Legislation: Consumer law

The idea

Consumer law protects buyers of goods and services. It gives customers rights when products are faulty, misdescribed or delivered late, and it imposes duties on businesses. For example, goods must be of satisfactory quality, fit for purpose and as described. If a business sells a faulty kettle, the customer can ask for a repair, replacement or refund. Businesses must therefore check stock, train staff and handle complaints fairly. Failure can lead to refunds, fines, bad publicity and lost repeat custom.

What earns the marks

• Consumer law gives customers legal rights when goods or services are faulty, not as described or not fit for purpose.
• Businesses must ensure products meet quality standards and that descriptions, prices and delivery promises are accurate.
• Complying can raise costs, for example refunds, replacements, staff training and better quality control.
• Failure can lead to legal penalties, compensation claims, damaged reputation and reduced customer loyalty.

Common mistakes and how to put them right

• Thinking consumer law only applies to expensive items.

  Put it right: It applies to all consumer purchases, so correction is to apply it to low-value goods too.

• Confusing consumer law with employment law.

  Put it right: Is to link consumer law to customers and product quality, not to wages or contracts.

• Assuming all faulty goods automatically lead to a full refund.

  Put it right: Is to explain that repair or replacement may be offered first, depending on the situation.

Exam tips

• Use a named product or service to show how consumer law works in practice.
• When assessing impact, link each effect to costs, training, recruitment or consequences of failure.
• Use business terms such as reputation, customer loyalty, compliance and compensation accurately.