The government is also supposed to protect the consumers from deceiving marketing information that is aimed at making misrepresentations to the consumers by creating a positive image of the products and services (D’ Agostino 2008). The government also protects the consumers through regulations on information dissemination that aim at remedying the high market transactions costs and market distortions (Hancher 1990). The government also protects the rights of consumers on the standards of services offered by service providers like the medical services, insurance services, and banking services. The government has a duty to protect the welfare of consumers in contracts, consumers rights are protected during bankruptcy proceedings (Gunning, Holm and Kenway 2009). There are numerous laws that protect consumer interests in the UK.
For instance, the competition Act 1998 prohibits businesses from engaging in anti-competitive agreements during the course of their business operations (Goldring 1998). Some of the anti-competitive practices that have been outlawed are price fixing, agreements to reduce the volume of production, carve up markets and customer discrimination by charging different prices when the difference of supply does not exist.
The Act prohibits the businesses from the use of dominant market power, like 40 percent market share to impose unfair trading practices to the consumers or to decline to supply to the existing customers without any justifiable reasons. Penalties for anti-competitive practices range from 10 percent of the company turnover to disqualification of the business directors (Turner and Martin 2005). In the UK, numerous Acts of Parliament have outlined the responsibilities of sellers to buyers. All the transactions between the buyer and seller are governed by a contract. According to the Sale of Goods Act of 1979, the goods sold must adhere to the description provided to the buyer.
Please type your essay title, choose your document type, enter your email and we send you essay samples