1. Chapter 4, Section 2 Consumer Complaints
Personal Finance
Chapter 4, Section 2
Consumer Complaints

2. Question Have you ever been involved in a consumer complaint?
What happened?

3. Objective
Identify ways to solve consumer complaints

4. Sources of Consumer Complaints
Fraud: dishonest business practices that are meant to deceive, trick, or gain an unfair advantage
Common Types:
Telephone and mail scams
Work at home schemes

5. Resolving Complaints 1. Return to the place of purchase
2. Contact Company headquarters
3. Help from a consumer agency: BBB
4. Dispute Resolution:
Mediation: neutral 3rd party resolves the conflict. Not legally binding
Arbitration: 3rd party, legally binding
5. Take Legal Action

6. Small Claims Court
Small Claims Court: Deals with legal disputes that involve amounts of money below a certain limit
State-State: $500-$10,000
No jury or lawyers

7. Class Action
Legal action on behalf of all the people who have suffered the same injustice
Money is divided if they win

8. Legal Aid Society
One of a network of community law offices that provides free or low-cost legal assistance

9. Consumer Safety Commission
Commission that helps protect consumers against unsafe products
Should be contacted to find local dispute resolution programs

10. Math Problem
500 people from Utah participated in a class action lawsuit against the phone company. The judge awarded $1.5 million to be divided equally among the participants.
How much did each person receive?
What was the percentage of each individual’s award? $1,500,000/500 = $3,000; $3000/$1,500,000 = .2%

11. Group Assignment Groups of 2
Look up consumer complaints on the computers
Find an interesting case and write a short report about the case