Government and Consumer Protection

Chapter 3, 3.2

Federal Trade Commission (FTC)• Created in 1914

• Protects consumers from unfair business practices (esp. labels & advertising)

• Issues “cease and desist orders”• Most cities have local office

Consumer Product Safety Commission (CPSC)

• Created in 1972• Protects consumers from dangerous products

• Has power over ALL products• Sets safety standards, and bans items considered hazardous

• Provides data to consumers about safety

Environmental Protection Agency (EPA)

• Created in 1970• Enforces laws that protect environment

• Ensures safe disposal of waste, sets standards for air/water quality• Businesses may have to add special equipment to comply, increasing

prices

State and Local Protection

Often state requirements are more stringent than federal, and offer

consumer departments at the state level

Warranties Helps businesses gain trust of

consumers Reduce risk to consumers Warranty only works if company

backs it up

Magnuson-Moss Warranty Act(Specifies how warranty must be written, if there is one)

FULL WARRANTY LIMITED WARRANTY

Specific and written Repair/replace defective

items within a specified time period (no charge)

Explain how to file claim

Written warranty with limitations

Often has expiration of coverage

Must promise solution and explain how to file claim

Implied Warranties Unwritten guarantee Offers you right to return even without written

warranty