Legal Definitions - consumer boycott

A consumer boycott occurs when a group of individuals collectively chooses to stop purchasing goods or services from a specific company, brand, or even an entire industry. This action is typically taken as a form of protest, aiming to exert economic pressure on the target to change a policy, practice, or behavior that consumers find objectionable. The goal is to impact the target's sales and reputation, thereby compelling them to address the concerns raised by the boycotting consumers.

Here are some examples illustrating a consumer boycott:

• Example 1: Ethical Sourcing Protest
  After reports surface detailing a major electronics manufacturer's use of conflict minerals and poor labor conditions in its overseas factories, a coalition of human rights organizations and concerned citizens launches a campaign. They urge consumers worldwide to stop buying smartphones and laptops from that particular brand until the company commits to transparent, ethical sourcing and improved worker welfare. Many consumers respond by choosing competitor brands for their next purchases.

  This illustrates a consumer boycott because a significant number of consumers are collectively withholding their purchasing power from the electronics manufacturer. Their refusal to buy the company's products is a direct protest against its unethical supply chain practices, aiming to pressure the company into making responsible changes.

• Example 2: Environmental Policy Disagreement
  A popular fast-food chain announces a new packaging initiative that heavily relies on non-recyclable plastics, despite growing public demand for sustainable alternatives. Environmental advocacy groups quickly organize a social media campaign, encouraging their followers and the broader public to avoid purchasing food from this chain until it adopts more eco-friendly packaging solutions. Many environmentally conscious diners decide to frequent other restaurants that use compostable or recyclable materials instead.

  This example demonstrates a consumer boycott as consumers are deliberately choosing not to patronize the fast-food chain. Their collective decision to take their business elsewhere is a form of economic protest against the company's environmentally detrimental packaging policy, seeking to compel a shift towards more sustainable practices.

• Example 3: Response to Controversial Advertising
  A well-known athletic apparel company releases an advertising campaign that many consumers find culturally insensitive and offensive. Despite initial backlash, the company defends its campaign and refuses to withdraw it. In response, several online communities and public figures call for a boycott, urging their followers to stop buying the company's shoes and clothing. Sales figures for the company show a noticeable dip in the following quarter, attributed by analysts to the public outcry.

  This scenario represents a consumer boycott because a segment of the public is intentionally refraining from purchasing products from the athletic apparel company. Their collective action is a direct expression of disapproval regarding the controversial advertising, intended to inflict financial harm and pressure the company to be more mindful of cultural sensitivities in its marketing.