Luật học - Chapter 25: The law of marketing

This is the prescribed textbook for your course.Available NOW at your campus bookstore!The law of marketingChapter 25Learning objectives At the end of this chapter you should understand:the term ‘marketing’ and ‘the marketing function’why the marketing process requires legal regulationthe term ‘lottery’ and the main provisions of the state and territory lotteries, gaming and betting Actsthe legal requirements for the control of rafflesthe legal requirements that affect market games and competitionsthe term ‘game of chance’ and their legal requirementsthe legal requirements for obtaining permission to conduct games and competitions Learning objectives (cont.)the term ‘gift promotion’ and their legislative requirementsregulations imposed by the law in relation to marketers providing customers with gifts and samplesthe operation of the Do Not Call Registerthe legislation regulating the packaging and labelling of goods and services.IntroductionMarketing: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.The marketing function‘To identify the wants or needs of consumers, and to determine how best to satisfy these using the marketing mix.’The marketing mix (four Ps)ProductPricePromotion Place (distribution) These four factors are largely controllable. External forces on the marketing mixEconomic environmentCultural/social environmentPolitical environment (e.g. the GST)Competitive environmentLegal environmentThese factors are largely uncontrollable.The role of lawTo defineacceptable vsunacceptablebehaviourMarketing law includes any regulations that attempt to ‘draw the line’ between acceptable competitive business conduct and unacceptable business practices.Marketing lawsDesigned to protect:ConsumersTradersThe competitive system that underpins the ‘free market’ Australian economy. Consider the application of the Competition and Consumer Act 2010and the Australian Consumer Law.Product lawsIntellectual property:Patents for new inventionsRegistering a trade markRegistering a designCopyrightProduct laws (cont.)Packaging and labelling:Designed to standardise information and protect against misleading or deceptive information, e.g.WeightContent of goodsFood ingredientsProduct laws (cont.)Product liability: Minimum acceptable product safety and quality standards, such as: Food hygiene regulationsManufacturer liability for defective or negligent productsPrice lawsProtect against practices such as:Price fixingPrice discrimination:Different prices to different customersPredatory pricing:Selling below cost for an extended periodResale price maintenance:Recommended Retail PricePromotion laws Protect against misleading, deceptive or 'high pressure' promotional activities, e.g. Market gamesBait advertisingPyramid selling schemesDoor-to-door sales ‘cooling-off' periodPlace laws Prevent suppliers from imposing unreasonable restraints on distributors, e.g.Exclusive dealing—restricting products that a distributor may sellTerritorial restraints—restricting the area in which a distributor may operateCustomer restraints—restricting the customers with which a distributor may dealMarket games and competitionsLottery—a scheme for distributing prizes by lot of chance, in which:there must be a schemethere must be a game of chanceconsideration must be provided by entrants.Legal if lottery designed to promote trade or business.Trading stamp promotionsOperates 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 companiesPrivate trading stamp schemesOffering prizes and giftsA 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.Other practicesDoor-to-door salesBait advertisingReferral sellingPrice surveillanceThe ACCC:undertakes price surveillanceholds inquiries into the supply of specified goods or servicesmonitors the prices, cost and profits of any industry or business. Product packaging and labellingCommon law protectionStatutory protection:Australian Consumer LawMisleading and deceptive conductUnfair trade practicesProduct safety and information standardsTrade measurement legislation:National Measurements Act 1960 (Cwlth)Poisonous and dangerous goodsSpecific legislation in each state and territory that regulates the production and sale of poisonous and dangerous goodsPoisons legislationState poisons codesNational drugs and poisons schedule committeeDangerous goodsDrugs and Therapeutic GoodsTherapeutic 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.Food SafetyLaws 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.