The Impact of Legislation on Marketing (Cambridge (CIE) IGCSE Business): Revision Note
Exam code: 0450 & 0986
Legal controls and marketing strategy
Legal controls are laws designed to protect consumers from unfair or unsafe business practices
Legal controls force businesses to adopt ethical, responsible, and consumer-friendly marketing strategies. Non-compliance can lead to:
Financial penalties
Bans on advertising
Lawsuits
Damage to brand image and customer trust
As a result, marketing teams must work closely with legal advisors to ensure that every element of a campaign respects current laws and protects consumer interests
Key areas affected
1. Misleading promotion
Businesses must not make false or exaggerated claims about products in advertisements, packaging, or promotional campaigns
Examples of illegal promotions:
Advertising a discount that is not genuine (e.g. claiming "50% off this week only" when the product was never sold at the higher price)
Suggesting a product has benefits it does not actually deliver
Impact: Marketing strategies must be carefully reviewed to ensure honesty, accuracy, and transparency in all communications
2. Faulty and dangerous goods
Products sold to customers must be safe and fit for purpose
It is illegal to sell goods that could cause harm or injury due to poor design, manufacturing defects, or a lack of clear safety instructions
Impact: Businesses need to:
Implement quality control checks
Provide clear instructions and safety warnings
Avoid marketing products in a way that encourages unsafe use
Examples of consumer protection legislation
The Australian Consumer Law protects consumers from unfair and unsafe business practices when buying goods and services, including
Unfair trading
Consumer guarantees
Door-to-door sales and direct marketing
Product safety
In the UK, the Consumer Rights Act (2015) protects consumers from unfair and dishonest business practices
It covers the product or service, returns, repairs, replacement and delivery
Examiner Tips and Tricks
You will not be required to show knowledge of specific laws
Make sure you can explain why governments pass laws to protect consumers and what the laws mean for businesses when selling their goods or services. Consider whether changes or introductions of law will increase costs, force changes in production methods or alter marketing mix elements such as packaging or sales promotions
You've read 1 of your 5 free revision notes this week
Unlock more, it's free!
Join the 100,000+ Students that ❤️ Save My Exams
the (exam) results speak for themselves:
Did this page help you?
