Standard 3 Objective 4 Describe the rights and responsibilities of buyers and sellers under consumer protection laws.

Terms Consumer Bill of Rights (State of the Union Address of 1962-President John F. Kennedy)  The right to safety-protection against practices that result in noncompetitive prices for goods and services available  The right to choose-protection against practices that result in noncompetitive prices for goods and services available  The right to be informed-protection against false and misleading advertising  The right to be heard-guarantee of consumer representation in the deciding of government policy and enforcement of consumer protection laws

Better Business Bureau (BBB) A nonprofit, business-sponsored agency with local offices dedicated to educating consumers, helping to resolve disputes, and promoting honest business practices (

Food and Drug Administration (FDA) A federal agency which sets and enforces safety standards for food, drugs, and cosmetics (

Consumer Product Safety Commission (CPSC) A federal agency which sets and enforces safety standards on household appliances, toys, and tools (

Federal Trade Commission (FTC) A federal agency which protects consumers against false advertising, illegal sales schemes, and unfair trade practices (

Federal Citizen Information Center (FCIA) Assists federal agencies in the development, promotion, and distribution of practical consumer publications (

Bureau of Consumer Protection (A division of the FTC) A federal agency which provides state and local consumer protection to help answer consumer problems and enforce consumer protection and fraud laws

Consumer Unions (Consumer Product- Testing Organizations) A non-profit organization that helps guide consumers in the market-place with testing. Through its monthly magazine, Consumer Reports. Consumer Union gives tests results and product ratings. ( Other consumer magazines and web sites are Consumers’ Research and Changing Times.

Monopoly A company that has an unfair advantage over competitors in an area of business

Warranty A company’s promise that its product will meet specific standards over a given time period or replace or refund

Full Warranty A written promise that the company will repair or replace a defective or dissatisfied product at no charge.

Limited Warranty May require the consumer to pay labor or handling charges

Implied Warranty of Merchantability The product is what it is called and does what its name implies

Implied Warranty of Fittness The product is fit for any performance or purpose promised by the seller

PRESENTATION: Standard 3 Objective 4 Describe the rights and responsibilities of buyers and sellers under consumer protection laws. Explain the purposes and features of consumer protection laws, agencies, and sources of assistance

CONSUMER RIGHTS AND RESPONSIBILITIES RIGHT: *To safety  Food and Drug Administration (FDA)  government protection  Consumer Product Safety Commission (CPSC) RESPONSIBILITY: *To use products safely read information, use care booklets

*To be informed Protection against false and misleading information *To seek information and use it to make decisions Choose appropriately

*To choose A variety of products Competitive prices No monopolies *Choose goods and services carefully Shop a variety of places Use consumer magazines

*To be heard Complain BBB Consumer protection Agency *To speak up and let likes and dislikes be known Complaint letters Support reputable businesses

Terms (cont.) Identity Theft-”True-name fraud” Someone wrongfully acquires and uses a consumer’s personal identification, credit, or account information

Fraud A deliberate deception, designed to secure unfair or unlawful gain. (“Cheating the Consumer”)

Scam Fraudulent or deceptive schemes

Pyramid schemes A type of financial fraud in which people pay to join and organization in exchange to the right to sell memberships to others.

Phishing An scam that attempts to trick consumers into revealing personal information

PRESENTATION: Standard 3 Objective 4 Describe the rights and responsibilities of buyers and sellers under consumer protection laws. Describe ways to avoid “identity theft” and fraud (e.g., keep Social Security numbers secure, properly dispose of outdated documents.

PRESENTATION: Standard 3 Objective 4 Describe the rights and responsibilities of buyers and sellers under consumer protection laws. Describe ways to avoid financial scams and schemes designed to defraud consumers (e.g., Ponzi and pyramid schemes, affinity fraud)