1. Financial Protections and Risk Management
Essential Questions How do consumer protection laws and government regulation contribute to the empowerment of the individual? What strategies can consumers use to resolve conflict?

2. Consumer Protection
There are a variety of ways the government tries to protect consumers’ finances.
The Federal Trade Commission – created in 1914 to prevent businesses from limiting competition.
Since then, the FTC has expanded its role to also directly protecting consumers by prosecuting businesses for unfair or deceptive practices.

3. Consumer Protection
The FTC’s Bureau of Consumer Protection assists consumers with identity theft issues, getting credit and loans, equal opportunities in jobs and education.

4. Consumer Protection
Federal Communications Commission (FCC): determines content that can be shown/aired on TV and radio.
Prevents businesses from intentionally lying in advertisements.
NC Department of Justice: State agency in charge of protecting consumers and regulating businesses in NC.

5. Consumer Protection
Consumer Product Safety Commission (CPSC): Tasked with creating and enforcing policies for safe products other than food, pharmaceuticals, alcohol, and guns.
The CPSC can issue a recall (all products returned and removed from store shelves) for products deemed to be unsafe for consumers.
The Food and Drug Administration (FDA): Provides the same regulations as the CPSC but for food, pharmaceuticals, and cosmetics.
The FDA also funds testing of new drugs before they are allowed to be sold.

6. Labor Disputes
The government works to settle/prevent disputes between workers and businesses
U.S. Equal Employment Opportunity Commission (EEOC) -responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee

7. Resolving Consumer Conflict
What can you do if you think a business has treated you unfairly?
Contact the Attorney General’s Office -
Offers many services to consumers throughout the state
Filing a claim against the business – sue them and settle the issue in court
Contact the Better Business Bureau -
Offer accreditations to businesses; consumers can file complaints and write poor reviews for deceptive companies

8. Fraudulent Business Practices
Identity Theft – using another person’s private identifying information for financial gain
Example – Opening an account in someone else’s name; if the bill doesn’t get paid it can negatively impact an individual’s credit history
Personal Information Disclosure – if a business requests information about consumers, there are laws regarding the handling of the information
Data collected must have a stated purpose and cannot be given to a third party
Records on customers must be up to date and accurate or discarded
Consumers should have access to the information about them to check its accuracy
Some things can’t be asked – sexual orientation, religion, etc.

9. Fraudulent Business Practices
Online Scams: someone online offers you something you want for money – often sounds too good to be true, because it definitely is.
Examples of online scams -
The Nigerian Prince
The Perfect Girlfriend
Craigslist Fake
Phishing Scams through both and text
Winning sweepstakes that you never entered
Work at Home Scams

10. Investment Scams
Ponzi Scheme/Pyramid Scheme – later investors pay for returns on investments for original investors
Investment Scams – encourage people to invest in a business that may not be a legitimate business so investors lose their money immediately

11. Consumer Self-Protection
Do Not Call List - The National Do Not Call Registry gives you a choice about whether to receive telemarketing calls at home. Most telemarketers should not call your number once it has been on the registry for 31 days. If they do, you can file a complaint.
Reading the Fine Print – Whenever agreeing to the terms and conditions on any “contract”, you must read the fine print and the terms and conditions. Many people get into a situation they could have avoided if they had only read what they were signing up for.
Example – free trials that eventually charge the consumer without notification

12. Consumer Self-Protection
Investment Protections Act - A component of the Wall Street Reform and Consumer Protection Act of 2009 designed to expand the powers of the Securities and Exchange Commission (SEC). The act established a whistleblower reward for reporting financial fraud, increased liability for aiding and abetting, doubled funding to the SEC over a five-year period, and more. The act was part of regulators' attempt to prevent some of the problems that caused the financial crisis of from reoccuring in the future.

13. Insurance Definitions
Insurance Agent
Person who sells and manages insurance policies
Claim
A demand made by the insured for payment of the benefits as provided by the policy
Deductible
Amount of money that the insured pays before the insurance kicks in

14. Types Insurance Health Insurance Life Insurance
Doctor and hospital visits, prescription drugs, rehabilitation, etc.
Life Insurance
Pays money to a beneficiary upon the death of the insured
Homeowner/Renter Insurance
Provides money for personal property and structural damage in the event of damage or theft

15. Types of Insurance Automotive Insurance Requirements
North Carolina requires that ALL drivers have liability insurance. This coverage helps pay for injuries and damages from a car accident for which you are at fault.
The minimum liability coverage limits are:
$30,000 for bodily injury liability, per person per accident.
$60,000 of bodily injury liability total per accident.
$25,000 of property damage liability, per accident.
You are also required to have uninsured motorist coverage. This helps pay for your own accident-related injuries when the collision occurred with an uninsured driver.

16. Other Types of Insurance
Liability – protects the policy holder if they are responsible for another person’s financial loses
Example – Doctors, Teachers, Drivers, etc.
Travel –intended to cover medical expenses, trip cancellation, lost luggage, flight accident and other losses incurred while traveling, either internationally or within one's own country
Disability – protects the policy holder if they become disabled and can no longer work (can be temporary)
Example – getting injured on the job
Long-term Care – covers costs of medical care that are not typically covered by health insurance plans
Natural Disaster – covers property damage from natural disasters if the homeowner’s policy doesn’t cover the damage