Consumer Powers & Protections

Congrats!!! You’re A Consumer! So what’s that mean? That means you’re using goods and services and contributing the economy and spending. Consumer, worker, citizen are the 3 economic roles that most people play. Services are actions that are performed for someone. Goods are physical objects that are produced.

Consumers have POWER You play a vital role in the country’s economic system. When many consumers buy a business’s products; that business profits. It will continue to pay it’s workers & possibly hire more. Those consumers will go out and buy more goods and services, and so the economy grows… Teens spend $170 Billion annually!

Businesses develop new and better products! Retailers who sell goods and services strive to offer the right mix of products & helpful service. Pleasing the customer is the key to business success.

What does an effective consumer do? Effective consumers set goals They place priorities on how they spend their time, energy, and money. Effective consumers think critically Use careful decision making skills; they avoid acting on impulse, and are realistic about advertising. Effective consumers do their research They read, observe, ask questions, compare prices, quality, and features about the many products and services available. Effective consumers plan for financial security. They set up plans for savings, investing, and insurance.

The Consumer Movement! At first, consumer’s had little say in the issues that affected them. The consumer movement changed that. The consumer movement is based on the idea that the power of consumers as a group can balance the economic & political power of business and industry. Consumer Advocates work at the head of these movements. These are people who will work at state and national levels to investigate business practices, expose unfair or dangerous situations, and encourage the passing of laws that protect consumers.

Famous Consumer Advocates Harvey Wiley Proved chemicals added to foods were dangerous Food Drug Act of 1906 Upton Sinclair His novel exposed filthy conditions in meat packing plant Meat Inspection Act of 1906 Stuart Chase F.J. Schlink Published book about misleading advertising Your Money’s Worth-1927 Rachel Carson Published book about environmental protection (pesticides, insecticides) Silent Spring-1962 Inspired envrnmntl laws Ralph Nader Published a work regarding defects in cars causing deaths Unsafe at any speed 1965 Seatbelts in cars

Consumer Responsibilities Consumer Rights Consumer Responsibilities Right to safety: be protected against products that are hazardous to health or life Responsibility to use products safely: use products as they are meant to be used Right to informed: protected against dishonest advertising, labeling or sales practice; given the facts to make informed choices Right to use information: research products they plan to buy; compare/evaluate brands and models. Right to choose: Assured access to a variety of goods and services at competitive prices Right to choose carefully: use buying power intelligently to encourage ethical business and safe, reliable products Right to be heard: know that their interests will be considered in the making of laws Right to speak up: let public officials know their opinion on consumer issues Right to redress: entitled to swift & fair remedies for wrongs that are done Responsibility to seek redress: pursue remedies when product/services don’t meet expectations Right to consumer education: have the opportunity to learn to be effective consumers Responsibility to learn: take advantage of every opportunity to develop consumer skills Right to service: expect convenience, courtesy, and responsiveness from business Responsibility to reward good service: courteous to business in return, show gratitude by being loyal patrons

All of those rights and responsibilities are a result of the consumer movement. John F. Kennedy established four of them in 1962. The rest were written later and eventually called the Consumer Bill of Rights. Over the years, congress has also passed several laws to protect consumers due to advocates and the consumer movement. Textile Fiber Products Identification Act: Requires manufacturers of textiles and fabrics to provide labels listing fiber content and other information. Food, Drug, and Cosmetic Act: Assures consumers of the safety & purity of food, products, and cosmetics. Automobile Information Disclosure Act: requires manufacturers label cars with specific info, such as MSRP

Federal Trade Commission (FTC)-enforces laws against dishonest advertising,. Enforces credit transactions, product labeling, and privacy. Consumer Product Safety Commission (CPSC)-works to protect the public against unreasonable risks and to develop safety standards for many household products. United States Dept of Agriculture (USDA)-inspects & set standards for meat, poultry, and canned fruits & vegs. Food & Drug Administration (FDA)-enforces laws & regulations on purity, quality, & labeling of food, drugs, and cosmetics. Federal Communications Commission (FCC)-regulates communications by radio, TV, wire, satellite, & cable. Provides consumer info and addresses complaints related to these areas. National Telecommunications & Information Administration (NTIA)-provides consumers with more choices and better quality telecommunications products, services, like internet & cell phones. Federal Consumer Information Center (FCIC)-provides info to people on a wide range of topics. Federal Agencies Sooo, how do we know that these many federal laws are actually enforced??

Other Consumer Assistance Consumer groups-focus on consumer education, protection, and advocacy. Consumer Testing Agencies & publications Business & Industry Groups-Better Business Bureau provides reliability reports on local businesses & allows consumers to file a complaint with them in the event of a problem Media-play a vital role in warning consumers about local scam artists who try to cheat consumers