1. Back to Table of Contents pp. 384-397 Chapter 24 Protecting Consumers

2. Introduction to Business, Protecting Consumers Slide 2 of 59 Learning Objectives After completing this chapter, you’ll be able to: 1.Describe 1.Describe what consumers can do when they have problems with products. 2.Identify 2.Identify groups and individuals that act as consumer advocates. continued

3. Introduction to Business, Protecting Consumers Slide 3 of 59 Learning Objectives After completing this chapter, you’ll be able to: 3.Explain 3.Explain how government protects consumers. 4.Name 4.Name ways in which businesses help and inform consumers.

4. Introduction to Business, Protecting Consumers Slide 4 of 59 Why It’s Important As a consumer, you’re empowered by the establishment of resources and organizations.

5. Introduction to Business, Protecting Consumers Slide 5 of 59 Key Words refund small claims court consumer advocates consumer reporter grade labels recall continued

6. Introduction to Business, Protecting Consumers Slide 6 of 59 Key Words legal monopolies licenses Better Business Bureau (BBB)

7. Introduction to Business, Protecting Consumers Slide 7 of 59 Your Power as a Consumer Every time you buy a good or service, you send a message to the company that you like its product. You and other consumers are responsible for the company’s success or failure.

8. Introduction to Business, Protecting Consumers Slide 8 of 59 Figure 24.1 CONSUMERS’ CHOICES REQUIRE CAUTION Make exercising more than a New Year’s resolution. Before joining a health club, carefully consider your options. How is this information useful to the consumer?

9. Introduction to Business, Protecting Consumers Slide 9 of 59 Customer Satisfaction When you return a defective product, the store will usually give you a refund (return the cost of a product to you), fix the item, or replace it.

10. Introduction to Business, Protecting Consumers Slide 10 of 59 Legal Action Small claims court settles cases involving relatively small amounts of money. In most states, a consumer can go to small claims court with little cost and without a lawyer.

11. Introduction to Business, Protecting Consumers Slide 11 of 59 Legal Action In small claims court, the size of claims varies from state to state but can be as low as $25 or as high as $5,000.

12. Introduction to Business, Protecting Consumers Slide 12 of 59 Fast Review 1.If you return a faulty product to a store, what are the three things the store might do to satisfy you? 2.What is the range of claims in small claims court?

13. Introduction to Business, Protecting Consumers Slide 13 of 59 Consumer Organizations Groups and individuals that work to protect, inform, and defend consumers are called consumer advocates.

14. Introduction to Business, Protecting Consumers Slide 14 of 59 Consumer Federation of America The Consumer Federation of America (CFA) works to promote laws that help consumers.

15. Introduction to Business, Protecting Consumers Slide 15 of 59 The CFA’s six major areas are: Financial services Utilities Product safety continued Consumer Federation of America

16. Introduction to Business, Protecting Consumers Slide 16 of 59 Transportation Health care Food safety Consumer Federation of America

17. Introduction to Business, Protecting Consumers Slide 17 of 59 National Consumers League The National Consumers League provides government, businesses, and other agencies with the consumer’s point of view.

18. Introduction to Business, Protecting Consumers Slide 18 of 59 National Consumers League One of the National Consumers League’s services is a national fraud information center. It also monitors the Internet to prevent consumer fraud.

19. Introduction to Business, Protecting Consumers Slide 19 of 59 Consumers Union Consumers Union is the nonprofit publisher of the magazine Consumer Reports.

20. Introduction to Business, Protecting Consumers Slide 20 of 59 Consumers Union Consumers Union tests products in its laboratories and reports the findings in its magazine. The magazine doesn’t advertise products or allow its findings to be used in advertisements.

21. Introduction to Business, Protecting Consumers Slide 21 of 59 Major Appliance Consumer Action Program The Major Appliance Consumer Action Program (MACAP) helps consumers solve problems with large appliances such as washers, stoves, and freezers.

22. Introduction to Business, Protecting Consumers Slide 22 of 59 Radio and Television Local radio and TV stations often have a consumer reporter, who reports on issues important to consumers, such as product safety, testing, and shopping.

23. Introduction to Business, Protecting Consumers Slide 23 of 59 Fast Review 1.What is Consumer Reports’ policy about advertising? 2.If you have problems with a new stove or washer, what organization can help you?

24. Introduction to Business, Protecting Consumers Slide 24 of 59 Government Organizations Many federal, state, and local governments provide consumer information. They also pass laws to protect consumers.

25. Introduction to Business, Protecting Consumers Slide 25 of 59 Federal Agencies The Consumer Information Center in Pueblo, Colorado is a good source for publications from government agencies.

26. Introduction to Business, Protecting Consumers Slide 26 of 59 Federal Agencies The Federal Trade Commission (FTC) enforces laws about business practices.

27. Introduction to Business, Protecting Consumers Slide 27 of 59 Federal Agencies The U.S. Department of Agriculture (USDA) inspects foods such as meat and gives them grade labels that indicate the level of quality.

28. Introduction to Business, Protecting Consumers Slide 28 of 59 Federal Agencies The Food and Drug Administration (FDA) tests and approves all drugs before they can be offered to consumers.

29. Introduction to Business, Protecting Consumers Slide 29 of 59 Federal Agencies The National Highway Traffic Safety Administration can order automakers to recall, or take back and repair or replace cars with defective parts.

