| Business Matters - Consumer legislation |
Consumer Legislation
There is a wide range of legislation - laws - that controls the supply of goods and services and protects the consumers' rights. The consumer is a person who buys goods or services for direct use or ownership, rather than for resale or use in manufacturing.
Consumer Credit Act 1974 This act provides certain safeguards to consumers who purchase goods and services on credit. It requires most businesses that offer goods and services on credit, to consumers, to be licensed by the Office of Fair Trading (OFT). This act has been updated by the Consumer Credit Act 2006 which establishes a fairer, clearer and more competitive market for consumer credit. It updates consumer credit legislation of 1974 making it more relevant to today's consumers enabling them to challenge unfair relationships with creditors. Consumer Protection Act 1987 Prohibits the supply of goods that are unsafe to use, all goods must conform to general safety guidelines. It imposes liability for defective products primarily on the producer of the products not the supplier. It also prohibits misleading price indications. Consumer Safety Act 1978 This act lays down legal safety standards to minimise the risk to the consumer from potentially harmful or dangerous products. Cosmetic Products (Safety) Regulations 199
The labelling may appear on the product, the packaging or on an advice sheet included with the product. A cosmetic product may be defined as; any substance that is used on the skin, teeth, hair, nails, lips or external genital organs, with the intention to; cleanse, perfume, change the appearance of, protect, keep in good condition or to correct body odours. All products must be labelled with the following:
The Sale of Goods Act 1979 (amended by The Sale and Supply of Goods Act 1994) This act states that goods must be of satisfactory quality, free from fault, of a reasonable finish, durable and safe. The goods must be fit for the purpose they are sold and correspond with their description. The Supply of Goods and Services Act 1982 This act improves the rights of the client in relation to poor service. Any person providing a service must act with reasonable care, work within a reasonable time and charge a reasonable price. The Trades Description Act 1968 and 1972 This act prevents the seller of goods and services from making false claims, misleading the consumer or providing inaccurate descriptions by word of mouth, in a written contract, advertisement or labelling. The Prices Act 1974 According to this act, prices must be displayed in such a manner that it does not give a false impression to the consumer, about the goods and services that are on offer. The Resale Prices Act 1976 This act prevents manufacturers from imposing a specified retail price for goods. Many companies do however have a recommended retail price which they suggest their customers use. The Consumer Protection Distance Selling Regulations 2000 If you sell goods or services to a consumer by; mail order, the Internet, digital television, phone or fax you must comply with these regulations. A distance contract is one where there has been no face to face contact between the consumer and the representative of a business. The key features are:
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These regulations require that cosmetics and toiletries should be clearly labelled providing detailed information for the consumer relating to formulations and their ingredients.