1. Consumers & The Economy

2. Economic Roles Consumer: Someone who uses goods and services. Worker: Producer of goods or provider of services Citizen: Votes, has rights of the country, pays taxes

3. The Consumer Movement What and why was there a consumer movement?  Growing consumer awareness of problems  Desire for greater protection

4. Basic Definitions Goods: Physical objects that are produced for consumers Services: Actions that are performed for someone Consumer advocates: Those that work for consumers

5. Books that made a difference The Jungle: Meat plants = Meat Inspection Act of 1906 Your Money’s Worth: Show misleading advertising affects Silent Spring: Showed pesticides affects = many environmental laws Unsafe at Any Speed: Defects in cars

6. Compare Rights with Responsibilities: With Rights come Responsibilities! 1. Safety 2. Be InformedBe Informed 3. Choose 4. Be Heard 5. Redress 6. Consumer Education 7. Service 1. Use products safely 2. Use information 3. Choose carefully 4. Speak up 5. Seek compensation 6. Learn 7. Reward good service

7. Consumer Protection Statutes Laws passed to protect you, the consumer Food, Drug & Cosmetic Act How drugs are dispensed List every ingredient on label Child Protection and Toy Safety Act Amendment to Federal Hazardous Substances Act Toys must be safe

8. Protection Acts Continued Equal Credit Opportunity Act Equal chance at credit Fair Packaging & Labeling Act Enable consumer to obtain quantity of contents Not lie about how product works Consumer Credit Protection Act Garnishment rules Cannot be fired because of bad credit

9. Better Business Bureau Non-profit business handles more customer complaints than all other agencies Easily accessible, everywhere 616-774-8236 Encourages honest business practices Informs consumer about integrity of businesses

10. Private Sources of Consumer Protection This services provide difficult-to-obtain information: CU: Consumers Union of the U.S., Inc.- Publishes tests & ratings of products in CONSUMER REPORTS - Has world’s largest testing lab! - Independent part of the government

11. Government Agencies USDA – US Department of Agriculture Supports rural development, food safety, nutrition and research In charge of national land and reduce hunger CPSC – Consumer Product Safety Commission Created 1972 to protect “against unreasonable risks of injuries associated with consumer products

12. Government Agencies Continued. FTC – Federal Trade Commission Regulate national advertising Try to preserve competition FDA – Food and Drug Administration FDA Safety and effectiveness of all drugs, biologics, vaccines, and medical devices SEC – Securities & Exchange Commission Promote full disclosure and protect investors

13. More Government Agencies OCA – Office of Consumer Affairs Protect against fraudulent, deceptive, and illegal practices EPA – Environmental Protection Agency Enforces environmental laws and provides information ? Others ?

14. Recalls recalls.gov Find information about all recalls HW: Find 10 items in your home to check Your car needs to be 1, no more then 2 cars checked

15. Letter of Redress

16. Writing a Letter of Redress (obtaining restitution) First try and resolve issues in person or over the phone. If attempt fails, WRITE! Important: Keep copies of letter sent Send COPIES, not originals of documentation (receipts, cancelled checks, contracts, etc. Send letter certified mail, return receipt requested

17. Elements of a Complaint Letter Salutation (greeting) Address your letter to the appropriate person, at the right level Opening (1 st paragraph) Identify the product & problem clearly Give date & place of purchase, model number, and the price. Body (2 nd paragraph) Explain steps you have taken and how you want the issue resolved, politely

18. Elements continued… Close (3 rd and last paragraph) Set a time for resolution to occur before you will seek other assistance. Include a way for you to be contacted: Phone Email Your Letter of Redress due tomorrow

19. Review Wednesday & Thursday Think of something that has gone wrong Write a letter of Redress Look up recalls