Saturday, 25 December 2021

The rules on advertising

The Consumer Protection Act 2018 did something new. Something that had never been done before.

It included strict rules on how companies can behave when they advertise their goods and services. 

There were hints in earlier laws but this was serious, specific and comprehensive. And it's good. And it came with serious penalties for those companies that decide not to behave properly.

Here's a brief summary of the rules. 

ADVERTISING

Suppliers MUST NOT make false claims about:
  • The nature of a product and its uses 
  • Whether something is new or used 
  • If something has been approved 
  • When or for how long it's available 
  • When it can be made available or delivered 
  • The price 
  • Warranties, guarantees and consumer rights 
They MUST:
  • Advertise goods for the real price 
  • Have enough stock to meet reasonably expected demand 
  • Disclose any limitations on the stock available 
  • Indicate how long the goods will be available 
  • Understand that if they fail to disclose how long something will be available, it must be available for one month 
  • Understand that if goods are not availed as advertised the consumer can cancel the purchase and get a refund. 
INFORMATION

When something is offered for sale:
  • The information provided on goods for sale must be accurate, clear and complete 
  • The price must be displayed clearly 
  • The price must be displayed IN PULA
  • They supplier must not charge the consumer more than the price displayed 
PENALTIES

If a supplier breaks these rules they can face a fine of up to P50,000, jail for up to 3 years, or both.


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