1. Rights, Responsibilities, and Resolutions
Consumer Protection
Rights, Responsibilities, and Resolutions
CONSUMER ALERT!!!
True/False
1. You can depend on the government to protect your consumer rights.
2. People who get “taken” by con artists deserve what they get and have no recourse.
When you are dissatisfied with a product, you should go straight to the top to get answers.
Consumer Alert: Dog door leads to childs death.
Badge: Spoof on consumer alert.

2. Consumer Bill of Rights
Consumer Bill of Rights: Consumer Responsibilities:
Right to Safety
Right to Choose
Right to Be Heard
Right to Consumer Education
Right to a Healthy Environment
Responsibility to Use Products Safely
Responsibility to Use Information
Responsibility to Express Satisfaction or Dissatisfaction
Responsibility to Seek Redress
Responsibility to Be an Educated Consumer
1962 JFK introduced 4 fundamental consumer rights, later other presidents added 3 more creating the consumer bill of rights.
Safety: Must not endanger lives or health.
Informed: Business must provide accurate information in ads, labeling, and sales.
Choose: Variety of goods. (Monopoly…Competition)
Heard: Government must consider consumer interests when creating laws.
Redress: (Receive Remedy) Obtain a fair remedy.
Education: Information should be available to make rational decisions.
Environment: Business should avoid polluting environment and contribute to the welfare of the community.
Safety: Consumers are responsible for following manufacturers instructions.
Informed: Consumers are responsible for using information provided.
Choose: Consumers take advantage of product variety.
Satisfaction: Consumers should report consumer issues.
Redress: Consumers need to inform business of product defects.
Education: Consumers should learn how to make rational buying decisions.
Environment: Consumers should support businesses that operate responsibly.

3. For ONE DAY only—SATURDAY DON’T MISS YOUR BIG CHANCE!!
If you saw this Advertisement …how would you evaluate the information provided?
COME TO
CARPETOWN’S
ONE-DAY
SALE!
For ONE DAY only—SATURDAY
You can carpet three
Rooms for only $799.
You choose the carpet.
We’ll install it free.
You won’t pay a penny
Until next year.
DON’T MISS YOUR BIG CHANCE!!
This store runs this promotion at least once a month.
Average room is 12x12….432 square feet.
The specified group of carpet has a price under $11.99 per square yard.
You don’t pay a penny year 1, but interest is accruing at 18%

4. The Rise of the Consumer Movement
AKA _____________
Seeking to protect and inform consumers by requiring such practices as honest advertising, product warranties, and improved safety standards.
1970 States enforced weights and measurement standards (buy a pound of corn should get a pound of corn)

5. Government Protection
Federal Trade Commission (FTC)
Cease-and-Desist Order
Consumer Product Safety Commission (CPSC)
Environmental Protection Agency (EPA)
State and Local Protection
Government protection has helped level the playing field.
FTC: (1914)….the most important federal consumer protection agency. Responsible for protecting consumers from unfair or deceptive business practices.
CD Order: Company to stop using an advertisement or will get a stiff fine.
CPSC: (1972) Protects consumers from dangerous products.
EPA: (1970) Protect the environment.

6. Warranties
Company’s promise that the product will meet specific standards over a given time period, or the company will repair or replace it, or give a refund.
Magnuson-Moss Warrant Act (1975)
_________ _Warranty
__________ Warranty
__________Warranty
MW Warranty Act: Specifies how a warranty must be written (not vague, etc.)
Full/Limited: Written
Implied: Unwritten that product will fulfill the expectation you bought it for.

7. Deception _____________Up Other Methods:
Practice of pressuring consumers to buy a more expensive product than they intended.
Other Methods:
Suggested Retail Price?
Sale Price?
Loss Leader
Item priced below cost to attract you to the store
….legal or illegal?
Difference between deception and fraud is a matter of degree (extreme and/or unlawful is fraud)
Trading up is not illegal.
Sales price is only on sale if the price is below the usual price.
MSRP….manufacturers suggested retail price.

8. Fraud
Deliberate deception, designed to secure unfair or unlawful gain.
According to law, it must meet these conditions:
The person who made the statement must know it is false.
The purpose of the statement must be to cause others to give up property that has value, such as money.
Pyramid Schemes
Telephone Fraud
Bait and Switch: advertising a nonexistent bargain and when consumer comes in switch them to a more expensive.
Pyramid: Personal stories.
Telephone: Catholic Credit Union messages and advertisements.

9. Consumer Resolution Write down the facts! The complaint process:
Start with the seller.
Contact the Better Business Bureau (BBB)
Truth in Information
Cooling-off Period
Specified period of time within which a consumer can back out of an agreement to buy something.
Using Small Claims Court