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Ethical and Legal Aspects of Marketing Ian Mejia Redfield College 2009 ‘Being good is good business’ – Anita Roddick, The Body Shop founder Ethics - The general values and morals that determine the generally accepted behaviour. Some groups have voluntary codes of conduct or ethical standards. A business also has a legal responsibility to comply with legislation (Mainly the Trade Practices Act 1974) Environmentally Responsible Products Business can damage the environment through: -depleting natural resources in production -creating products or packaging that is not environmentally friendly. How can businesses overcome these issues? Examples of Ethical Conduct Starbucks – working with coffee growers Hybrid cars – reducing the use of natural resources The Body Shop – no testing on animals Woolworths – move to no plastic bags Ethical Issues in Marketing Creation of Needs Retail Developments Sugging Creation of Needs Marketing can now create a need in a consumers mind instead of targeting a demand in customers. Issues with advertising to kids ‘Impulse buying’ Sugging Selling under the guise of a survey or research. Not illegal but highly unethical You need to be smarter when filling in details. Consumer Law in Australia - - Deceptive and misleading advertising This is illegal under Section 53 of the trade Practices Act 1974. Page 208 in the text book Price Discrimination The practice of selling the same product at different prices in different markets. Section 49 states businesses must not charge different prices for goods, if those prices do not reflect differences in the costs of providing those goods to different businesses. Implied Conditions and Warranties Implied conditions is a condition of sale that requires a product to be fit to serve the purpose for which it is purchased. Merchantable quality is a condition that the product is in a condition reasonable for its advertised condition and price. Resale Price Maintenance Resale Price Maintenance is a practice which involves a manufacturer making an agreement with its distributors that a product be sold at a certain price.