Consumer Protection

Capital Expenditure

Spending on items that can be used over again

This is a fixed asset to a business and is shown on the company balance sheet

Revenue expenditure

Spending on items that either have been consumed or will be consumed soon

This is shown on a businesses profit and loss account and is an expense to the business

Consumer Exploitation

Any act being undertaken by a business to take advantage of buyers in some way detrimental to the buyer

Consumer Protection

Consumer Protection includes all of the government legislation and various organisations established to help protect consumers against unfair selling practices.

In markets with perfect competition there is little need to protect consumers

Consumer Rights Act 2015

A buyer is entering into a contract with the retailer when purchasing a good or service

Goods must be fit for purpose

If the good or service is found faulty through no fault of the customer then they are entitled for a full refund

Competition and Markets Authority

Consumer Credit Act

Lenders must disclose all financial information before consumers enter into any legally binding credit agreement

Must be made clear to the consumer

Interest Rate Charges

Their right to cancel

Payment Terms

Any additionalcharges

The CMA investigates markets to ensure they are working well for consumers and to ensure any anticompetitive practices are not taking place

Collusion within oligopolies

Collusion takes place when rival companies cooperate for their mutual benefit by influencing production and prices which prevents fair competition

They provide firms with warnings to change their ways but these become fines if nothing changes

CMA investigates mergers between companies to ensure they are in the interest of consumers