Lesson 1: Being an Informed Consumer

Overview of Lesson

• What is a consumer? • When is someone NOT a consumer?• What is a contract?• What questions should you ask before you

buy?

What is a consumer?

• A consumer is a person who buys goods or services for personal use or their own consumption

• In order to be protected by law, consumers must buy from someone whose business it is to sell goods or provide services, e.g. you are not protected if you buy a second-hand car from a private seller

You are not a consumer if you….

• Buy goods for commercial purposes

• Buy goods from an individual that is not a business

Difference between a Consumer and a Customer

Consumer Customer

What is a contract?

• Goods on display in a shop window are considered an “invitation to treat”, which is an invitation to make an offer to purchase the goods which can be accepted or rejected by the retailer

• A contract is a legally binding agreement, between two or more parties which can be enforced by law

• When you buy goods or services you are entering into a contract

• A contract is formed following offer, acceptance and consideration (payment)

Can I insist on something being sold to me?

• No. The shopkeeper displays the goods for sale and invites you to buy the goods

• However, the shopkeeper can still refuse to sell you the goods

• A contract is made only when you offer to buy the goods, the seller accepts your offer and consideration is paid

Before you buy…

• Can I afford it? • Do I really need it? • What is the unit price of the

product? • Is the product suitable for the

purpose I need it for?

If you take the time to answer these questions, you’ll be a more informed consumer

Before you buy…

• Are there any hidden extras? • What does the description tell me? • Have I checked the price of the

product in several different retailers? • Will a ringtone download tie me into a

subscription service?

Before you buy…

• What are the terms and conditions of buying the product/service (e.g. buying a mobile phone on an upgrade may lock you into an 18 month contract)

• What is the returns policies? • If it’s an electrical or gas product, or a

toy, does it have a CE Mark? • Do I have room for it?

Summary of Lesson

• What is a consumer? • When is someone NOT a consumer?• What is a contract?• Questions to ask before you buy