12 marks
State two areas of business behaviour in relation to marketing that are regulated.
Did this page help you?
Syllabus Edition
First teaching 2025
First exams 2027
Legal Controls (Cambridge (CIE) IGCSE Business): Exam Questions
Exam code: 0450, 0986 & 0264, 0774
1 hour14 questions
24 marks
Case Study
Sarah is launching a new energy drink business called 'PowerBoost'. She plans to market her products directly to teenagers and young adults through social media advertising and promotional events at schools and universities. Sarah has developed bold marketing materials featuring extreme sports imagery and claims that her drink 'increases energy levels by 300%' and 'guarantees improved athletic performance'. She is also considering celebrity endorsements from popular fitness influencers. Sarah knows that marketing regulations will be important for her business.
Extract from Sarah's marketing strategy
Target market | Teenagers and young adults (16-25) |
Main advertising claim | 'Increases energy levels by 300%' |
Promotional locations | Schools and universities |
Marketing budget | £15,000 |
Outline two reasons why legal controls on marketing will be important for Sarah's business.
Did this page help you?
32 marks
State two implications for a business that fails to comply with legal controls in marketing.
Did this page help you?
42 marks
State two examples of misleading promotion that businesses might use in their marketing.
Did this page help you?
54 marks
Case Study
Mark is launching a new children's toy business called 'SafePlay'. He plans to market his products directly to parents through online advertising and promotional events at toy shops and nurseries. Mark has developed colourful marketing materials featuring happy children playing and claims that his toys 'are 100% safe for all ages' and 'guarantee no choking hazards'. He is also considering celebrity endorsements from popular parenting bloggers. Mark knows that marketing regulations will be important for his business.
Extract from Mark's marketing strategy
Target market | Parents with children (25-45) |
Main advertising claim | '100% safe for all ages' |
Promotional locations | Toy shops and nurseries |
Marketing budget | USD 12,000 |
Outline two reasons why legal controls on marketing will be important for Mark's business.
Did this page help you?
62 marks
Define what is meant by legal controls in marketing.
Did this page help you?
74 marks
Case Study
Sally runs 'EcoClean', a small cleaning products company that has been operating for three years. Recently, she launched an aggressive marketing campaign claiming her products are 'completely chemical-free' and 'eliminate 99.9% of all bacteria instantly'. Sally has been advertising through social media influencers without disclosing these are paid partnerships. She also targets vulnerable elderly customers through door-to-door sales, using high-pressure tactics. Trading Standards has received several complaints about misleading claims and aggressive selling practices. Sally believes that since she is a small business, marketing regulations don't apply to her.
Extract from recent complaints to Trading Standards
Type of complaint | Misleading health claims about bacteria elimination |
|---|---|
Sales method | Aggressive door-to-door targeting elderly customers |
Advertising issue | Undisclosed paid influencer partnerships |
Business attitude | Believes regulations don't apply to small businesses |
Outline two consequences that EcoClean might face for failing to comply with legal controls on marketing.
Did this page help you?
16 marks
Case Study
Alana runs a small organic skincare company called 'Pure Glow' that manufactures and sells face creams online. Her business operates in the UK and must comply with various legal controls over marketing, including the Advertising Standards Authority (ASA) regulations and consumer protection laws. Alana ensures all her marketing claims about the skincare products are truthful and substantiated. She said: 'Following these legal requirements might seem costly and time-consuming, but I believe it brings real advantages to my business.'
Explain two advantages to Alana's business of complying with legal controls over marketing.
Did this page help you?
26 marks
Do you think businesses always suffer if they fail to comply with legal controls on marketing? Justify your answer.
Did this page help you?
38 marks
Explain two advantages and two disadvantages to a business of complying with legal controls over marketing.
Did this page help you?
46 marks
Case Study
Marcus operates a small electronics company called 'TechSafe Solutions' that designs and manufactures smartphone accessories in the UK. His business must comply with various legal controls to ensure products are not faulty, including product safety regulations and consumer protection laws. Marcus implements rigorous quality control processes and testing procedures before any product reaches customers. He stated: 'Meeting these legal requirements for product safety requires significant investment in testing and quality systems, but I'm convinced it delivers substantial benefits to my business.'
Explain two advantages to Marcus's business of complying with legal controls to ensure products are not faulty.
Did this page help you?
56 marks
Case Study
Sam runs 'SafeHome Appliances', a medium-sized business that manufactures kitchen appliances in Manchester. Recently, the company has received several customer complaints about faulty products, including reports of overheating toasters and malfunctioning blenders that have caused minor injuries. These incidents have damaged the company's reputation and led to negative online reviews. Sam recognises that preventing faulty goods from leaving the business is crucial for maintaining customer trust and avoiding further complaints. He stated: 'We must implement robust systems to ensure our kitchen appliances are thoroughly checked before they reach our customers.'
Explain two ways SafeHome Appliances could ensure faulty goods do not reach customers.
Did this page help you?
112 marks
Consider the advantages and disadvantages of the following two ways to ensure products comply with legal controls on marketing when SSE expands into new international markets.
Compliance checks
Staff training programmes
Which way should SSE prioritise to ensure compliance with legal controls on marketing? Justify your answer.
Did this page help you?
212 marks
Consider how the following two ways could help HealthyMunch respond to accusations it has made false claims about its products in promotional materials.
Implementing transparent communication strategies
Strengthening product quality assurance processes
Which approach is likely to be most effective in restoring customer trust? Justify your answer.
Refer to the following insert (opens in a new tab)when answering the question
Did this page help you?