30. Introduction to Business, Protecting Consumers Slide 30 of 59 Figure 24.2 THE IMPORTANCE OF LABELS Labels provide information to consumers. If you were buying a pair of gloves, what are three types of information on the label you would find helpful?

31. Introduction to Business, Protecting Consumers Slide 31 of 59 State Agencies Each state has a consumer affairs division. In some states, the attorney general’s office handles consumer affairs.

32. Introduction to Business, Protecting Consumers Slide 32 of 59 State Agencies States have laws about credit card interest rates, health care businesses, banking and mortgage rates, and other consumer services.

33. Introduction to Business, Protecting Consumers Slide 33 of 59 Public Utilities Public utilities are legal monopolies, or companies that are allowed to operate without competition.

34. Introduction to Business, Protecting Consumers Slide 34 of 59 Public Utilities A state public utilities commission regulates the rates charged by electric, gas, and water companies. In some areas, they also regulate local telephone services.

35. Introduction to Business, Protecting Consumers Slide 35 of 59 Public Utilities If a utility plans a rate increase, the commission usually holds a public meeting where consumers and consumer groups can speak out.

36. Introduction to Business, Protecting Consumers Slide 36 of 59 Licenses To prevent people from practicing occupations they’re not qualified to do, states issue licenses, or legal permits to conduct business.

37. Introduction to Business, Protecting Consumers Slide 37 of 59 Licenses Doctors, teachers, roofers, hair stylists, architects, and even professional wrestlers are required to have a license.

38. Introduction to Business, Protecting Consumers Slide 38 of 59 Licenses When you hire someone to provide a special service, you should first check to see if that person has a license.

39. Introduction to Business, Protecting Consumers Slide 39 of 59 Graphic Organizer How the Government Protects Consumers Graphic Organizer FEDERALANDSTATEGOVERNMENTSFEDERALANDSTATEGOVERNMENTS Test Drugs Test Drugs Require Licenses Require Licenses Inspect Food Inspect Food Enforce Laws Enforce Laws Regulate Business Regulate Business Inform Consumers Inform Consumers

40. Introduction to Business, Protecting Consumers Slide 40 of 59 Fast Review 1.What does the U.S. Department of Agriculture do to protect consumers? continued

41. Introduction to Business, Protecting Consumers Slide 41 of 59 Fast Review 2.How does a state public utilities commission protect consumers? 3.What are some occupations that require a license?

42. Introduction to Business, Protecting Consumers Slide 42 of 59 Customer Service Representatives When you buy a product, the package often lists the address, telephone number, or Web site for a customer relations representative.

43. Introduction to Business, Protecting Consumers Slide 43 of 59 Customer Service Representatives A company might also provide you with consumer booklets about its products at little or no cost.

44. Introduction to Business, Protecting Consumers Slide 44 of 59 Customer Service Representatives Some companies have specialists to help you select the best product for your needs.

45. Introduction to Business, Protecting Consumers Slide 45 of 59 Have you ever wanted to buy something in a store and the salesperson wasn’t around? Or maybe you have worked as a salesperson and had to deal with cranky customers. continued Customer Service Business Building Blocks

46. Introduction to Business, Protecting Consumers Slide 46 of 59 For a business to succeed, everyone involved needs to be treated with respect. continued Customer Service Business Building Blocks

47. Introduction to Business, Protecting Consumers Slide 47 of 59 Pay attention to what’s happening around you. Look for clues. How are people interacting? continued Tips for Good Customer Service Business Building Blocks

48. Introduction to Business, Protecting Consumers Slide 48 of 59 When someone is acting inappropriately, ask yourself what might be motivating such behavior. Keep lines of communication open. Everyone deserves respect. Tips for Good Customer Service Business Building Blocks

49. Introduction to Business, Protecting Consumers Slide 49 of 59 The Better Business Bureau The Better Business Bureau (BBB) is a nonprofit organization that collects information on local businesses and handles complaints.

50. Introduction to Business, Protecting Consumers Slide 50 of 59 The Better Business Bureau The BBB doesn’t enforce laws and it won’t recommend one local business over another.

51. Introduction to Business, Protecting Consumers Slide 51 of 59 Advertising Although businesses use ads to promote their products, they also use them to tell consumers as much about their products as possible.

52. Introduction to Business, Protecting Consumers Slide 52 of 59 Advertising You can use the information in ads to compare products and decide which one best suits your needs.

53. Introduction to Business, Protecting Consumers Slide 53 of 59 Magazines Magazines include articles or guides to help you choose products. Specialty magazines can give you information about certain types of products.

54. Introduction to Business, Protecting Consumers Slide 54 of 59 Fast Review 1.What is the Better Business Bureau (BBB)? 2.How can advertising be used as a source of consumer information?

55. Introduction to Business, Protecting Consumers Slide 55 of 59 Name one way restaurants made french fries healthier. continued

56. Introduction to Business, Protecting Consumers Slide 56 of 59 What’s the purpose of providing nutritional facts for McDonald’s french fries? continued

57. Introduction to Business, Protecting Consumers Slide 57 of 59 As a consumer, what’s the purpose of food labels? continued

58. Introduction to Business, Protecting Consumers Slide 58 of 59 How might the calorie-free fat replacer called Olestra affect the consumer? What if Olestra caused unpleasant side effects?

59. Back to Table of Contents pp. 384-397 End of Chapter 24 Protecting Consumers