Consumer Protection Year Group: 11 – GCSE Business Studies Topic Reference: Consumer Protection Time/Length: Approximately 2 hours, depending on approaches used Aims: To introduce and develop a knowledge and understanding of the concept of consumer protection in relation to the product element of the marketing mix and the organisations involved in supporting and enforcing consumer protection legislation. Learning outcomes: By the end of this series of lessons students should be able to: Identify and describe the main laws relating to the product element of the marketing mix Apply the theory of these laws to practical examples Identify and describe the main organisations involved in consumer protection General Consumer Council for Northern Ireland – Post Primary Lesson summary/organisation/activities: Teaching Strategy Whole class teaching (WCT)/ Groupwork or paired work Resource Flash cards 1 – 6 or Worksheet 1 Explanation Discussion – based on the various issues which may arise when students are shopping. This can take the form of wct, groupwork or paired work. Skill Literacy – Talking/Listening (T/L) Working with others WCT White/chalkboard/fli p chart/overhead transparencies Findings from group or paired work should be presented to the whole class. Literacy – T/L Groupwork Worksheets 2 & 3 Textbooks, consumer information leaflets, website eg www.consumerline. org Working with others Literacy – T/L WCT Answer sheets 2, 3 &4 Flash cards 1 – 6 Answer sheet 1 WCT or Internet Activity Worksheets 4 & 5 Homework/Classwork exercise Worksheet 6 In groups students should investigate the laws highlighted on the relevant worksheets, using the suggested resources. Group work can be divided into one group investigating one of the four laws and presenting their findings to the whole class. Summary of the laws with supporting teacher notes. Review answers to flash cards from first lesson based on information collected on the laws. This can be completed through wct or by investigation using the Internet if this is available. Website addresses shown on Worksheets 4 & 5 Report on consumer protection for local paper. This can be hand written or word processed. General Consumer Council for Northern Ireland – Post Primary Literacy – Reading/Writing (R/W) Literacy – T/L Literacy – R/W ICT Literacy – R/W ICT Resources 1. Flash cards 1 – 6 or worksheet 1 2. Worksheets 2 & 3 – Legislation 3. Worksheets 4 & 5 - Organisations involved with consumer protection 4. Worksheet 6 – Homework/Classwork task 5. Answer sheet 1 6. Answer sheets 2 – 4 7. Answer sheets 5 - 8 General Consumer Council for Northern Ireland – Post Primary CONSUMER PROTECTION FLASH CARDS CONSIDER THE FOLLOWING CONSUMER ISSUES. DISCUSS AND RECOMMEND WHAT PETE’S CONSUMER RIGHTS ARE IN EACH SITUATION. General Consumer Council for Northern Ireland – Post Primary I bought a shirt but when I arrived home I changed my mind. I took it back to the shop the next day but the staff would not give me a refund. Can they do this? General Consumer Council for Northern Ireland – Post Primary I bought new shoes recently but the heel of one shoe broke the second time I wore them. The shop is offering to repair them. Do I have to accept this? General Consumer Council for Northern Ireland – Post Primary I bought a CD player after seeing a private ad in my local newspaper. When I got it home I discovered that it wasn’t working. What are my rights? General Consumer Council for Northern Ireland – Post Primary I got a television set for my birthday but it doesn’t work properly. The shop manager told me to send it back to the manufacturer, as the fault had nothing to do with the shop. Is this correct? General Consumer Council for Northern Ireland – Post Primary I bought a pair of jeans for £59.95 but discovered that a shop down the street was selling them for £49.95. What can I do? General Consumer Council for Northern Ireland – Post Primary My Mum washed a pair of trousers that were labelled hand wash only in the washing machine, and they shrunk. What can I do? General Consumer Council for Northern Ireland – Post Primary LEGAL CONSTRAINTS ON PRODUCTS The government has written a number of pieces of legislation (laws) to protect consumers when buying products. 10 MINUTES Pete has been shopping and needs your advice on the following problems. In pairs discuss the following consumer issues saying what you think Pete’s consumer rights would be in each situation. 1. I bought a shirt but when I arrived home I changed my mind. I took it back to the shop the next day but the staff would not give me a refund. Can they do this? 2. I bought new shoes recently but the heel of one shoe broke the second time I wore them. The shop is offering to repair them. Do I have to accept this? 3. I bought a CD player after seeing a private ad in my local newspaper. When I got it home I discovered that it wasn’t working. What are my rights? 4. I got a television set for my birthday but it doesn’t work properly. The shop manager told me to send it back to the manufacturer, as the fault had nothing to do with the shop. Is this correct? 5. I got a television set for my birthday but it doesn’t work properly. The shop manager told me to send it back to the manufacturer, as the fault had nothing to do with the shop. Is this correct? 6. I got a television set for my birthday but it doesn’t work properly. The shop manager told me to send it back to the manufacturer, as the fault had nothing to do with the shop. Is this correct? General Consumer Council for Northern Ireland – Post Primary LEGISLATION There are four main laws; these are known as Acts or Orders, which offer consumers protection when buying products in Northern Ireland. In groups, using the suggested resources, investigate the four main pieces of legislation relating to products. The four laws are named below, use the spaces provided to make notes of your findings about each law. You will be required to present your findings to the whole class. ACT What it says Sale and Supply of Goods and Services Act 1994 Consumer Protection Act 1987 Food Safety (Northern Ireland) Order 1991 Weights and Measures (Northern Ireland) Order 1981 Suggested Resources GCSE Textbooks – www.consumerline.org OTHER CONSTRAINTS ON PRODUCTS In addition to legislation, there are a number of organisations which have been set up to protect the interests of consumers. Organisation What they do The Consumers’ Association www.which.net/campaigns/contents.html The British Standards Institution (BSI) www.bsi.org.uk Environmental Health Officers www.ballymena.gov.uk Trading Standards Officers www.tssni.gov.uk The General Consumer Council www.gccni.org.uk General Consumer Council for Northern Ireland – Post Primary You are employed by the Citizens Advice Bureau. You have been asked to prepare a report, for an article in your local newspaper, giving information on the area of consumer protection. The report can be written or word processed. Your report should be structured under the following headings: 1. Relevant Legislation [4] 2. Organisations involved in consumer protection [4] 3. What people should do if they have a complaint [6] TOTAL MARKS General Consumer Council for Northern Ireland – Post Primary [14] LEGAL CONSTRAINTS ON PRODUCTS 1. Yes they can. The shop is under no legal obligation to give you your money back just because you changed your mind about something. Many shops would give you a refund as part of their customer service policy – to encourage you to remain a loyal customer. 