1. Consumer Rights and Responsibilities

2. Consumer Bill of Rights/Responsibilities
Right to…
Safety
Be Informed
Choose
Be Heard
Redress
Consumer Education
A Healthy Environment
Responsibilities to…
Use Products Safely
Use Information
Choose Carefully
Express Satisfaction/Dissatisfaction
Seek Redress
Be an Educated Consumer
Contribute to a Healthy Environment

3. Rights… Right to Choose…. Redress- seek and receive a remedy
Competition- a contest among sellers to win customers
Helps keep prices reasonable
Monopoly- one company has an unfair advantage over competitors (Ex. Gas, Electric)
Redress- seek and receive a remedy

4. Government Protection
Federal Trade Commission (FTC)
Most important federal consumer protection
Protecting from unfair or deceptive practices
Ex. You saw a TV that looked about 35” and it was a flat screen…when you received it, it was only about 20” and not a flat screen…you could file a complaint with the FTC.
FTC can issue a “cease-and-desist order”…The company would have to stop using the advertisement.

5. Government Protection
Consumer Product Safety Commission (CPSC)
Protect from dangerous products
Was the 1st with power over all consumer products
Sets safety standards
Ban those it considers dangerous

6. Government Protection
Environmental Protection Agency (EPA)
Enforce laws that protect our environment
Makes sure businesses dispose of hazardous waste produced during manufacturing
Sets standards for air and water quality
Business may have to up their prices due to the cost of adding special equipment

7. State and Local Protection
Protect consumers in local situations
Some state standards are stricter than federal.
Enforce health and sanitation standards
Example…may limit the amount of watering done in yards if there hasn’t been a lot of rain or no burning until certain times.

8. Warranties
Warranty: company’s promise that the product will meet specific standards over a given time period
Magnuson-Moss Warranty Act: it specifies how a warranty must be written (if there is a warranty)
Express Warranties:
Full Warranty: very specific, written guarantee
Limited Warranty: written warranty with specified limitations that doesn’t meet the standards of a full warranty

9. Warranties continued…
Implied Warranty: unwritten guarantee that the product is of sufficient quality to do what it is supposed to do
Service Contracts (extended warranties): separately purchased agreement

10. Resolve Consumer Problems
Why do consumers complain?
Tell me some reasons…
Fraud: dishonest business practices
Resolve the Problem
Facts need to be straight
Documentation (receipt & warranty)
Write down the facts on a sheet of paper
Names of people you talk to, dates of attempted repairs, copies of letters you write, any fees

11. Resolving Complaints Ask to speak with the manager
Return to the Place of Purchase (Store Clerk)
Make sure to bring receipts, etc.
Keep calm, avoid yelling
Ask to speak with the manager
Restate your case
Give important information
Contact Company Headquarters
Send a complaint letter

12. Resolving Complaints Consumer Agency Assistance Legal Action
National & local organizations
Better Business Bureau (BBB)
Government agencies
FDA, CPSC
Legal Action
Small Claims Court
Deals with legal disputes that involve amounts below a certain limit (varies from state to state)
Judge has final decision
Class Action Suit
Legal action on behalf of all the people who have suffered the same injustice

13. Other Options Lawyers can be VERY expensive…. You may seek help from…
Legal Aid Society- network of community law offices that provide free or low-cost legal assistance
Legal Clinic is another option if the others don’t work out.