1. Consumer Rights & Responsibilities
Chapter 15
Consumer Rights & Responsibilities

2. Warm-Up
What do you think you have the right to expect from the products you buy and the companies that sell them to you?
What responsibilities do you have in return?
Lesson Plan, Day 1
Have students answer the warm-up activity on a separate sheet of paper. Take attendance while they are writing their response.
Discuss their answers…talk about labeling. Discuss how the imported Toys from China were recalled. Ask if anyone knows what that was about? (Lead paint) How does that affect consumers? How does it affect business? Is the government involved enough in issues such as this? Is the government involved too much?
Talk about consumer’s responsibility (read labels, use product for their intended use, seek out information about purchases before you buy, etc)
Read the funny labels
Hand out the chapter 15 study guide

3. Information Sources for Consumers
Product Testing Organizations
Test products for benefit of consumer and business
Media Sources
Print
Broadcast
Internet
Manufacturers pay organizations to perform safety tests on products – think about cars
Different manufacturers have different types of product testing organizations
Consumer unions reports scientific, technical, and educational information about products and services – these are unbiased tests and are reported in the Consumer Reports magazine
We are constantly surrounded by media – TV, Radio, Newspaper, and the Internet. These can be good sources for information about products. There are also specialty magazines for specific types of products or services. Good Housekeeping always has articles on different ways to solve a consumer problem for example. You will need to be careful when using the Internet, make sure you are using reliable sources.

4. Information Sources for Consumers
Government Agencies
Federal, State, Local Agencies available
Business Sources
Advertising
Labels
Customer Service Departments
Better Business Bureau
Personal Contacts
Friends
Family
Co-workers
Federal, state, and local governments also inform consumers. Every state has consumer protection agencies which provide information and handle consumer questions
Business provides information through many sources…advertising will inform you about its products, the product labels tells you the ingredients in the product, most companies have a customer service department in which to field questions by customers
And there is an agency – the Better Business Bureau (BBB) that takes complaints against companies and keeps files on that company. They let the business know that there is a complaint and try to persuade the company to remedy the situation.
Sometimes the best information you can get when making a decision is to ask someone who has already had experience with that type of product/service/decision.

5. Information Sources for Consumers
Consumer Reports
#1 magazine that reports the strengths and weaknesses of many different brands of products

6. Federal Agencies United States Department of Agriculture (USDA)
Inspects and grades meat and other food
The USDA offers publications and online information about food buying, meal planning and nutrition

7. Federal Agencies Federal Trade Commission (FTC):
protects consumers from unfair business practices
The FTC has a lot of information for consumers to empower themselves to make wise decisions.
Show students the FTC Web page

8. Federal Agencies Food and Drug Administration (FDA)
Ensures that foods are safe, wholesome and sanitary
Human and veterinary drugs
Biological products (blood), and medical devices are safe and effective
Cosmetics are safe
Electronic products that emit radiation are safe
The FDA sets regulations and standards for foods, prescription drugs, blood products, cosmetics, etc. They do not regulate all over-the-counter drugs, however if there seems to be a specific harmful effect, they will begin to investigate and they will ensure that labels are proper and factual

9. Federal Agencies Consumer Product Safety Commission (CPSC):
Protects consumers from dangerous products
They have the power over all consumer products; Set safety standards for any consumer products, They also ban products that are hazardous
The CPSC collects data from hospital emergency rooms.
They are in charge of requiring companies to recall products.

10. Federal Agencies Environmental Protection Agency (EPA):
Enforce laws that protect the environment
This agency protects the environment, enforce businesses to safely dispose of hazardous waste and regulate air and water quality
We also have the protection of state and local government. (Remember the ad article, the Illinois Attorney General handled this)
Assignment: Hand out the chapter 15 decision making worksheet. Have students complete individually. When they are finished have them turn it in.

11. Advertising
Any type of paid communication by a business about a product, service, or company
Discuss that advertising can be very informative and is a popular source of consumer information – it can reach millions of people at once
Have students tell of their favorite and least favorite commercials.
Activity (for fun): Pass out the slogan worksheet. See how many students can identify the product or company. Student with the most will win a prize (candy)

12. Types of Ads Persuasive Advertising
The most common type of advertising – to appeal to your emotions to influence you to buy the product or service
Companies use emotions to help sell products…they will play on fear, happiness, or heart-felt emotion. Ask for examples of persuasive ads

13. Types of Advertising Comparison Advertising Informative Advertising
offers comparisons of other products to learn what the advertiser considers the best quality
Informative Advertising
designed to influence you to buy a product by educating you
Have students give examples of both types of ads they have observed
Assignment: Ad creation – see handout

14. Warm-Up
What is your favorite advertisement. What makes you like it? Does this ad influence you to buy the product or go to that company?

