Consumer protection (distance selling) regulations 2000- distant selling is any source of selling apart from face to face contact between customer and the business for example through a website or mail order catalogue. Both Nike and krispy kremes provide their customers with distant selling you can buy products from their website and have it delivered to your door distant selling can affect a business because people might not want to buy online as they feel scared to fall victim to fraud this could result in poor sales online. As my two organisations provide distant selling they must give their consumers information about:
Business
Goods or services they are selling
Payment arrangements
Delivery arrangements
Consumer rights to cancel their orders
Data protection act 1998- this acts requires krispy kremes and Nike to protect their customers from unfair use of their personal information as they keep a database of customer information when their marketing department sends out direct emails. Both organisations have to make sure that the information from the database must be:
Obtained fairly and lawfully
Used only for the purpose stated during collection
Adequate, relevant and not excessive in relation to the intended use
Accurate and where necessary kept up to date
Not kept for longer than necessary
Processed in line with your rights
Subject to procedures to prevent unlawful processing, accidental loss, destruction and damage to personal data
Protected from transfer to an area outside the EEA unless adequate protection exists for that data in the area
It is important for both organisations to register customers details when they purchase a product online, and to give them the option to opt in and receive information about future offers, this requirement is legal and it would be illegal for any organisation including the two I have chosen to send customers information that they have not requested
Voluntary constraints:
Marketing activities are also watched carefully by the advertising standards authority aka ASA, which is an industry body rather than a legal framework, which promotes and maintains the British code of advertising, sales promotion and direct marketing, these are a set of rules and standards businesses like Nike and Krispy Kremes should follow. When marketing this allows them to:
Keep within the legal frame work
Protect customers from misleading claims
Create an even footing for advertisers
The principles of the code permit the organisations advertising to be legal, decent, honest and truthful. It also requires krispy kremes and Nike as a business to prepare advertisements with a sense of responsibility and should not produce adverts that are misleading or offensive as this is misleading to the customer and if an advert causes offense e.g. being racist in advertisements having swear words etc this could cost the company millions of pounds due to changing the advert and losing profit, if either business goes against the code of practice the ASA are able to:
Insist that it approves any advertising before it is published or broadcasted
Refer the advertiser to the office of fair trading
Ask TV stations, radio stations and publishers to withdraw the advertising from their broadcasts and publications
Pressure groups:
Pressure groups= an organised group which work to influence the behaviour or beliefs of a government or business they will try and raise awareness of their cause in the media and to the public in order to pressurise the business to change. This can result in the business to gain negative publicity and can damage their reputation.
Pressure groups that target krispy kremes:
Earth first- they campaign against the destruction of the environment. They could target krispy kremes as they could destroy the environment to place their stores.
Food commission- an independent food watchdog campaigning for safer, healthier food in the . They could see krispy kremes un-healthy and could cause problems for people.
Pressure groups that target Nike:
Anti-globalization movement-a small college campaign that is against the conditions that Nike products are made.
United students against sweatshops- another small college/university campaign that is against the way the Nike products are made.
Liberty- campaigns to defend and extend human rights and civil liberties, it is no secret that Nike once used child laborers to produce their products and pay them a tiny amount of wages.
Earth first -they campaign against the destruction of the environment. They could target Nike as they could destroy the environment to place their stores.
Consumerism:
Is a social movement which gives consumers some powers over business It gives consumers rights to:
Be safe
Choose
Be informed
Be heard
TV programmes like watchdog and consumer right programmes like which? Help consumerism by forcing businesses take account their practices and products, the office of fair trading also play a part in consumerism by enforcing consumer legislation and taking care of unfair traders. E.g. if Nike say their trainers can make you fly then the product should actually make you fly otherwise consumers will not be happy and make complaints
Acceptable language:
When advertising the two businesses need to make sure they avoid offending consumers, acceptable language can be subjective and everyone’s reactions to the same text can change depending on the images that are provided with it and the context in which it is used. The ASA has identified areas where people find the use of language unacceptable, these are:
Referring to sex
Usage of strong language or swear words
Mocking peoples religion or beliefs
Show people in a demanding way and offend on the grounds of gender, race, religion, sexuality, age or disability
It is important for the businesses to chose the appropriate language when advertising.
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by
marrtiniss (student)
