Consumer Issues Chapter 28

Objectives Explain 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.

Key Terms Consumer Redress Small claims court Identity theft Fraud Pyramid scheme Chain letter Return policy Shoplifting

Role as a Consumer Consumer – someone who buys and sues products and services. Through your buying decisions you are determining what goods and services are being offered.

Influences 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.

Consumer Rights and Responsibilities Right to safety Right to be informed Right to choose Right to be heard Right to redress Right to consumer education Right to service Responsibility to use products safely Responsibility to use information Responsibility to choose carefully Responsibility to speak up Responsibility to seek redress Responsibility to learn Responsibility to reward good service

Activity You 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.

Sources of Consumer Information Government Agencies Consumer Organizations Media Sources Advertising Packaging Salespeople Research Studies Other Consumers

Evaluating Information Consider the Source Look for signs of bias Distinguish between opinion and fact When in doubt, check it out

Activity What source would you use to get information about the following: Comparison on different brands of a product. Example: cell phone Quality of care provided by a local physician. Nutrients in a food product. Prices in a clothing sale.

Making a Complaint In person – have item, receipt and other information handy By phone – same as above In writing – when either going in person or by phone, write a letter to the company. Be detailed, and polite and state the problem.

Taking Further Action Business Groups – BBB Government Agencies – listed in the phone book Legal Action – Small claims court

Identity 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 behind Steal personal information from internet. Steal records from business. Pose as a representative of a bank or government agency.

Identity Theft What you can do. Don’t give out your Social Security Number Don’t give personal information over the phone, e-mail. When you need to give secure information over the internet, make sure the website is secure Tear up or shred financial documents Change computer or online passwords frequently Keep items with personal information locked away Make sure no one is watching when using an ATM

Guarding Against Fraud Telemarketing Fraud Pyramid Schemes and Chain Letters Pyramid Scheme is a get-rich-quick plan. Never work because they cannot sustain large amounts of participants. Chain letters – an email or mail message that encourages people to send copies of the letter to a certain amount of others along with money. Internet Fraud Uses internet to conduct fraudulent transactions.

Activity What damage can a person suffer from identity theft?

Taking Action Individuals 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.

Acting Responsibly You 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.

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