Chapter 3 Consumer Protection

Know Your Consumer Rights

Consumer Rights and Responsibilities , John F. Kennedy Consumer Right = Consumer Responsibility Right to Safety = Right to Safety Right to be Informed = Right to be Informed Right to Choose = Right to Be Heard = Right to Be Heard Right to Redress = Right to Redress Right to Consumer = Education Right to Consumer = Education Right to a Healthy = Environment Right to a Healthy = Environment Use Products Safely Use Information Choose Carefully Express Satisfaction/ Dissatisfaction Seek Redress Be an Educated Consumer Contribute to a Healthy Environment

Consumerism

Government and Consumer Protection 3.2 Governmental Organizations These organizations were set up by the government to protect consumers FTC CPSC EPA USDA NHTSA BBB (not a govt. agency) BBB State Attorney General US Post Office Warranties Companies promise that the product will meet specific standards, or they will repair, replace, or refund (Magnuson-Moss Warranty Act) Full Warranty Limited Warranty Implied Warranty

Math Activity 3 – Saving Energy & Money

Formulas to determine if saving energy is saving you money. Simple Payback – the number of years it takes for the annual savings in energy cost to equal the additional purchase cost of the energy-efficient model. Simple Payback = Additional purchase price / annual savings in energy cost Ex: The energy-efficient item costs $50 more than the non energy-efficient item but will save you $26 in energy costs a year, so the simple payback is: $50 / $26 = 1.9 years That means it will take you about 2 years of savings to pay off the difference but every year you use the item after that is a savings of $26.

Formulas to determine if saving energy is saving you money. Net Savings – The amount you save during the entire life of the product, minus the additional purchase cost Net Savings = Annual energy cost saving X expected life of the product – additional purchase price EX: You will save $26 a year for the 11 years you expect to use the item, but it cost an additional $50 for that item $26 X 11years - $50 = $236 net savings Over the life of the item you will save a total of $236 for spending $50 now.

Formulas to determine if saving energy is saving you money. Rate of Return – The percentage of savings in energy cost. Rate of Return = annual energy cost savings / additional purchase cost EX: You will save $26 a year but had to spend $50 to do that. What is your rate of return? $26 / $50 = 0.52 or 52%

Math Activity 4 – Entrepreneurship and Profit

How to find Profit Revenue – The money collected from customers by a business Expenses – The money businesses spend to stay in business (materials, payroll, taxes, rent, etc.) Net Profit – The difference between what a business collected and what the business spent. Net Profit = Revenue - Expenses Ex: A business collected a total of $8,000 for the month is sales and after adding up all of its expenses came up with a total of $5500, its net profit would be: $8,000 - $5,500 = $2,500 for the month If the business made that same profit for the quarter, they would have made: $2,500 X 3months = $7,500

Reading a Table MonthIncomeExpensesProfit January$345,876$222,987 February$275,900$150,009 March$399,325$290,900 April$419,976$270,356 May$334,654$190,703 Figuring and Comparing Profit

Computing Quantities We know there are 12 months in a year and 365 days in a year. How many months in 15 years? 15 years X 12 months = 180 months How many days in 15 years? 15 years X 365 days = 5,475 days How many years in 3,500 days? 3,500 days / 365 days per year = 9.6 years How many months in 3,500 days? 9.6 years X 12 months per year = months

Going Out of Business Sale or Scam?

Deception and Fraud 3.3 Legalbut Deceptive Trading Up Sale Price Suggested Retail Price Loss Leader Illegal and Fraudulent Bait and Switch Pyramid Schemes Telephone Fraud Protect yourself from deception and fraud by being an alert consumer.

How to Complain

Resolve Consumer Problems 3.4 Resolve the Problem The Complaint Process Government Involvement to Help Consumers