Cyp 3.2 A4.1
AC4.1 Explain the implications of consumer-related legislation on customer service delivery.
Legislation is the most important restriction placed on organisations. There are many laws that affect the delivery of customer service. Implications of these on customer service can include products or services meeting the regulations and that staff need to know and follow clear procedures in order to remain compliant to the legalisations; these procedures must be put in place by organisations and all staff should be trained in these procedures. Breach of these laws can result in fines, compensation, loss of reputation and even imprisonment.
Consumer Credit Act 2006
This act regulates consumer credit and covers areas such as eligibility for credit …show more content…
schemes, cooling off periods, content of credit agreements and calculation of APR.
Consumer Protection Act 1987
This act protects the public by prohibiting the manufacture and supply of unsafe goods. This ensures the manufacturer or seller of a defective product is responsible for damage it causes. The act also allows local councils to seize any goods deemed unsafe and suspend the sale of suspected unsafe goods. It also prohibits the use of misleading price indications.
Trades Descriptions Act 1968
This act prohibits organisations from applying false trade descriptions to any goods.
It also covers the supply or offer to supply any goods to which a false trade description has been applied.
It also means that organisations are not allowed to make certain types of false statement about the provision of any services, facilities or accommodation.
This law is enforced by trading standards officers.
Sale of Goods Act 1979/2002
This act relates to the pricing and quality of products and/or service supplied to a consumer. Goods and services should be fit for purpose, of good quality and as described. It ensures that services provided must be up to an acceptable standard and at a reasonable price (if the price was not agreed in advance).
AC4.2 Explain the implications of confidentiality and data protection legislation for the collection, storage and use of customer information.
Data Protection Act
This act relates to the confidentiality of information and who has access to it. It has eight principles.
All data must:
• Be obtained lawfully and fairly
• Kept no longer than necessary
• Obtained with the consent of the individual
• Be available only to authorised personnel
• Be adequate, relevant and not excessive
• Be treated confidentially
• Be accurate and up to
date
• Not transferred to any place without adequate protection.
The act was designed to protect personal data stored on computers or within an organised paper filing system. All individuals have legal rights to control information kept about them. The majority of the Act does not apply to domestic use, such as keeping a personal address book. Anyone that is holding personal data for other purposes is legally obliged to comply with this Act, subject to some exemptions.
You must make it clear as to the type of information you wish to store regarding your customers or potential customers and why (for example; name, address and any other personal details). This includes information that is taken electronically, such as from online/ e-commerce transactions. You should make sure that you take the data protection principles into consideration when you are storing customer data. You must ensure that any customer information you wish to store is stored securely, manual (paper) data is vulnerable to accidents such as fire or flood. Electronic information, stored on floppy discs, USB’s, removable hard drives etc. are easily stolen, fire damaged or can become corrupt. Practical security should be considered; for example it is useless to store sensitive documents in a safe if the keys are left lying around or somewhere where everyone has access to the information stored.
A risk evaluation should be carried out in order to ensure that security systems are put in place to protect data. An example could include that it may be decided not to give out customer details over the phone, as part of a security system this would mean that you must ensure that all staff are aware of this policy.
Legislation is the most important restriction placed on organisations. There are many laws that affect the delivery of customer service. Implications of these on customer service can include products or services meeting the regulations and that staff need to know and follow clear procedures in order to remain compliant to the legalisations; these procedures must be put in place by organisations and all staff should be trained in these procedures. Breach of these laws can result in fines, compensation, loss of reputation and even imprisonment.
Consumer Credit Act 2006
This act regulates consumer credit and covers areas such as eligibility for credit …show more content…
schemes, cooling off periods, content of credit agreements and calculation of APR.
Consumer Protection Act 1987
This act protects the public by prohibiting the manufacture and supply of unsafe goods. This ensures the manufacturer or seller of a defective product is responsible for damage it causes. The act also allows local councils to seize any goods deemed unsafe and suspend the sale of suspected unsafe goods. It also prohibits the use of misleading price indications.
Trades Descriptions Act 1968
This act prohibits organisations from applying false trade descriptions to any goods.
It also covers the supply or offer to supply any goods to which a false trade description has been applied.
It also means that organisations are not allowed to make certain types of false statement about the provision of any services, facilities or accommodation.
This law is enforced by trading standards officers.
Sale of Goods Act 1979/2002
This act relates to the pricing and quality of products and/or service supplied to a consumer. Goods and services should be fit for purpose, of good quality and as described. It ensures that services provided must be up to an acceptable standard and at a reasonable price (if the price was not agreed in advance).
AC4.2 Explain the implications of confidentiality and data protection legislation for the collection, storage and use of customer information.
Data Protection Act
This act relates to the confidentiality of information and who has access to it. It has eight principles.
All data must:
• Be obtained lawfully and fairly
• Kept no longer than necessary
• Obtained with the consent of the individual
• Be available only to authorised personnel
• Be adequate, relevant and not excessive
• Be treated confidentially
• Be accurate and up to
date
• Not transferred to any place without adequate protection.
The act was designed to protect personal data stored on computers or within an organised paper filing system. All individuals have legal rights to control information kept about them. The majority of the Act does not apply to domestic use, such as keeping a personal address book. Anyone that is holding personal data for other purposes is legally obliged to comply with this Act, subject to some exemptions.
You must make it clear as to the type of information you wish to store regarding your customers or potential customers and why (for example; name, address and any other personal details). This includes information that is taken electronically, such as from online/ e-commerce transactions. You should make sure that you take the data protection principles into consideration when you are storing customer data. You must ensure that any customer information you wish to store is stored securely, manual (paper) data is vulnerable to accidents such as fire or flood. Electronic information, stored on floppy discs, USB’s, removable hard drives etc. are easily stolen, fire damaged or can become corrupt. Practical security should be considered; for example it is useless to store sensitive documents in a safe if the keys are left lying around or somewhere where everyone has access to the information stored.
A risk evaluation should be carried out in order to ensure that security systems are put in place to protect data. An example could include that it may be decided not to give out customer details over the phone, as part of a security system this would mean that you must ensure that all staff are aware of this policy.