Warning: Consumer protection law changes
Marketers need to be aware of a change in the law on unfair trading. The new Consumer Protection Regulations (CPRs) bring into UK law the EU Unfair Commercial Practices Directive. This is the biggest change to advertising and marketing law in a generation and marketers need to be aware of the implications.
The CPRs, which replace the misleading advertising rules, introduce a general clause into UK law which means that business has a duty not to trade unfairly. This applies right across business-to-consumer practices and covers advertising.
Potential areas of concern for marketers include:
- BOGOF promotions and other ‘free’ promotional items
- Price indications
- Invitations to purchase
- Competitions and prize promotions
- Word-of-mouth marketing, blogs and advertorials
- Children and other vulnerable consumers, and
- Look-a-like products
In addition to the general duty there are specific prohibitions. Most of these prohibitions potentially carry a criminal as well as a civil liability for which CEOs and Marketing Directors can expect to answer for in court. The good news is that the Government have agreed that the ASA/CAP system of self-regulation will be the responsible body for advertising enforcement.
CAP had intended that the new rules should be in force at the end of May 2008; however, there was a delay in the sign-off procedures. The CAP and BCAP rules will not now be published just yet but it is highly likely that the ASA Council will take into account the CPR rules when judging complaints from this point forwards. So do make sure you download and digest this ISBA guidance note.
... 27 May 2008... The Government has published a guide to accompany the CPRs. The guide recommends a set of good practices in giving the consumer information about prices in various situations. It's issued by the Department for Business, Enterprise & Regulatory Reform, it's called Pricing practices guide: guidance for traders on good practice in giving information about prices, and it's available to download here.
92 Kb | 23 May 2008
