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Legal Controls Over Marketing

Exam code: 7115
Written by: Ashika|Reviewed by: Caroline Carroll|Updated 2 July 2026

The purpose of legal controls to protect customers

The purpose of legal controls to protect customers

  • Legal controls are laws designed to protect consumers from unfair or unsafe business practices

  • Legal controls force businesses to adopt ethical, responsible and consumer-friendly marketing strategies

  • Non-compliance can lead to

    • Financial penalties

    • Bans on advertising

    • Lawsuits

    • Damage to brand image and customer trust

  • As a result, marketing teams must work closely with legal advisors to ensure that each element of a marketing mix respects current laws and protects consumer interests

The effects of legal controls on marketing

The effects of legal controls on marketing

Misleading promotion

  • Businesses must not make false or exaggerated claims about products in advertisements, packaging or promotional campaigns

  • Examples of illegal promotions:

    • Advertising a discount that is not genuine,

      • E.g. Claiming "50% off this week only" when the product was never sold at the higher price

    • Suggesting a product has benefits it does not actually deliver

      • E.g. Claiming a product is waterproof when it provides no protection from the rain

  • Marketing strategies must be carefully reviewed to ensure honesty, accuracy, and transparency in all communications

Faulty and dangerous goods

  • Products sold to customers must be safe and fit for purpose

  • It is illegal to sell goods that could cause harm or injury due to poor design, manufacturing defects or a lack of clear safety instructions

  • Businesses may need to

    • Implement quality control checks

    • Provide clear instructions and safety warnings

    • Avoid marketing products in a way that encourages unsafe use

Examples of consumer protection legislation

  • The Australian Consumer Law protects consumers from unfair and unsafe business practices when buying goods and services, including

    • Unfair trading

    • Consumer guarantees

    • Door-to-door sales and direct marketing

    • Product safety

  • In the UK, the Consumer Rights Act (2015) protects consumers from unfair and dishonest business practices

    • It covers the product or service, returns, repairs, replacements and delivery