2. No, under the Sale and Supply of Goods and Services Act 1994, you are entitled to a refund, replacement or repair - it is up to you not the shop which you choose. 3. In this situation your rights are less straightforward, because this was a private sale it is your word against the seller. Caveat Emptor is a Latin phrase used to describe this type of sale it means ‘let the buyer beware’. 4. No this is incorrect you made a contract with the shop, not the manufacturer. It is the shops responsibility to sort the problem out with you and the manufacturer, not yours. The Sale and Supply of Goods and Services Act 1994 apply in this situation. 5. Nothing, the shop can charge the price they wish and if you agree to pay that price then you are not entitled to your money back just because you saw the item cheaper in another shop. However, in order to retain your loyalty they may give refund you the difference in price. 6. Nothing, your Mum did not follow the washing instructions. The fault is not with the shop. Legally they do not have to give you a refund or replacement. Again they may do so as a goodwill gesture. General Consumer Council for Northern Ireland – Post Primary LEGISLATION Sale and Supply of Goods and Services Act 1994 This act states that goods must be: Of merchantable quality – they must work properly and be of a satisfactory quality. as described fit for the purpose If goods sold are not any of the above, then the consumer is entitled to a refund, replacement or repair – this is decided by the consumer. If the consumer uses the goods for something which they were not designed, then the shop does not have to accept liability for the fault. The Sale and Supply of Goods Act does not cover goods which have been sold privately. Consumer Protection Act 1987 This act covers product safety. A product which is unsafe is known as defective. If a person is injured by a defective product they are entitled to sue the manufacturer for damages. This act is concerned with manufacturers of goods and importers of foreign goods. Certain goods are exempt, such as tobacco. If the consumer uses the goods for something which they were not designed and are injured as a consequence then the manufacturer does not have to accept liability. Food Safety (Northern Ireland) Order 1991 This order makes it a criminal offence for caterers to sell food that: is unfit for human consumption is contaminated Is falsely or misleadingly presented. All premises used by food businesses must be registered with their local district council. Staff involved in the handling of food must have received hygiene training. Weights and Measures (Northern Ireland) Order 1981 The Weights and Measures Order aims to ensure: That consumers do not receive short weight or measure That scales or other equipment of measurement are accurate. General Consumer Council for Northern Ireland – Post Primary OTHER CONSTRAINTS ON PRODUCTS In addition to legislation, there are a number of organisations which have been set up to protect the interests of consumers. Organisation What they do The Consumers’ Association The Consumers’ Association is a pressure group funded by subscriptions from members it is an independent organisation, funded by subscriptions from members. Its main aim is to improve the standards of goods and services available. www.which.net/campaigns/contents.html The Consumer’s Association achieves this aim in a number of ways: It gives advice and information to consumers on products and services. It tests products and reports the findings in Which? Magazine. It publicises findings about bad practice in firms. The British Standards Institution (BSI) www.bsi.org.uk The BSI is an independent organisation which carries out tests on products to make sure they meet BSI standard for: Reliability Quality Safety The Kitemark is awarded to a product which passes its tests. Manufacturers are keen to have the Kitemark on their products because it is a sign of quality and consumers are more likely to buy. General Consumer Council for Northern Ireland – Post Primary Environmental Health Officers www.ballymena.gov.uk Environmental health Departments are part of local district councils. They are involved in a number of areas: Food safety – ensuring that food produced, at all stages in the chain of production are of a certain standard and fit for human consumption. If EHOs find businesses are not up to standard they have the power to: serve an improvement notice prosecute close the businesses EHOs are responsible for enforcing the Health and Safety at Work Act EHOs inspect premises, investigate complaints and give advice. In addition to the two areas outlined above Environmental Health also monitors housing standards and pollution and environmental protection. Trading Standards Officers www.tssni.gov.uk Trading Standards aims to inform consumers, encourage honest businesses and target rogue traders. TSOs are responsible for: enforcing the Weights and Measures Act investigating complaints from the public Testing weighing and measuring equipment eg petrol stations. ensuring that pre-packed goods are the correct weight and this is printed on the pack. The General Consumer Council www.gccni.org.uk The General Consumer Council for Northern Ireland is a statutory body whose aims are to promote and safeguard the interests of all consumers in Northern Ireland. The Council campaigns on behalf of consumers for the best possible standards of service and protection; undertakes research and data collection; gives advice, information and issues publications. It deals with individual complaints about passenger transport, coal, natural gas and electricity. General Consumer Council for Northern Ireland – Post Primary