ID 10044 | 04.02.2020 Preview in attachment
The rapid globalization of production and the shift in manufacturing and distribution systems has created a new need for consumer protection. The internet and mobile telephones have revolutionized the way the business is conducted. The increased usage of the internet has had a great impact on developed and developing countries. Nearly all countries are experiencing a high demand of e-commerce activities. This new phenomenon has led to the disparity of knowledge between traders and consumers. The advancement of technology has placed at the disposal of consumers a range of complex and sophisticated products, consumable and non-consumable. To protect consumers against faulty products requires the design of new measures.
Rapid expansion of developing economies has led to the inclusion of millions of new consumers in the global market. While this is of great benefit to the standard of living of those consumers, the levels of protection they receive from consumers' law and good business practices is much lower than that received by consumers in the developed world.
The economic importance of product warranties/guarantees is to provide protection against unsatisfactory performance of products. They state that products meet a level of quality and performance that would be reasonable to expect, given their price and description. Traditionally, warranties and guarantees provide less than full insurance by manufacturers and/or suppliers against faulty products and this serves as risk-sharing between consumers, manufacturers and/or suppliers.
Manufacturers, for example, give warranties/guarantees to suppliers, who, in turn, give the same warranties/guarantees to consumers. In this way, all parties connected with the supply of a product are given protection. In addition, manufacturers and/or suppliers often give express warranties/guarantees directly to consumers as an incentive to buy their products. Warranties/guarantees help to improve the quality of products and can be used as a competitive tool in the marketplace.
Warranties/guarantees state exactly what is covered and what is not covered, the time frame of coverage and what manufacturers and/or suppliers expect of consumers. In addition, warranties/guarantees state the remedies offered by the manufacturer and/or supplier to consumers in the event of product failure.
This document can play a significant part in assisting manufacturers and suppliers in understanding their responsibilities towards consumers while, at the same time, equipping consumers with the sense of their rights to safe, durable and well-performing products. This document is intended to enhance and promote confidence in the products supplied by the manufacturer and supplier.
This document specifies the form and content of warranties/guarantees that a manufacturer and/or supplier can use to address reasonable expectations of products by consumers.
This document is applicable to transactions between businesses and consumers of new and used products, including online transactions. This document is also applicable to products associated with services to complete a transaction (such as, buying clothes that need alteration).
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