Syllabus: Cambridge - IGCSE Business Studies
Module: 3.4 Marketing Strategy
Lesson: 3.4.2 The Nature and Impact of Legal Controls Related to Marketing
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Introduction
This topic, part of the Cambridge IGCSE Business Studies syllabus, explores how legal controls influence marketing decisions. It aligns with Unit 3.4.2 under “Marketing Strategy” and prepares students to understand the balance businesses must strike between creative marketing and legal compliance.
Understanding this topic supports wider curriculum objectives by developing learners’ commercial awareness and workplace readiness. It also enables delivery of Gatsby Benchmark 4 by linking curriculum learning with real-world career contexts.
Key Concepts
Cambridge IGCSE requires learners to understand the following key aspects of legal controls related to marketing:
Purpose of legal controls: Protect consumers from misleading or harmful marketing practices, such as false claims or unsafe product promotion.
Types of legal constraints:
False or misleading advertising – presenting deceptive product features or benefits.
Offensive or inappropriate advertising – including discriminatory or unethical content.
Sale of banned or restricted products – including age-restricted items or unsafe goods.
Use of consumer data – abiding by data protection laws (especially relevant in digital marketing).
Consequences of non-compliance:
Fines, legal action, damaged reputation, or bans on advertising.
Marketing response:
Adjusting campaigns to ensure alignment with regulations, ethical considerations, and cultural sensitivities.
Students are expected to apply this knowledge to assess how firms alter their marketing strategies in response to these controls.
Real-World Relevance
Legal controls affect marketing in every industry. For instance:
Boohoo and misleading environmental claims: In 2023, the UK’s Competition and Markets Authority investigated fashion retailers, including Boohoo, over “greenwashing” in product marketing. The case highlighted the risk of misleading advertising when promoting sustainability without evidence.
TikTok advertising bans: TikTok faced criticism and legal scrutiny over influencer marketing practices targeting underage users. As a result, the platform had to adjust how it promotes products and discloses partnerships.
Energy drink regulation: Companies like Red Bull and Monster must comply with advertising rules that limit targeting of children due to health risks, particularly on television and digital platforms.
These examples bring legal theory into a commercial context, enhancing students’ understanding of why compliance matters.
How It’s Assessed
Cambridge IGCSE Business Studies assessment for this topic typically includes:
Structured Questions:
Short explanations (2–4 marks) such as “State two reasons why a government may introduce legal controls on marketing.”
Analysis Questions:
Mid-length (6–8 marks) requiring explanation of the impact of legal controls on a business’s marketing strategy.
Evaluation Questions:
Long-form (10–12 marks) assessing strategic decision-making – e.g. “Evaluate how legal controls might influence the marketing strategy of a food and beverage company entering a new country.”
Command words such as identify, explain, analyse, and evaluate are commonly used. Strong answers apply knowledge to real business scenarios, referencing stakeholders and consequences.
Enterprise Skills Integration
This topic supports core Enterprise Skills themes:
Decision-Making & Problem-Solving: Students evaluate how a firm might adjust its strategy in response to legal constraints, weighing ethical and commercial implications.
Commercial Awareness: Understanding how laws shape organisational behaviour directly supports the broader goal of preparing students for the workplace, where legal compliance is a daily reality.
Cross-Curricular Application: The topic links to PSHE (ethical marketing), ICT (data protection laws), and English (analysing advertising language).
Enterprise Skills tools such as “Stakeholder Analysis Templates” or “Marketing Ethics Scenarios” can provide hands-on practice.
Careers Links
Teaching this topic contributes to Gatsby Benchmarks:
Benchmark 4: Connects curriculum learning to careers by showing how legal knowledge is used in marketing roles.
Benchmark 5: Can be enhanced with employer insights or guest talks from legal or compliance officers.
Benchmark 6: Simulations or role-play activities replicate marketing decision-making under legal constraints.
Relevant career pathways include:
Marketing and Advertising
Corporate Law and Compliance
Digital Marketing and Data Ethics
Consumer Protection and Regulatory Affairs
Skills in interpreting laws, balancing commercial creativity, and understanding customer rights are valuable across sectors.
Teaching Notes
Delivery Tips:
Use current advertising controversies to spark discussion (e.g. banned ads, influencer marketing issues).
Link to real ads students encounter on social media, encouraging critical thinking about legality and ethics.
Common Pitfalls:
Students often confuse ethics with legal rules. Clarify that not all unethical actions are illegal, and not all legal actions are ethical.
Misapplication of legal terms – ensure precise use of words like “misleading”, “compliance”, and “regulation”.
Extension Activities:
Run a classroom “ad tribunal” where students judge fictional adverts for legality and ethics.
Use Skills Hub scenarios to simulate marketing decision-making under legal constraints.
Invite a compliance officer or marketing professional to discuss the reality of working within legal frameworks.
Assessment Prep:
Practise dissecting exam-style questions by identifying command words and expected structures.
Encourage use of case studies or contemporary examples in higher-mark answers to strengthen evaluation.
