1. Consumer Rights

2. Objectives To discuss the Consumer Bill of Rights.
To demonstrate examples of the various consumer rights.
To examine the laws associated with consumers.

3. Main Menu
Consumer Bill of Rights
Consumer Law

4. Consumer Bill of Rights

5. Consumers
Are individuals who purchase goods or services for personal use
Are also referred to as customers
Have rights which are expressed in the Consumer Bill of Rights
Are protected by Consumer Protection Laws

6. Consumer Bill of Rights
Is a group of ideals which protects consumers against defective products, misleading advertising, etc.
Involves five major rights:
the right to be informed
the right to choose
the right to safety
the right to be heard
the right to consumer education

7. The Right to be Informed
Involves the consumer being given accurate information in order to make wise choices
Protects consumers from fraudulent advertising, mislabeling and misrepresentation
Involves companies providing accurate identification of the content of the product and any dangers associated with the product

8. Examples of the Right to be Informed
Cigarette and tobacco companies are required by law to place a surgeon’s general warning regarding health links on all packages of tobacco products
All packaged food must be labeled with the product’s nutritional values
Advertisements featuring alcohol must include the phrase “drink responsibly”

9. The Right to Choose
Allows the consumer to have access to a variety of products or services at reasonable prices
Ensures goods and services are offered in many different brands, sizes, shapes, colors and prices
Involves the government regulating:
patents
unfair price cuts
mergers

10. Examples of the Right to Choose
The company who created Velcro® held the patent and therefore they were the only company who produced Velcro® until the patent ran out and other companies could begin manufacturing Velcro® as well
Stores carry several brands of the same goods with varying prices
Wal-Mart® carries various brands of peanut butter such as Peter Pan®, JIF® and Great Value®

11. The Right to Safety
Enables consumers to be protected against injury or illness from hazardous products and services
Is the reason behind product testing and safety warnings
Is monitored by the Consumer Product Safety Commission
Requires established standards for performance, immediate notification of defects and product testing

12. Examples of the Right to Safety
Ford® issues a recall on a specific year model of a car due to a known problem such as a faulty seatbelt or tires
Government agencies such as the Food and Drug Administration (FDA) test products in order to ensure consumer safety

13. The Right to be Heard
Allows the consumer to make complaints to the business and government regarding products or services
Can be completed through consumer groups who issue complaints, suggestions and feedback to businesses
Enables the consumer to voice their opinion

14. Examples of the Right to be Heard
If a television is purchased from Best Buy® and it does not work, the consumer may return the item to Best Buy® or file a complaint to the television manufacturer
If a customer has a complaint about a product, they can consult the Consumer’s Resource Handbook at to obtain the location of a consumer agency or they can file a complaint online

15. How to File a Complaint Go to the local level first
return to the local dealer, explain your complaint and present proof of purchase
Write or call the company who manufactured the product
Contact the local Better Business Bureau (BBB)
to find the BBB in your area call or go to
If none of the previous methods are satisfactory, contact the appropriate government agency

16. The Right to Consumer Education
Enables a consumer to receive an understanding of the marketplace including the rights and responsibilities of all groups of society
Encourages consumers to learn the laws and regulations associated with goods and services in order to make informed decisions

17. Examples of the Right to Consumer Education
A consumer should be aware of all of the laws and regulations prior to the purchase of a vehicle in order to make the best choice
An individual who wishes to purchase an mp3 player should compare and contrast all of the choices, as well as information concerning the mp3 player prior to purchase

18. Consumer Law

19. Consumer Law
Is the area of public law regulating private law relationships between individual consumers and the businesses selling goods and services
Covers a wide range of topics such as product liability, privacy rights, unfair business practices, fraud, misrepresentation and other consumer and business interactions
Protects consumers from the dangers which can be found in a marketplace

20. Federal Agencies Which Protect Consumers
Include the following:
Consumer Product Safety Commission
Environmental Protection Agency
Equal Employment Opportunity Commission
Federal Communications Commission
Federal Trade Commission
Food and Drug Administration
Internal Revenue Service
Interstate Commerce Commission
Justice Department
National Labor Relations Board
Occupational Safety and Health Administration
Patent and Trademark Office

21. Fair Packaging & Labeling Act
Requires the manufacturer to truthfully label the ingredients and raw materials used in production
Calls for a label to include:
the name of the business
the location of the business, manufacturer, packer and distributor
the size, weight and contents of the package

22. Fair Packaging & Labeling Act
Example:
if you look on the back of a bag of Cheetos® you will find the nutrition facts, ingredients, location of the manufacturer and the Frito Lay® website

23. Product Liability Law
Governs the liability of manufacturers, wholesalers, distributors and vendors for damages caused by dangerous or defective products
Holds producers accountable for the products they make
Guards consumers from harmful products and holds the manufacturer of the product liable

24. Product Liability Law Example:
Dell® recalled several laptop batteries due to a technical glitch causing batteries to get extremely hot and possibly catch on fire
In the past, a batch of peanut butter has been recalled by manufactures due to contamination with salmonella

25. Fair Credit Reporting Act
Regulates the collection, spread and use of consumer credit information
Shields consumers from disclosure of inaccurate personal information held by reporting agencies
Establishes procedures for correcting mistakes or damages to a person’s credit record

26. Fair Credit Reporting Act
Example:
if Joe Smith receives a home loan to purchase a new house, the bank from which Joe received the loan cannot share his personal information with a home insurance company or any other individual or company
if Kate Jones pays her credit card bill on time every month, the credit card company cannot send false credit information which would damage her credit score

