. Illustrate with examples to prove how retailers go beyond the requirements of the Sales of Goods Act 2002, when they return goods and suggest how the impact of in-store ‘good-will’ policies may be problematic. Consumers have an important role in an economy, and in the economic decisions of a country. The success and failure of a product and it services closely depend on its customers. Customers are treated as the kings of the market. So the manufacturer and retailer should safeguard the interest of the consumers, and meet their needs and wants. These days, consumers face many problems associated with competition in the market ,low quality product and services, misleading of advertisement etc .So consumer protection is an important issue for the manufacturers and retailers. They should give much importance to the expectations of the consumers while introducing new products and services. Consumers have different rights concerning with their purchase of goods and services, and they are right to safety, right to seek redressal, right to information, right to choose, right to consumer education, and right to be heard . Safety means protection from the product or services that are hazardous to health and life. The right to choose indicates that the consumer has the right to select the desired product from the available products in the market. Right to information means protection against misleading advertisement, labelling, information, and other practices. If the retailer fails to meet these rights or break these rights, it may adversely affect the business as a whole. To survive in the market, retailers and producers must give great importance to consumer rights. Kennedy recognizes that consumers from the largest economic group in the country’s economy, affecting almost every public or private economic decision. But it is also the only important group which is not effectively organized. Their views are also not heard (Consumer Rights and its Expansion Rights and Responsibilities 1999). While purchasing goods from market through online or by mail order, the consumer may face several problems. Sale of Goods Act helps the consumers in giving information about the rights the customers have, and how the customers can solve the situation. When the consumer buys a product, there is a contract between the seller and the consumer. While returning the goods that are already sold, it is obvious that the retailer has gone beyond the sale of goods act, because contains all the information needs by the seller to know the legal responsibilities towards the customers. The Sale of Goods Act (SOGA) is the main law that determines how goods should be sold and what rights consumers have in relation to faulty goods (OFT Publishes Sale of Goods Act Guidance for Retailers 2010). Customers have the right to get replaced faulty products from the retailer. So while returning the goods, the retailer should meet the customers effectively and understand the reason why the customers return the goods. Under the sale of goods act the retailer has to replace or rapier the returned product. The return of sold goods affects the good will of the company. Good will is an intangible asset of the company, and intellectual properties like patent, trade mark, and copy right etc are some of the examples of good will. Good will increases the reputation of the firm and its brand image in the minds of the general public. If the manufacture or retailer does not consider the rights, needs, and interest of the consumers, the company loses its good will. 5) Outline the role of a consumer organisation in the development of legislation in the UK and Europe Consumers are the kings and queens in the market, even though they face many challenges concerned with the product and services available in the market. So Consumers need protection against mal practices which include sale of substandard goods and unsatisfactory services. It leads to the introduction of consumer organization. A consumer organization is an organization meant for helping consumers by giving support, information and even protecting the right of the consumers. It provides assistance to the consumers in the form of specific guidance, if they have any dispute with the product and services. Consumer organizations also play an important role in educating consumers about their rights, responsibilities, and in giving information regarding the services available to the consumers. Consumer organization provides advice on the whole range of issues including social security, housing, consumer matters, debt problems etc. The role of consumer organization is to support the development and enforcement of a proper system of authority to promote and protect the consumer interest. Consumer organisations provide support and information to consumers. Some assist consumers by producing guides, and educating consumers about their rights, campaigning for a fair deal and/or advising consumers on what to do, if they have a complaint whilst others are involved in enforcing consumer Law (Consumer Organisations, n.d.). BEUC Consumer Organization of Europe The consumer organisation in United Kingdom is known as BEUC, it is a French name (Bureau Européen des Unions de Consommateurs). This federation is represented by 40 independent national consumer organisations from different European countries. The main task of BEUC is to protect the interests of European consumers, develop policies and regulations and to promote the interests of all European consumers. BEUC has been pursuing for more than 49 years, for promoting consumers rights. These rights include: A clean environment Safety Education Satisfaction of basic needs Representation Redress Education Information And choice BEUC ensures sustainable consumer policy to all member countries. It acts for reducing negative social and economic impacts. BEUC supports the empowerment of consumers through competitive markets, complemented by health, or that of and safety safeguards. Only safe products and services, which do not put at risk our health, future generations, or the environment, should be available in the EU market. Where consumers cannot be empowered, regulatory measures must protect their economic and legal interests (Consumers on the European Stage, n.d.). Consumer organizations of various nations are closely related with the legislation of their respective countries. Legislation is the form of law, and it has an important role in the society by giving individuals’ right to equality, and protection from unfair discrimination. The European Union has successfully created an internal market, with free circulation of goods and services for the benefit of consumers, among others. The legislative measures and other measures are intended to promote the interests, health and safety of consumers in the internal market, to ensure that consumer concerns are taken properly into account in all EU policies, and complement national consumer policy in the Member States (Consumer Safety Reference List Sale and Supply of Goods to Consumers Regulations 2002 (2008). Clarks Legal, The Diverse Law Firm. [Online] Available at [Accessed on 05 May 2012] Buying Over the Internet (2002). Advice Guide Advice that makes a Difference. [Online] Available at Green Net CSIR Toolkit Briefings (1970). UK Internet Rights. [Online] Available at [Accessed on 02 May 2012] The Role of Trading Standards (n.d.). Bracknell Forest Council. [Online] Available at [Accessed on 02 May 2012] Consumer Protection Legislation (n.d.). [Online] Available at [Accessed on 02 May 2012] [Accessed on 02 May 2012] The Motor Industry Code of Practice for Service and Repairs (2010). Bartley. [Online] Available at [Accessed on 05 May 2012] About Motor Codes (2012). What is Motor Codes? [Online] Available at Consumer Rights and its Expansion Rights and Responsibilities (1999). CUTS Centre for Consumer Action Research and Training. [Online] Available at [Accessed on 02 May 2012] OFT Publishes Sale of Goods Act Guidance for Retailers (2010). Out-Law Legal News and Guidance from Pinsent Masons. [Online] Available at [Accessed on 02 May 2012] Consumer Organisations (n.d.). The Consumer Council. [Online] Available at [Accessed on 02 May 2012] Consumers on the European Stage (n.d.). The European Consumers’ Organization. [Online] Available at [Accessed on 02 May 2012] Consumer Safety (n.d.). European Commission. [Online] Available at [Accessed on 02 May 2012] Read More