Consumer Rights & Responsibilities

What do you do? Just Imagine… You just bought a brand new iPad from Best Buy yesterday. When you got home, however, you tried it out only to find that you could not hear a sound! What do you do?

7 Consumer Rights Right to be informed Right to choose Right to safety Right to be heard Right to have problems corrected Right to consumer education Right to service

1. Right to Be Informed Consumers have the right to receive accurate information. Businesses are required to provide certain details about their product. Companies provide this information through product labeling. Think About It: Consumers can make wise decisions only if they have the information they need. What do you look at when you make decisions to buy products?

1. Right to Be Informed Example: Benefit to Consumers: I have shellfish allergy so I know not to each the lobster rolls at Red Lobster Benefit to Consumers: Know what they can eat if they have allergies Know what detergent to wash clothes with Know what the serving size is

2. Right to Choose Because the U.S. has a market economy, its consumers can choose from a wide variety of goods and services. Businesses compete with each other to sell their products to consumers. Competition provides choices. Think About It: What would happen if there was no competition? What if AT&T was the only cell phone provider out there?

2. Right to Choose Example: Benefit to Consumers: I buy a Verizon cell phone because there are no AT&T cell towers near my home in Reston Benefit to Consumers: Lower prices Better quality More choices

3. Right to Safety Product liability is the legal responsibility that manufacturers have to make a safe product. Federal laws ensure that clothing, food, toys, and other items meet product-safety standards and will not harm consumers. Think About It: Think about current events in the news. Which company has been in the news over the last several months because they violated our right to safety?

3. Right to Safety Example: Benefit to Consumers: My car airbags have been recalled due to safety concerns of exploding at high temperatures Benefit to Consumers: Keeps us safe Keeps children safe SAFETY!

4. Right to Be Heard Consumers who have complaints about products or services have a right to be heard. Businesses rely on customer satisfaction. Think About It: What happens if a business does not listen to the concerns of its customers?

4. Right to Be Heard Example: Benefit to Consumers: The cashier in aisle 7 put my eggs, bread, and milk in the same bag. The groceries were damaged and I let Customer Service know. The cashier was issued bagging training so it would not happen again. Benefit to Consumers: Fixes issues Keeps customers happy Happy customers come back, tell friends, buy more

5. Right to Have Problems Corrected If a customer takes a defective item back to a store with a receipt, the business will usually replace it or issue a refund. If not, consumers can write to the manufacturer for a resolution. If the manufacturer will not help, the consumer may need to contact a government agency. Think About It: Companies will usually issue a replacement or a refund. In what situation might the company deny a refund?

5. Right to Have Problems Corrected Example: I contact Fitbit via live chat because my Fitbit Zip no longer works. I am worried that they will make me pay for a new one. They send a replacement Zip at no additional charge to me. Benefit to Consumers: Fixes issues Contact local news anchors to help fix problems

6. Right to Consumer Education Consumers have the right to learn how a market system works. You should know: How to get the best value and satisfaction for your money Different stores might charge different prices How to comparison shop to find the best buy Think About It: Why might Store A charge a higher price for the same item that is sold at Store B? How can you do your best to ensure you get the best price for the item you want?

6. Right to Consumer Education Example: I am on the hunt for new flipflops. I quickly do a google search and find them at 2 different stores. I comparison shop and purchase them from Zappos because they were cheaper. Benefit to Consumers: Cheaper prices, better quality, more choices Happy customer

7. Right to Service Customers have the right to be treated in a respectful and courteous manner. You have the right to: Expect prompt delivery of goods/services Expect goods/services that meet the standard of quality a business claims Be served without discrimination Think About It: When laws or regulations protect you from discrimination, what are the personal characteristics they usually include?

7. Right to Service Example: Benefit to Consumers: I go to Red Robin with my family. The waitress is very nice and offers us extra sweet potato fries while we wait for our order. She also brings Crayons and paper to the table to keep the kids entertained while we wait for our food order. Benefit to Consumers: Treated with care and consistency

Show What You Know: CLASS ACTIVITY Match the consumer issue with the appropriate consumer rights.

Consumer Responsibilities

6 Consumer Responsibilities To be informed To choose carefully To be reasonable To report unethical behavior To be involved in consumer advocacy To be honest

1. To Be Informed Responsible consumers find and use available information. When you shop for: Food – read product labels for nutritional information Clothes – read labels to find out what materials are used and how to clean them Major Purchases – read fact sheets and consumer magazines Think About It: What kind of information should you look for when you buy food? Clothes? Major purchases?

1. To Be Informed Example: I read the tag on my new wool sweater before washing it. I noticed that the tag said to wash in cold water with no dryer. I am very excited that I read this so I do not ruin my new sweater.

2. To Choose Carefully Responsible consumers make comparisons to find the best product or service at the best price. Examine the options and prices and then make an educated choice. Consumer choices can affect: The Environment The Conservation of Resources Think About It: Many consumer choices can affect the environment. What are some choices that you can make as consumers that could affect the environment? Think cars, clothes, food.

2. To Choose Carefully Example: I chose to purchase a reusable Camelbak water bottle in order to save the environment by not purchasing a disposable 16.9fl Deer Park water bottle everyday.

3. To Be Reasonable Consumers must follow the instructions provided in product manuals or other materials on the safe use of products. Think About It: Why is it important to read the label of a cold remedy to find out its recommended dosage.

3. To Be Reasonable Example: I made sure to read the instructions on the allergy medicine bottle before taking a dosage to cure my sneezing fit. I wanted to ensure that I took the correct amount and did not over do it.

4. To Report Unethical Practices Responsible consumers help improve the policies and products of businesses where they shop. Let a company know if you are dissatisfied with its products or policies. Report unfair, unsafe, and illegal business practices. Think About It: If you take a defective item back and the store cannot solve the problem, what is your next step? (manufacturer, government agency)

4. To Report Unethical Practices Example: I called the local health inspector after I noticed a rat named Remy leaving the coffee shop on Main Street. I was concerned there would be an infestation and it would lead to an unsafe and dirty work environment.

5. To Be Involved in Consumer Advocacy Responsible consumers take a stand, when needed, to protect each other. For example, you could organize or participate in a boycott if you object to a company’s policies or products. Think About It: Why might you organize a boycott? Think about gas prices.

5. To Be Involved in Consumer Advocacy Example: The news reported that the local tire shop was dropping oil in the reservoir. I decided to rally my friends and start a boycott outside of the tire shop.

6. To Be Honest Responsible consumers refrain from taking advantage of business policies. For example, you should: Respect return policies Be honest about broken (as opposed to defective) merchandise Think About It: Are you being honest if you buy a product at Store A and return it to Store B because they do not require a receipt and will give you a cash refund? The product at Store B sells for $10 where as Store A charges $7.

6. To Be Honest Example: I dropped my iPhone in the lake this weekend. I decided to take my phone back to Verizon and ask for a new phone since mine was now broken. The sales associate asked me if it had been damaged by water and I said no (I knew this would void the warranty). Yes, I lied, but I had no money to buy a new phone – I figured no one would know the difference & I would have my new phone without a problem.

Show What You Know: CLASS ACTIVITY Match the consumer issue with the appropriate consumer responsibilities.