sábado, 24 de noviembre de 2012

Consumer Protection

Consumer protection is a situation in which federal and provincial governments try to protect consumers by making sure that the buying and selling of goods and services are fair.
The Office of Consumer Affair is who oversees consumer protection at the federal level.
-          It researches and analyses consumer products
-          It passes information to consumers
-          It also publishes its warnings and findings on its website.

Under provincial legislation consumers who sign a contract to make a purchase on credit must be told the credit charged in dollars and cents as well as the true rate of interest.

Federal laws
There are some very important federal laws:
Competition Act:
-          It governs advertising and business practices.
-          Anyone who violates this law may be prosecuted in criminal court.
-          Types of bad advertising:
o   False advertising: is making untrue statement about a product or service
o   Misleading advertising: distorts the truth about the goods being offered so that consumers are led to believe one thing through promises, but something else turns out to be true.
-          Examples:
o   Claiming service or repairs are needed when they are not.
o   Using a celebrity to endorse a product.
o   Claiming a product has a specific use when it does not.
o   Misrepresenting the price of a product.
-          It was passed to ensure consumer safety. It is concerned with the labelling, advertising and sale of hazardous products.
-          It prohibits the sale of very dangerous products.
-          It includes instructions for first aid.
Textile Labelling Act:
-          It is concerned with the need for more information of the synthetic and natural fibres.
-          Fibres have certain qualities and require certain types of care.
-          Consumers have to been able to check it on the labels.
Consumer Packaging and Labelling Act:
-          It establishes guidelines for the pack and labelling of all consumers products sold.
Food and Drug Act:
-          It regulates harmful products that could cause injury or illness if not used properly or if swallowed.
Canadian food inspection agency (CFIA):
-          It is Canada’s federal food-safety, animal-health, and plant protection enforcement agency.
-           It regulates and expects a wide variety of products


Door-to-door sales person
A door-to-door sales person must be licensed and consumer must ask to see the license.



Illegal pricing practices
Price fixing:
-          It is an agreement between businesses to charge the same price of similar products rather than competing on price.
Price discrimination:
-          It is the practice of selling goods more cheaply to one person or business than to another.
Predatory pricing:
-          It is the practise of charging very low prices in order to reduce competition. It can put companies out of business and after increase the price again.
Resale price maintenance:
-          A manufacturer sets the price at which wholesalers and retailers must sell their products for and they cannot avoid his price.
Bait and switch:
-          Business offers a product at a very low price to draw in consumers, then told the product is out and is offered another product in a higher price.

Cooling-off period
-          Consumers may cancel the contract but must do so in writing.
-          Ranges from two days to 10 days.