1. Ch. 26 Becoming a Smart Consumer

2. Federal Consumer Protection
How do federal laws protect consumers?
At one time the burden was put on consumers.
Now the government protects consumers in 5 different ways.

3. 1. Prohibit Unfair Practices
What are some unfair practices?
False Advertising
Unfair Pricing
Mislabeling

4. Types of Advertising
Informative- only tells things about their particular product (most common)
Competitive – compares their brand with another brand
Deceptive – misleads consumer using false statements (not always illegal)

5. Ads Appeal to our Emotions
Teenagers #1 target of advertisers!
Ads made to ASSOCIATE with some image, person .. Perfume ads
Everyone is buying this … Bandwagon Approach
Famous person… Celebrity Appeal
Claims of Authority…medicines
Seeing is Believing…infomercials
Appeal to Senses… food advertisements

6. Commericals – What Are they Appealing To?

7. 2. Set Standards New standards for sellers in areas of:
Quality
Safety
Reliability
Failure to meet these standards results in legal action.

8. 3. Establish Agencies Federal Trade Commission (FTC)
Food and Drug Administration (FDA)
U.S. Department of Agriculture
U.S. Office of Consumer Affairs
National Highway Traffic Safety Administration
Consumer Product Safety Commission

9. 4. Pass Laws and Issue Rules
Congress passes laws, agencies issue rules.
Ex. Nutrition Labeling and Education Act

10. 5. Protect Against Discrimination
Americans With Disabilities Act
Protects against discrimination on basis of disabilities.
What are some requirements of businesses because of ADA.

11. State and Local Consumer Protection
Similar to federal protection
Not only passes laws to prohibit unfair business practices
Where can consumers take their complaints?

12. Consumer Rights in Court
State can sue a company on behalf of consumers.
Consumers my bring class action lawsuits to state court.
Provides remedies for consumers.
Cease and Desist Orders
Decrees
Restitution

13. Small Claims Court Reform court for minor cases.
Typical civil court was too slow, expensive, and complicated for minor cases.
What type of cases would go to a small claims court?