27. Privacy Act
Prohibits agencies from disclosing records to third parties or other individuals without the consent of the individual
Ensures an individual’s information will be kept confidential
Protects individuals from unlawful use of personal information by the government

28. Privacy Act
Example:
Mark files his taxes with help from Tim, his Certified Public Accountant; it is illegal for Tim to allow other individuals to view Mark’s records or to inform others of Mike’s tax filings
If you purchase an item online, it is illegal for the site to allow others to view your credit or debit card number as well as your shipping information

29. Telephone Consumer Protection Act
Was created due to consumer complaints against telemarketers
Requires any person or business engaging in telemarketing to maintain a “no call” list
Restricts the use of automatic dialing systems, artificial or prerecorded voice messages, SMS text messages received by cell phones and the use of fax machines to send unsolicited advertisements

30. Telephone Consumer Protection Act
Example:
a telemarketer from AT&T® calls Beth’s home wanting her to change telephone services, but Beth does not wish to be bothered with telemarketers so she requests to be placed on the company’s “no call” list as well as registers herself on the National Do Not Call Registry
if a telemarketer calls or uses an unapproved method of contact to communicate with an individual the company can be subjected to a state or federal trial as well as fines

31. Telecommunications Act
Regulates radio and television broadcasting, cable television, telephone services, Internet and online computer services and telecommunications equipment manufacturing
Abolishes many of the barriers which prohibit dominant players from one of the communication markets from competing in other types of communication markets
such as a cable company offering telephone and Internet service
Also regulates inappropriate content which may be viewed by minors

32. Children’s Online Privacy Protection Act (COPPA)
Applies to the online collection of personal information by persons or entities from children under 13 years of age
Requires websites and other online services directed at children obtain consent prior to the collection of personal information of children
Was designed to ensure a child’s ability to speak, seek out information and publish information

33. Children’s Online Privacy Protection Act (COPPA)
Example:
if you visit you will notice the privacy policy link which appears on the opening banner
the policy is present due to the fact the Lisa Frank company is largely marketed toward young girls and therefore would fall under COPPA
MySpace® requires individuals to be over 14 years of age in order to comply with COPPA regulations and protect younger children

34. Identity Theft & Assumption Deterrence Act
Provides the FTC the role of tracking identity theft complaints and referring complaints to the appropriate credit bureaus and law enforcement agencies
Helps repair victims damaged credit history due to identity theft
Was created to aid individuals afflicted by identity theft

35. Identity Theft & Assumption Deterrence Act
Example:
Susan receives a bill for $50,000 from a credit card company which she does not have a credit card with
the amount was charged last month from a resort in Hawaii and Susan has not left her home state of Oklahoma in the past year
instead of Susan having to pay the credit card company the large amount of money which she did not charge, she can claim identity theft and report the offense without damaging her credit

36. Copyright Act
Prevents the unauthorized copying of a work or authorship
Allows copyrights to be formally registered in the Copyright Office in the Library of Congress
Gives additional benefits to those registered with a copyright

37. Copyright Act Example Kevin wrote a research paper
under the copyright act the research paper is copyrighted even though he did not formally file a copyright
many famous paintings, such as the Mona Lisa, are copyrighted in order to prevent illegally copying the work for personal gain

38. U.S. Digital Millennium Copyright Act
States the copying of copyrighted music is illegal
Protects copyright owners from the unauthorized reproduction, adaptation or distribution of sound recordings or digital recordings to the public
If violated can result in up to ten years in prison and $250,000 in fines

39. U.S. Digital Millennium Copyright Act
Example:
thousands of individuals were required to pay fines associated with the illegal downloading of music in the late 90s and early 2000s
the WARNING which appears on the screen of every DVD or videogame purchased warns consumers not to copy the video or game

40. Consumers Have basic rights which must be fulfilled in the marketplace
Should be aware of the rights they possess
Must be knowledgeable of understand rights and laws
Can visit in order to obtain in-depth information over a variety of consumer safety topics

41. Resources
Consumer Bill of Rights. (2008). Retrieved September 30, 2008, from Answers.Com:
Federal Deposit Insurance Corporation. (n.d.). Retrieved September 30, 2008, from Federal Deposit Insurance Corporation:
Federal Trade Commission. (n.d.). Retrieved September 30, 2008 , from Federal Trade Commission:
WiredSafety.org. (n.d.). Retrieved September 30, 2008, from WiredSafety.org:

42. Resources
Family and Consumer Sciences. (n.d.). Retrieved September 30, 2008, from Family and Consumer Sciences:
Imperial College Union. (2008). Retrieved September 30, 2008, from Imperial College Union:
Larson., A. ( ). Expertlaw. Retrieved September 30, 2008, from ExpertLaw:
Tysver, D. A. ( ). Copyright Law in the United States . Retrieved September 30, 2008, from BitLaw:
Your Privacy Protection Under the Law. (2001). Retrieved September 30, 2008, from ConsumerPrivacyGuide.Org:

43. Acknowledgements Production Coordinator: Technical Writer:
Justin Jones
Technical Writer:
Jessica Odom
Project Coordinator:
Maggie Bigham
Production Manager:
Dusty Moore
Graphic Designer:
Ann Adams
Executive Producers:
Gordon Davis, Ph.D.
Jeff Lansdell
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