1. Becoming a Smart Consumer Influences on Consumers Smart consumers are knowledgeable about the process of selling goods. They also analyze their own shopping habits – whether they need a product, whether they can afford it, and how they can make the best possible decisions when purchasing that product. Often, consumers buy things in response to advertising.

2. Today, an increasing amount of advertising is directed at teens because they represent the age group with the most disposable income. Consumers must realize that advertising is meant to make a product seem more desirable and may influence them to purchase a product that they do not really want or need.

3. Consumer Protection All levels of government provide certain protections to consumers. Congress has passed laws that protect consumers by prohibiting unfair practices (such as false advertising), ensuring the quality and safety of products, establishing agencies that help consumers protect their rights, improving the operation of the market, and protecting consumers against discrimination on the basis of disability. Many states also have laws that give the government the power to stop unfair practices and provide consumers with remedies if they have been wronged.

4. Protecting Your Rights as a Consumer There are several strategies that can help consumers avoid problems when buying a product or service. For example, when making purchases, consumers should compare several different brands and stores to make sure that they get the best deal. Consumers should also read the warranty to learn the company’s policy toward quality assurance, returns, and repairs.

5. A consumer unable to solve a problem by contacting the seller or manufacturer may seek the help of one of the federal or state consumer protection agencies. Better Business Bureau 30555 Southfield Road Southfield, MI 48076 (248) 644-9100 (248) 644-5026 FAX www.bbb.org www.bbb.org Committee on Consumer Protection Michigan House of Representatives P.O. Box 30014 Lansing, MI 48909 (517) 373-2577 (517) 373-5946 FAX Michigan Chamber of Commerce 600 South Walnut Street Lansing, MI 48933 (517) 371-2100 (517) 371-7224 FAX www.michamber.com www.michamber.com Michigan Consumer Federation 115 West Allegan Street Lansing, MI 48933 (517) 482-6262 Michigan Department of Attorney General 525 West Ottawa Street, Seventh Floor Lansing, MI 48913 (517) 373-1140 (517) 335-1935 FAX www.ag.state.mi.us www.ag.state.mi.us Michigan Department of Consumer and Industry Services 525 West Ottawa Street, Fourth Floor Lansing, MI 48913 (517) 373-1820 (517) 241-1580 FAX www.cis.state.mi.us www.cis.state.mi.us

6. Direct Action by Consumers Direct action is a strategy that gives consumers a voice to try and make an impact on a business’s practices. These actions may include writing letters, refusing to buy certain products or brand names, holding press conferences, or picketing.

7. Taking Your Case to Court If you cannot settle your complaint and a consumer agency is unable to help, legal action may be necessary. If the seller’s practices are a crime, the seller may be charged in criminal court. If the seller has not committed a crime but has caused a consumer financial or personal injury, the consumer may receive compensation through an action in civil court.

8. Cars and the Consumer An automobile is one of the most important purchases many people will make. Many legal issues are involved in buying, leasing, maintaining, and selling an automobile. Comparison shopping, contracts, warranties, and credit are important concepts related to automobiles.

9. When shopping for a car, you should consider at least six characteristics: Safety Price Quality Warranty Fuel Economy Insurance Costs It is not enough to only compare vehicles in terms of price. The car’s safety features, fuel economy, insurance costs, and dealer’s capability to make repairs should all be compared in the same manner as price.

10. Federal law now requires even used cars to show a “Buyer’s Guide” in the window of every vehicle. Most new-car buyers and many used-car buyers make their purchase on credit. Buyers may select the length of the repayment schedule – the longer the repayment period, the lower each monthly payment will be. However, the longer you are in debt, the more interest you end up paying. Interest rates are generally lower on new cars than used cars.

11. Car dealers, banks, credit unions, and finance companies all generally offer automobile financing. Rather than buy a car, a person may chose to lease one. Under a lease agreement, the consumer does not own the car, but instead pays a monthly fee to drive the car for a certain period of time. Sometimes the consumer chooses to purchase the car at the end of the lease. More often, though, the consumer returns the car to the leasing company. The lease agreement usually includes restrictions on mileage and wear and tear.

12. The leasing company imposes these restrictions because it wants to get the car back in a certain condition in order to re-sell or re-lease the vehicle to another consumer. Typically, monthly lease payments are lower than monthly finance payments. However, with leasing, you do not own the car at the end of the payment period. When budgeting to purchase a car, you must remember to consider the cost of fuel, repairs, license and registration fees, taxes, and auto insurance, in addition to the purchase or leasing price of the vehicle.

13. Housing and the Consumer Families that buy a home generally obtain a loan, called a mortgage, to help finance this large purchase. Due to the large expenses associated with buying a home, most young people choose to rent an apartment or house when they begin living on their own.

14. Leases: A Special Kind of Contract The relationship between the person who owns a property (landlord) and the person who pays to use the property (tenant) is created by a contract called a lease. The lease usually includes the date the tenant will move in, the amount of the rent, and the length of the lease. It is important to inspect a property thoroughly and read the lease carefully before signing a rental agreement.

15. Landlord-Tenant Negotiations Negotiating with a landlord about rent and lease terms may be hard, but this should not discourage you from trying. It is important to convince the landlord that you are a good tenant who can be trusted to pay the rent on time, prevent unnecessary damage to the property, and not be a disturbance to neighbors. The landlord, in turn, has certain obligations to you as a tenant, including to treat you fairly and take responsibility for major maintenance and repairs.

16. Homelessness: Is There a Right to Housing? Most experts agree that the leading cause of homelessness is a lack of affordable housing. Many people who need homes do not have enough money to rent or purchase one. Although the U.S. Constitution does not include a right to housing, some state constitutions have been interpreted to include such a right. Michigan is not such a state.