15. Types of Advertising Deceptive Advertising Puffery
Deliberately designed to mislead you
If an ad contains wrong facts or statements these are deceptive and illegal
Puffery
legal exaggeration
Example our product is better
If an ad is considered deceptive the company must pull it immediately. The FTC will issue a cease and desist order which requires the company to stop the ad.
Ask for examples of puffery (Papa John’s – better ingredients, better pizza)
Hand out the Ad Activity. Go through the next three slides and then have students do their own ads. They can work with a partner. Give about 30 minutes for this activity.

16. Advertising Activity Example
Puffery:
The most refreshing thirst-satisfying drink
The One the Only Diet Coke
Informative
Diet Coke does not add anything to it’s soda, except great taste.
It has zero calories, zero carbs, zero fat, and only 40 mg of sodium. All the great flavor without anything else; The one, the only Diet Coke.

17. Advertising Activity Example
Persuasive:
Want to fit into those “skinny jeans?” Switch from Coke to Diet Coke
For zero calories but all the flavor, it will have you in those jeans in no time.

18. Advertising Activity Example
Comparison:
Diet Coke vs Diet Pepsi
Only one has the most flavor
With no after taste
The One, the only, Diet Coke

19. Comparison Shopping Compare Pricing Unit Price
Price per unit of measure
Example: if a 16 ounce bag of one bag of frozen corn is $1.26 and an 8 ounce box of another brand is $0.69, which is the better buy?
1.26 ÷ 16 = or 7.9 cents
0.69 ÷ 8 = or 8.6 cents
Comparing pricing is not the only thing. You will need to compare quality and features as well.

20. Comparison Shopping Brand
Name given to a product or service to distinguish it from other similar and competitive items
Brand names help build customer loyalty – national brands are advertised all over the country and sold in almost every community

21. Not so Wise Buying Impulse Buying Purchasing on a whim
Buying too quickly
Note that most impulse purchases are done at the check-out counter

22. Warm-Up
Why do you think most business people like to have well informed customers?
When would you consider an impulse purchase a harmless activity?
Have students answer these on a separate sheet of paper
Discuss: Well-informed customers have realistic expectations and understand their own responsibilities in the purchasing transaction. Most well-informed customers become repeat customer when the have a satisfying experience
When you buy things that don’t cost too much…
Activity: Advertising Activity – hand out the advertising activity rubric; go over the directions; allow students to work with a partner;
Show the example

23. Government/Consumer Protection
Consumerism: The Consumer Movement
seeks to protect & inform consumers by requiring honest ads, warranties and safety standards
What if our government had no consumer protections agencies? What powers could this give to business? Would you have any individual protection? (maybe if there continued to be competition)
Ask if anyone knows when the consumer bill of rights were established? (1962) and by which president? (John F. Kennedy – declared the first four rights – safety, informed, choose, heard); Richard Nixon added the 5th consumer right (remedy) in 1969; and Gerald Ford added the 6th right Consumer Education in 1975
(right # 7 is currently under investigation – one source says right to a healthy environment and one source says right to service).

24. Consumer Bill of Rights
Right to be Informed:
businesses must give accurate information
Responsibility for Right to be Informed:
Use information to choose a product

25. Consumer Bill of Rights
Right to Safety:
Products can’t hurt consumer’s lives or health
Responsibility for Right to Safety:
Use products safely
follow directions for use
Review Consumer Bill of Rights/Responsibilities

26. Consumer Bill of Rights
Right to Choose:
Business should give a variety
Responsibility to Right to Choose:
Choose carefully
Use the rational decision making process
There should be a variety of available products and competition (What is competition) – No Monopolies

27. Consumer Bill of Rights
Right to be Heard:
Government must consider consumers’ interest when making laws
Responsibility for Right to be Heard:
Express Satisfaction or Dissatisfaction
report bad businesses

28. Consumer Bill of Rights
Right to Redress:
Seek a fair remedy (solution)
Responsibility to Right to Redress:
Seek Redress
tell businesses of bad products & ask them to solve the problem
A fair remedy is a fair solution to your issue. (This does not always mean money).
You have the right to sufficient information to help you make rational buying decisions.

