1. CH. 3.3 & 3.4

2.  DECEPTION: when advertising purposefully misleads you  FRAUD: deliberate deception, designed to secure an unlawful gain  Who is this guy 

3.  Trading up: The practice of pressuring consumers to buy a more expensive product EX: you go to Best Buy to purchase a DVD player, and the salesman gets you to buy a better brand with more functions  Loss Leader: The practice of raising the normal price, and then lowering it in order to call it a “sale” EX: Finish Line raises a pair of Jordan’s to $120, that is normally $100, then puts them back to $100 and calls it a sale

4.  Sale price: A sale is a sale only if the price is below the regular price.  Can be deceptive: if the store raises the price for a day or two then lowers it and calls it a sale  Suggested Retail price: A manufacturer’s suggested price is usually higher than any retailer expects to actually get for a product.  Ex: Cars!

5.  Bait and Switch: The practice of baiting consumers with an advertised, but nonexistent bargain and then switching them to a more expensive product.  My example at office depot – shredder –  Pyramid Schemes: A type of financial fraud in which people pay to join an organization in exchange for the right to sell memberships to others Pyramid scheme

6.  Internet and Telephone fraud: The many different methods of scheming people out of money over the phone http://www.youtube.com/watch?feature=player_emb edded&v=G3p79-M0lHY.com Some things to look out for when an offer is made to you online or over the phone: 1. Too good to be true www.lookstoogoodtobetrue.govwww.lookstoogoodtobetrue.gov 2. Asked for your social security card or credit card number 3. Must buy something to get something else of greater value for free

7. 1. Not offered a written contract or sales agreement 2. You are supposed to act immediately or the offer will expire quickly 3. No method is offered to contact the organization 4. No information about the organization’s business record is available

8.  Here are some scenarios that should bring out the skeptic in you: 1. Healthcare products that promise to cure incurable diseases HEALTHY CEREAL? 2. Home-improvement contractors who want you to pay most of the cost before they do the work Holmes on homes

9. 1. Vacation clubs that require you to send money to join with the promise of inexpensive 1 st class vacations later 2. Repair work offered at well below the going rate 3. Weight-loss programs that promise unrealistic results.

10.  Lets talk about any scams that you have encountered… or your parents. Were they similar to these? How were they resolved? How about internet fraud? Have any of you tried to deceive anyone…  we are all friends here…

11. http://www.cbsnews.com/video/watch/?id=73 98476n

12.  Follow the money Follow the money

13.  Read the “ID Thieves’ New Tricks: Cybercriminals are getting smart. You can too” packet and be prepared to discuss it.

14.  Re-Read pages 108-112  Write the 1 page complaint letter

15.  HOW TO RESOLVE THE PROBLEM  Wait approximately 3 days to ‘cool down’  Use facts, no emotions, to solve the problem  Keep your receipt!  Decide what you want before you complain

16.  THE COMPLAINT PROCESS  Take it slow  Start with the Seller Go to the store Talk to the manager  Email / write the manufacturer  Contact a consumer group or professional organization  Media help Check online, sometimes there is a way to resolve problems through the website

17.  Government Involvement Lawsuit You may contact a lawyer and take the claim to court Small Claims court  Different states have different maximums ($1000- $10,000)  You do not need a lawyer for this court  If you lose, you have to pay the fees of the person you are suing