CONSUMER EDUCATION

Chapter 3Consumer Protection

Consumer Rights and Responsibilities

Consumer Rights and Responsibilities Consumer Bill of Rights (7)

Right to Safety – Products must not endanger consumers’ lives or health (ex. recalls)

Right to be informed – Businesses must provide accurate information in advertising, labeling and sales practices. (Ex. Food labeling in Jewel)

Right to choose – Consumers must have a variety of goods and services from which to choose.

Consumer Rights and Responsibilitiescontinued..

Consumer Bill of Rights (7) continued.. Right to be heard – The

government must consider consumer interests when creating laws. (Ex. Lobby)

Right to redress – Consumers should be able to obtain fair remedies to consumer problems. (Ex. Legal action)

Consumer Rights and Responsibilitiescontinued..

Consumer Bill of Rights (7) continued.. Right to Consumer Education – Sufficient information

should be available for consumers to make rational decisions.

Right to a healthy environment – Businesses should avoid polluting the environment and should contribute to the welfare of the community in which they operate.

DENTISTLAPBAND

TSA AGENTSSCARED TO DEATH

EVIL NEIGHBORTRAVEL BED

RecapWhat Right Is It?

Consumer Rights and Responsibilitiescontinued..

Consumer Responsibilities (7) Responsibility to Use Products Safely –

Consumers should use products the way the manufacturer meant it to be used.

Responsibility to Use Information – Consumers are responsible for using the information to evaluate product choices.

Responsibility to choose carefully – Consumers should take advantage of product variety and by considering many options and making rational choices.

Consumer Rights and Responsibilitiescontinued..

Consumer Responsibilities (7) continued.. Responsibility to express

satisfaction or dissatisfaction – consumers should tell their elected officials their opinions on consumer issues and inform them of improper business practices.

Consumer Rights and Responsibilitiescontinued..

Consumer Responsibilities (7) continued.. Responsibility to seek redress –

Consumers should inform businesses of product defects and unfair practices.

Consumer Rights and Responsibilitiescontinued..

Consumer Responsibilities (7) continued.. Responsibility to be an educated

consumer – consumers should take advantage of opportunities to gather information and learn how to make rational buying decisions.

Responsibility to contribute to a healthy environment – consumers should support businesses that operate responsibly and report environmental abuses.

Government and Consumer Protection

Consumer movement – seeks to protect and inform consumers by requiring such practices as honest advertising, product warranties, and improves safety standards.

Government and Consumer Protection continued..

Government protection Federal Trade Commission

(FTC) – Responsible for protecting consumers from unfair or deceptive business practices. Ex False advertisingCease-and-Desist order

Consumer Product Safety Commission (CPSC) – Responsible to protect consumers from dangerous products.

Government and Consumer Protection continued..

Government protection continued.. Warranties

WarrantyFull warrantyLimited warrantyImplied warranty

Deception and Fraud

Deception Trading up Loss leader

Fraud bait and switch Pyramid Schemes Telephone Fraud

Deception and Fraud continued..

Resolve Consumer Problems Making Complaints (letter)

Date and location of transaction A specific description of the

product you purchased Product price and method of

payment A specific explanation of what is

wrong with the product. A statement of how you want

the problem resolved.

Deception and Fraud continued..

Resolve Consumer Problems continued The complaint process at the place of

business pg 110 – 111

Help from Consumer Organizations Better Business Bureau (BBB)

Helps resolve disputes between consumers and sellers

Keeps files of complaints on local businesses. Educates consumers with tip sheets and info

on internet. Promotes honest advertising and selling

practices.

Deception and Fraud continued..

Resolve Consumer Problems continued Arbitration Cooling off periods Small claims court.

No lawyer neededCosts are lowQuick resolutions