29. Consumer Bill of Rights
Right to Consumer Ed:
Information must be made available to consumers
Responsibility to Right to Consumer Ed.:
Be an Educated Consumer
Gather information and make an informed decision

30. Consumer Bill of Rights
Right to Service
Convenient, courtesy and responsiveness to consumer problems and needs
Responsibility for Service
Show appreciation for good service by patronizing businesses that provide it
Remember our section in chapter 1 about being responsible consumers and how we can encourage businesses to be environmentally responsible…
Have students turn to page 382 in their text books.
Together read the A Question of Ethics; review the questions at the end
Then go over the “work as a group” at the top of page 382
divide a piece of paper into three columns; the first column will be the consumer rights; middle column will describe a situation where the right is involved; the third column describes actions that people can take to more effectively use each consumer right
In groups of 3 or 4 have students complete this activity and turn only one sheet per group with all group members names on it.
Example:
Right to Safety Kids playing with Air soft guns and getting shot near the eye Read all warnings and information before using the product
Follow the directions as it says to use proper eye safety
gear

31. Warm-Up
Which is a more reliable information source, advertising or a product label? How do you know?
Introduction to Business lesson plans – Friday, September 19 and Monday September 22, 2008
Have Students get a text book from the shelf.
Have students answer the question on a separate sheet of paper.
Answer: a product label is a more reliable source of information than advertising because it contains factual, specific information. Advertising, on the other hand may simply appeal to emotions and will attempt to encourage you to buy the product

32. Warm-Up Why is it important for consumers to have choices?
Remember to answer this question in complete sentences.
Chapter 15 Lesson Plans, Tuesday, September 23 and Wednesday September 24, 2008
Have students answer the warm-up on a separate sheet of paper – take attendance
Discuss their answers
(If consumers do not have choices that means there is no competition among companies to meet their needs. Competition drives innovation and keeps prices low, while monopolies lead to fewer choices and higher prices.

33. Definitions
Redress:
a remedy (solution) when a product doesn’t live up to your expectations.
Ex: return for $ back or exchange the item

34. Some Definitions Monopoly
a company which has an unfair advantage over competitors.
Example: cable company
Remember that a monopoly is when only one company offers the product or service. Most utilities are monopolies. Give the example of the Electric company deciding to increase the price by 40% (on the news on Friday 9/15) How can they do that? Because we cannot get our electricity from anyone else…
Begin the Brochure Activity (see handout)

35. Warm-Up
If you have a problem with a product, what’s the first step you should take? What will you do if you do not get a resolution with that first step?
Have students complete the warm-up on a separate sheet of paper
Discuss

36. Guarantee
a company’s promise that the product will meet standards over time or the company will repair or replace it
Ask students for examples of guarantees
(cars, appliances, etc)

37. Express Warranty
Oral or written promise for a specific quality of performance
Pass along copies of warranties for students to see.

38. Implied Warranty Unwritten guarantee
Imposed by law that certain standards are met
In a limited warranty there are specified limitations that must be explained in the warranty.
Every product comes with an implied warranty: unwritten guarantee that the product is of sufficient quality to fulfill the purpose for which it was designed.
For example you expect that when you buy an over-the-counter medication that it will not harm you when used properly

39. Resolve Problems Get your facts straight Go back to the seller
Start a file of the complaint
Get your receipt & warranty
Go back to the seller
Be calm and accurate
Keep record of your efforts
Don’t Give Up
Go to the company headquarters
Tell them what you think is a fair solution
Be sure to be fair
Pass out the sheet that gives all this information
Most of the time, when you have a problem with a product or service, the business will help solve the problem because businesses want to keep you as a customer. We will go into more detail of the complaint process – this is just an overview - You need to start a file of the complaint, gather your records, receipts, etc. Contact the person who sold you the item or performed
the service.
Calmly and accurately explain the problem and what action you would like taken.
Talk with the supervisor or manager, if necessary.
Allow each person you contact time to resolve the problem before contacting another person.
Keep a record of your efforts.
don’t give up
Call or write the person responsible for consumer complaints at the company’s headquarters.
describe the problem
Describe why you’re unsatisfied.
Detail what, if anything, you’ve done about it already.
Describe what you think is a fair solution.

