Consumer Legislation

The final external factor that can have an impact on revenues is any change in legislation. Sometimes things that have previously been allowed are:

•Banned – they are no longer permitted to exist

•Changed in terms of how they can be used or sold 0r sold – for example, how goods can be packaged

•Changed in terms of how they can be advertised or promoted

Such bans and changes can have an considerable impact on sales. Customers may stop buying something because of a change in the way it is labelled or displayed. Similarly, if a product is banned, it becomes illegal to buy or sell it without facing serious consequences.