1. Consumer Powers and Protections
Chapter 1
Consumer Powers and Protections

2. 1.1 Consumer = is someone who uses goods and services
Goods = physical objects that are produced (cookies, jeans)
Services = actions that are performed for someone (haircut)

3. Your Economic Role
Consumer
Worker
Citizen
How are these related???

4. Consumers Have POWER
Collectively our purchasing decisions affect which goods and services are produced.
Example- consumers buy lots of SUV’s, they make more, hire more workers, more people earn more money, etc. etc.
Marketplace= all of the goods and services available for sale to general public
Retailers= sell directly to the consumers (Wal Mart)
Teens spend $172 BILLION Yearly

5. Technology Changes how we buy things TV Internet
Shop and Compare from home!
Easier to buy on impulse

6. Effective Consumers Set goals Think critically Do research
Manage every day finances
Plan for financial security

7. 1.2 The Consumer Movement
Power of the consumers as a group can balance the power
Consumer advocates= people or groups who work on behalf of consumers
Page pioneers of the consumer movement

8. Consumer Rights and Responsibilities Page 29
<pg 15 wkbk read aloud>
Federal Laws Page 30
Federal Agencies Page 31
<pg. 17 wkbk., poss. posters>

9. Other consumer Assistance
Consumer Groups- focused on education, protection, and advocacy
Consumer Testing Agencies and Publications-
Consumers Union (CU) an independent consumer testing agency, buy products and test them
Consumer Reports Magazine

10. Better Business Bureau- offers reports on local business that consumers report
Consumer affairs department
Consumer action panels
Media

11. 1.3 Safeguarding your privacy
Identity Theft= illegal use of a persons personal information
Social Security Number- unique 9 digit number to keep track of your earnings
DO NOT GIVE OUT UNLESS NECESSARY
How Does it Happen?? Pg 35

12. Preventing Identify Theft
Handle mail with care
Keep personal items locked
Safeguard passwords
Do not give out personal info
Cut up old credit cards, statements,etc.

13. If your Identity is stolen
File a report with police
Notify banks and credit card companies
Alert agencies

14. Data Collection and Privacy Issues
Some info is needed to process an order
Some companies will keep that info
Some might sell it

15. Online Profiling
When companies collect info about web sites consumers visit and then use that info to predict what consumers might buy in future
Cookies- small files stored on your computer that allows web sites to remember info about you
<debate the issue>

16. 1.4 Recognition of Fraud and Deception
Deceptive Advertising- likely to mislead consumers through false statements, omitted info, etc.
Bait Switch – retailers advertise a product that it has no intention of selling in hopes the consumer will buy something else
False promise of free gifts
Deceptive pricing – saying a “sale” when it is no better than every day price
Hidden Prices

17. Fraud
Fraud- deceitful conduct designed to manipulate another person for some gain.
Pyramid scheme – illegal get rich quick plan
Chain letters
BUYER BEWARE

18. 1.5 Resolving Consumer Problems
Registering a complaint
State the problem
Have receipts
What do you want to happen?
Go to store or write letter see page 48

19. Legal actions-
Small claims court
Lawsuit
Class action suit