40. Steps to Resolve Problems
Step 1 - Start with the Seller
store salesperson
manager
Step 2 - Write Manufacturer
Step 3 - Tell Better Business Bureau
Step 4 - File a Lawsuit (last resort)
Return to the store – explain the problem to a salesperson in the appropriate department. If the salesperson cannot help you then, ask to speak to a manager.
Make sure you get the salesperson and manager’s name
If the manager can’t help write to the manufacturer (or ) Describe the problem clearly and honestly, but not emotionally. Do not overstate. State what you are seeking. Include information about how to contact you. Enclose a copy of the receipt (not the original) keep a copy of all correspondence.
Assignment: Consumer Rights Brochure
Complaint Letter assignment – Pass out the scenario’s and have students write complaint letters.
When finished, go back to steps 3 – 4
If there is time go to the “Work as a group” Activity on page 390 – Have students make a list of consumer problems that they are aware of individually; then get with 3 – 4 people and compare their list; Then answer…how did most people become aware of various consumer problems? What actions were taken to resolve some of these concerns?

41. Warm-Up
Why is filing a lawsuit the last resort or step in the complaint process?
Chapter 15, lesson plans Thursday, September 25 and Friday, September 26, 2008
Have students answer the warm-up on a separate sheet of paper; pass back any study guides in the class folder; take attendance
Answer will vary.

42. Government Helps Consumers
Mediation
Third party who tries to resolve the complaint between the consumer and business
Not legally binding
Arbitration
Decides on a solution after hearing from both parties
Legally binding
Typically in Arbitration, the decisions by the board/panel are binding to the company but not to the consumer…meaning that the consumer could still go to court.
Other resources that help is media (taking your case to the local/national news)
When finished, have students do the complaint letter assignment
Then give students time to finish their brochures
If there is time left have students check their stocks.

43. Better Business Bureau (BBB)
Non profit, help resolve consumer problems
resolves problems
keeps a file of complaints and gives the info to consumers
Educates consumers
promotes honest ads
The BBB is not a government agency. It is a consumer agency to help consumers, but they do not have legal power to force a decision on a business or consumer.

44. Court Action Class Action Suit
Legal action by one party on behalf of a group of people who all have the same grievance.
Class action is when one person or small group represents the interests of many others – the results may results may be a refund to all consumers involved -

45. Small Claims Court Advantages
Don’t need a lawyer
Costs are low
Most resolved quickly
If all else fails you may need to go to small claims court. Small claims will handle cases (in most states) cases for maximum amounts of $1,000 – 10,000.
Lawyers are not allowed to represent in small claims courts
Review for the test:
In the tub on the back shelf are mini white boards and white board markers – have students get into 6 groups
Give each group a white board, marker, and paper towel. You will ask questions, each team will write their answer on the white board, and then you will ask the students to show their boards. Each team gets a point for each correct answer. (keep score on the big white board). (Questions are in the day’s folder)

47. 200 S. Sheldon
Rantoul, IL 61866
Dear Nike:
On September 1, 2009 I bought a pair of Nike Running Shoes from Finish Line at Market Place Mall in Champaign, IL. On September 5th, after running in them twice, the sole came apart. I took the shoes back to the Finish Line, on September 6th and spoke to the manager, Joe Smith. He said he could not refund or exchange the shoes.
I would like a refund for the shoes. I have enclosed a copy of my receipt and picture of the shoes. You can reach me at or
Sincerely,
Vickie Conlin

48. 200 S. Sheldon
Rantoul, IL 61866
Dear Nike:
I bought a pair of Nike Running Shoes on September 1, 2009 from Finish Line, Market Place Mall in Champaign, Il. I ran in the shoes two times and the sole came apart. This happened on September 5, On September 6, 2009, I went back to the Finish Line and spoke to Joe Smith, manager and asked for an exchange. He said he could not refund or exchange my shoes.
I would like an exchange for my shoes. I have enclosed a copy of my receipt and a picture of the shoes. You can contact me at or
Sincerely,
Vickie Conlin

49. Warm-Up Answer the matching questions on page 393
Chapter 15, Monday September 29, and Tuesday, September 30, 2008
While students are answering these questions, take attendance
Have students grade these with the red pens
Review for the test (go through the 7 rights/responsibilities)
Give the test
When finished have students check their stocks
If time is left have students draw a picture of a pig – (Pig Personality)

50. Warm-Up Complete the Chapter 15 Crossword
Chapter 15 Lesson Plans: Wednesday, October 1 and Thursday, October 2, 2008
Have the crossword on the front desk of each row so students can pick it up
Go over any questions students may have before the test.
Have students turn in study guides for chapter 15.
Have students clear their desks of everything except something to write with
Pass out chapter 15 test
After the test…have students get into groups of 3- 4 and discuss problems they have had with a product or service. Using a real situation have them come up with an outline of the steps they actually took to resolve the problem.- Did it go along with the steps we learned in chapter 15? What would you do differently? Share with the whole group