Exam code: 0450, 0986 & 0264, 0774
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Define legal controls.
Legal controls are laws designed to protect consumers from unfair or unsafe business practices.
Define misleading promotion.
Misleading promotion occurs when a business makes false or exaggerated claims about its products in advertisements, packaging, or promotional campaigns.
Define quality control.
Quality control refers to the processes businesses use to ensure products are safe and fit for purpose, often through checks and inspections.
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Define legal controls.
Legal controls are laws designed to protect consumers from unfair or unsafe business practices.
Define misleading promotion.
Misleading promotion occurs when a business makes false or exaggerated claims about its products in advertisements, packaging, or promotional campaigns.
Define quality control.
Quality control refers to the processes businesses use to ensure products are safe and fit for purpose, often through checks and inspections.
What is the main purpose of legal controls in marketing?
The main purpose of legal controls in marketing is to protect consumers from unfair or unsafe business practices.
Give an example of misleading promotion.
An example of misleading promotion is advertising a discount that is not genuine, such as claiming “50% off this week only” when the product was never sold at a higher price.
Why must products sold to customers be safe and fit for purpose?
Products must be safe and fit for purpose because it is illegal to sell goods that could cause harm or injury due to poor design, defects, or lack of safety instructions.
True or False?
It is legal for a business to claim a product is waterproof when it provides no protection from the rain.
False.
Making false claims about a product, such as saying it is waterproof when it is not, is illegal and considered misleading promotion.
What are two possible consequences for a business that does not comply with legal controls?
Two possible consequences for not complying with legal controls are financial penalties and damage to brand image and customer trust.