The Office of Consumer Affair is who
oversees consumer protection at the federal level.
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It researches and analyses
consumer products
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It passes information to
consumers
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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.
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Federal laws
There are some very important federal
laws:
Competition
Act:
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It governs advertising and
business practices.
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Anyone who violates this law
may be prosecuted in criminal court.
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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.
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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.
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It was passed to ensure
consumer safety. It is concerned with the labelling, advertising and sale of
hazardous products.
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It prohibits the sale of very
dangerous products.
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It includes instructions for
first aid.
Textile
Labelling Act:
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It is concerned with the need
for more information of the synthetic and natural fibres.
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Fibres have certain qualities
and require certain types of care.
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Consumers have to been able to
check it on the labels.
Consumer
Packaging and Labelling Act:
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It establishes guidelines for
the pack and labelling of all consumers products sold.
Food
and Drug Act:
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It regulates harmful products
that could cause injury or illness if not used properly or if swallowed.
Canadian
food inspection agency (CFIA):
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It is Canada’s federal
food-safety, animal-health, and plant protection enforcement agency.
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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.
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Illegal pricing
practices
Price
fixing:
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It is an agreement between
businesses to charge the same price of similar products rather than competing
on price.
Price
discrimination:
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It is the practice of selling
goods more cheaply to one person or business than to another.
Predatory
pricing:
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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:
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A manufacturer sets the price
at which wholesalers and retailers must sell their products for and they cannot
avoid his price.
Bait
and switch:
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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
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Consumers may cancel the
contract but must do so in writing.
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Ranges from two days to 10
days.
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