Transcript Chapter 25 - McGraw Hill Higher Education

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PPTs to accompany Barron, Fundamentals of Business Law 7Rev
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The law of marketing
Chapter 25
Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd
PPTs to accompany Barron, Fundamentals of Business Law 7Rev
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Learning objectives
At the end of this chapter you should
understand:
• the term ‘marketing’ and ‘the marketing function’
• why the marketing process requires legal regulation
• the term ‘lottery’ and the main provisions of the state
and territory lotteries, gaming and betting Acts
• the legal requirements for the control of raffles
• the legal requirements that affect market games and
competitions
• the term ‘game of chance’ and their legal requirements
• the legal requirements for obtaining permission to
conduct games and competitions
Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd
PPTs to accompany Barron, Fundamentals of Business Law 7Rev
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Learning objectives (cont.)
• the term ‘gift promotion’ and their legislative
requirements
• regulations imposed by the law in relation to marketers
providing customers with gifts and samples
• the operation of the Do Not Call Register
• the legislation regulating the packaging and labelling of
goods and services.
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PPTs to accompany Barron, Fundamentals of Business Law 7Rev
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Introduction
Marketing:
The process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and
services to create exchanges that satisfy individual and
organisational goals.
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The marketing function
‘To identify the wants or needs of
consumers, and to determine how best
to satisfy these using the marketing
mix.’
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The marketing mix (four Ps)
1. Product
2. Price
3. Promotion
4. Place (distribution)
These four factors are largely controllable.
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PPTs to accompany Barron, Fundamentals of Business Law 7Rev
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External forces on the marketing
mix
• Economic environment
• Cultural/social environment
• Political environment (e.g. the GST)
• Competitive environment
• Legal environment
These factors are largely uncontrollable.
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The role of law
To define
acceptable
vs
unacceptable
behaviour
Marketing law includes any regulations
that attempt to ‘draw the line’ between
acceptable competitive business conduct
and unacceptable business practices.
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Marketing laws
Designed to protect:
• Consumers
• Traders
• The competitive system that underpins
the ‘free market’ Australian economy.
Consider the application of the
Competition and Consumer Act 2010
and the Australian Consumer Law.
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Product laws
1. Intellectual property:
– Patents for new inventions
– Registering a trade mark
– Registering a design
– Copyright
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Product laws (cont.)
2. Packaging and labelling:
Designed to standardise
information and protect against
misleading or deceptive
information, e.g.
– Weight
– Content of goods
– Food ingredients
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Product laws (cont.)
3. Product liability:
Minimum acceptable product
safety and quality standards,
such as:
– Food hygiene regulations
– Manufacturer liability for defective or
negligent products
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Price laws
Protect against practices such as:
• Price fixing
• Price discrimination:
– Different prices to different customers
• Predatory pricing:
– Selling below cost for an extended period
• Resale price maintenance:
– Recommended Retail Price
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Promotion laws
Protect against misleading, deceptive
or 'high pressure' promotional
activities, e.g.
– Market games
– Bait advertising
– Pyramid selling schemes
– Door-to-door sales ‘cooling-off' period
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Place laws
Prevent suppliers from imposing
unreasonable restraints on distributors,
e.g.
– Exclusive dealing—restricting products that a
distributor may sell
– Territorial restraints—restricting the area in
which a distributor may operate
– Customer restraints—restricting the
customers with which a distributor may deal
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PPTs to accompany Barron, Fundamentals of Business Law 7Rev
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Market games and competitions
• Lottery—a scheme for distributing prizes
by lot of chance, in which:
– there must be a scheme
– there must be a game of chance
– consideration must be provided by entrants.
• Legal if lottery designed to promote trade
or business.
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Trading stamp promotions
Operates by customers saving trading
stamps or coupons obtained when
purchasing goods from a trader. On
reaching a certain number of stamps, the
customer can receive a free gift.
Types:
– Trading stamp companies
– Private trading stamp schemes
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PPTs to accompany Barron, Fundamentals of Business Law 7Rev
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Offering prizes and gifts
• A common marketing practice is to provide
gifts with the purchase of certain goods.
• This practice is quite legal. Problems arise
where the retailer fails to provide the prize
as promoted.
• The Australian Consumer Law prohibits a
trader from offering gifts and prizes with the
intention of not providing them.
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Other practices
• Door-to-door sales
• Bait advertising
• Referral selling
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Price surveillance
The ACCC:
• undertakes price surveillance
• holds inquiries into the supply of
specified goods or services
• monitors the prices, cost and profits
of any industry or business.
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Product packaging and labelling
• Common law protection
• Statutory protection:
– Australian Consumer Law
 Misleading and deceptive conduct
 Unfair trade practices
 Product safety and information standards
– Trade measurement legislation:
 National Measurements Act 1960 (Cwlth)
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Poisonous and dangerous goods
• Specific legislation in each state and
territory that regulates the production and
sale of poisonous and dangerous goods
• Poisons legislation
• State poisons codes
• National drugs and poisons schedule
committee
• Dangerous goods
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Drugs and Therapeutic Goods
Therapeutic Goods Act 1989 (Cwlth)
• Legislation to ensure the safety and
efficacy of therapeutic goods available
in Australia.
• Functions:
– Evaluate new therapeutic goods.
– Develop test methods.
– Conduct testing programs.
– Liaise with industry.
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Food Safety
• Laws prohibiting:
– the sale of food that is unfit for human consumption.
– misleading and deceptive advertising.
• Australian and New Zealand Food
Authority (ANZFA):
– Establishment of Food Standards Code.
– Assessment of safety of genetically modified food
products.
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PPTs to accompany Barron, Fundamentals of Business Law 7Rev
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