CORE AREA 2 RESOURCE MANAGEMENT AND CONSUMER STUDIES CONSUMER PROTECTION
Consumer protection legislation Consumer rights are protected by legislation. Such legislation is necessary to safeguard the consumer from exploitation by retailers and manufacturers by prohibiting retailers and manufacturers from: • selling products of non-merchantable quality • providing misleading information
• refusing redress for valid complaints • providing substandard services.
Consumer protection legislation includes: • Sale of Goods and Supply of Services Act 1980 • Electronic Commerce Act 2000
Name one law that protects the rights of the consumer. (2) OL Sale of Goods and Supply of Services Act 1980
This act protects consumers when they purchase goods, as a legal contract is established between the consumer and the retailer. The act covers goods, services, illegal signs and guarantees. Goods
The Sale of Goods and Supply of Services Act states that any goods consumers buy from a retailer must:
• be of merchantable quality: e.g. fit for sale and in perfect condition
• be fit for purpose: e.g. a kettle must boil water
• be as described: correspond with the written description on the label or to the salesperson’s description, e.g. made with 100% wool
• correspond to sample: e.g. paint or flooring received should be direct replicas of the samples displayed to consumers in store.
Services
The Sale of Goods and Supply of Services Act states that all services should: • be supplied by a person with necessary skill: e.g. only a qualified hairdresser should cut hair • be supplied with care and diligence
• be completed with good-quality materials: e.g. an attic conversion should be constructed with quality timber.
Under the Sale of Goods and Supply of Services Act, the consumer is entitled to redress if the goods are faulty or a poor service was provided. This redress takes the form of a: • refund
• repair • replacement
The amount of compensation received depends on: • the duration of time between purchasing the good or availing of the service and making a claim, e.g. a consumer cannot return a faulty appliance after 15 years
• how serious the fault is, e.g. if a laptop keyboard loses a letter a consumer cannot expect a new laptop • how quickly the product was returned once the fault was noticed, e.g. whether or not the consumer continued to use the goods after they noticed a fault.
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