Topic Summaries

Legal controls on marketing

IGCSE > Business > Pearson IGCSE > IGCSE Business Topic Summaries > Marketing > Legal controls on marketing
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Formula sheet

Marketing is a powerful business tool, but it must be ethical and lawful. In the UK, several legal controls exist to ensure that businesses promote their goods and services honestly and responsibly. These rules are enforced by organisations like the Advertising Standards Authority (ASA).

  • Purpose of legal controls: the main aim is to protect consumers from:
    • False or misleading promotion: This includes exaggerated claims, omitted information, or fake endorsements that could deceive customers. For example, a skincare product that claims to “cure acne overnight” without scientific proof would be in breach the law.
    • Faulty goods: products must meet safety and quality standards. Marketing cannot disguise defects or poor performance.
  • Laws that support this in the UK include:
    • Consumer Protection from Unfair Trading Regulations 2008 – bans misleading advertising and aggressive sales tactics.
    • Consumer Rights Act 2015 – ensures product quality, as discussed previously.
    • Trade Descriptions Act 1968 (now mostly absorbed into other laws) – requires all descriptions of products or services to be accurate and not misleading.
  • Effects of legal controls on businesses:
Effect Description
Accurate advertising required Businesses must fact-check claims, verify components, and avoid exaggeration
Compliance costs Legal compliance may involve consulting lawyers, training staff, and reviewing campaigns
Avoiding penalties Non-compliance can lead to fines, bans on advertising, or legal action
Protecting brand image Ethical marketing enhances a company’s reputation, especially amongst socially conscious customers
Product development pressure Firms may need to adjust packaging, testing, or materials to meet legal standards before advertising or launching products

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