2ObjectivesExplain the role, rights, and responsibilities of consumers.Evaluate sources of consumer information.Outline the process of making a consumer complaint.Identify ways to protect your privacy and prevent identity theft.Describe common types of consumer fraud.Give guidelines for being a responsible, considerate consumer.
4Role as a ConsumerConsumer – someone who buys and sues products and services.Through your buying decisions you are determining what goods and services are being offered.
5Influences on Consumer Spending What are your wants and needs?How does family, friends, and advertising shape how you spend your money?Other influences could be cultural, and society.Redress – seek legal remedy when laws are violated.
6Consumer Rights and Responsibilities Right to safetyRight to be informedRight to chooseRight to be heardRight to redressRight to consumer educationRight to serviceResponsibility to use products safelyResponsibility to use informationResponsibility to choose carefullyResponsibility to speak upResponsibility to seek redressResponsibility to learnResponsibility to reward good service
7ActivityYou bring back a calculator that doesn’t work when you take it home.A supermarket discards food that has passed its expiration date.A city inspector makes sure that a gas station’s pumps accurately count the number of gallons pumped out.
8Sources of Consumer Information Government AgenciesConsumer OrganizationsMedia SourcesAdvertisingPackagingSalespeopleResearch StudiesOther Consumers
9Evaluating Information Consider the SourceLook for signs of biasDistinguish between opinion and factWhen in doubt, check it out
10ActivityWhat source would you use to get information about the following:Comparison on different brands of a product. Example: cell phoneQuality of care provided by a local physician.Nutrients in a food product.Prices in a clothing sale.
11Making a ComplaintIn person – have item, receipt and other information handyBy phone – same as aboveIn writing – when either going in person or by phone, write a letter to the company. Be detailed, and polite and state the problem.
12Taking Further Action Business Groups – BBB Government Agencies – listed in the phone bookLegal Action – Small claims court
13Identity Theft How does it happen? Steal your wallet or purse. Steal your mail.Complete a change of address form.Retrieve discarded papers from trash.Watch over your shoulder.Obtain information from receipts that you leave behindSteal personal information from internet.Steal records from business.Pose as a representative of a bank or government agency.
14Identity Theft What you can do. Don’t give out your Social Security NumberDon’t give personal information over the phone, .When you need to give secure information over the internet, make sure the website is secureTear up or shred financial documentsChange computer or online passwords frequentlyKeep items with personal information locked awayMake sure no one is watching when using an ATM
15Guarding Against Fraud Telemarketing FraudPyramid Schemes and Chain LettersPyramid Scheme is a get-rich-quick plan. Never work because they cannot sustain large amounts of participants.Chain letters – an or mail message that encourages people to send copies of the letter to a certain amount of others along with money.Internet FraudUses internet to conduct fraudulent transactions.
16ActivityWhat damage can a person suffer from identity theft?
17Taking ActionIndividuals or business that will not reveal their location.Insistence that payment be made before information can be sent out.High-pressure offers that are “good for today only.”Any offers that seem too good to be true.
18Acting ResponsiblyYou would expect a business to act fairly and honestly towards you, you should act fairly and honestly towards businesses.Be considerate to those around you, including employees. If there is a problem, speak with the manager.Return Policy – rules for returning merchandise.Shoplifting – theft of merchandise from a store by shoppers.