Consumer Protection
• A result of sketchy business practices and
fraud
• Protection offered by both federal and
provincial governments
• Ensures for a fair marketplace
Federal Legislation
• Office of Consumer Affairs
• Competition Act
– Federal law that governs advertising and business
practices
•
•
•
•
False and Misleading Ads
Illegal Pricing
Hazardous Products
Packaging and Labelling
False and Misleading Advertising
False and Misleading Advertising
• False Advertising
– Making untrue statements about a product or service
– Example – Advertising 100% leather, when really
synthetic
• Misleading Advertising
– Distorts the truth through wording or promises
– Stores must carry the same # of items that are on a
sale than they normally would
– 20% off all TVs when they have been marked up by
that same 20%
False Advertising
• Two recent False Advertising claims
• http://www.ftc.gov/opa/2011/09/reebok.shtm
• http://www.pcmag.com/article2/0,2817,2401478,00.asp
False Advertising
• Do you think companies have a responsibility
to advertise truthfully, or is the onus on
consumers to find the facts behind the
products they buy?
Illegal Pricing Practices
• Lessens Competition and give consumers less
Choice
– Price Fixing – agreement between businesses to
charge the same price
– Price Discrimination – Selling goods at different
prices to different people
– Predatory Pricing – Charging very low pricing,
driving away competition then raising your prices
– Resale Price Maintenance – manufacturer sets the
price for retailer to sell at
More reading!!
• http://www.guardian.co.uk/books/2012/sep/
07/ebook-price-fixing-judge-settlement
Illegal Pricing Practices
• Bait and Switch
– Place one product at a low price to draw in
consumers
– Consumers are told that
Product is sold out and are
Offered another higher
Priced item
Bait and Switch
Have I ever done that?
Hazardous Products
• Labelling, advertising and sale of hazardous
products
• Prohibits sale of very dangerous products
• Hazardous products must have labels
Consumer Packaging and Labelling
• Ingredients must be listed in descending order
of proportion
• Information in both French and English
• New amount in metric
• Name and address of the company
• Best before date for food and drink
Provincial Legislation
•
•
•
•
Must be told what you are charged on Credit
Must be told what interest you are being charged
Door-To Door salesmen must be licensed
Cooling off period of 2 day (Ontario) after signing a contract
– Can get out of a contract before 2 days is up
• Can’t enter into contracts when:
– Under 18
– Intoxicated
– Coerced into doing so
Consumer Protection
• Open today’s assignment entitled “Consumer
Protection”
• Use the slide show and notes to answer the
questions