Consumer Powers and Protections Chapter 1 Consumer Powers and Protections

1.1 Consumer = is someone who uses goods and services Goods = physical objects that are produced (cookies, jeans) Services = actions that are performed for someone (haircut)

Your Economic Role Consumer Worker Citizen How are these related???

Consumers Have POWER Collectively our purchasing decisions affect which goods and services are produced. Example- consumers buy lots of SUV’s, they make more, hire more workers, more people earn more money, etc. etc. Marketplace= all of the goods and services available for sale to general public Retailers= sell directly to the consumers (Wal Mart) Teens spend $172 BILLION Yearly

Technology Changes how we buy things TV Internet Shop and Compare from home! Easier to buy on impulse

Effective Consumers Set goals Think critically Do research Manage every day finances Plan for financial security

1.2 The Consumer Movement Power of the consumers as a group can balance the power Consumer advocates= people or groups who work on behalf of consumers Page 27- 28 pioneers of the consumer movement

Consumer Rights and Responsibilities Page 29 <pg 15 wkbk read aloud> Federal Laws Page 30 Federal Agencies Page 31 <pg. 17 wkbk., poss. posters>

Other consumer Assistance Consumer Groups- focused on education, protection, and advocacy Consumer Testing Agencies and Publications- Consumers Union (CU) an independent consumer testing agency, buy products and test them Consumer Reports Magazine

Better Business Bureau- offers reports on local business that consumers report Consumer affairs department Consumer action panels Media

1.3 Safeguarding your privacy Identity Theft= illegal use of a persons personal information Social Security Number- unique 9 digit number to keep track of your earnings DO NOT GIVE OUT UNLESS NECESSARY How Does it Happen?? Pg 35

Preventing Identify Theft Handle mail with care Keep personal items locked Safeguard passwords Do not give out personal info Cut up old credit cards, statements,etc.

If your Identity is stolen File a report with police Notify banks and credit card companies Alert agencies

Data Collection and Privacy Issues Some info is needed to process an order Some companies will keep that info Some might sell it

Online Profiling When companies collect info about web sites consumers visit and then use that info to predict what consumers might buy in future Cookies- small files stored on your computer that allows web sites to remember info about you <debate the issue>

1.4 Recognition of Fraud and Deception Deceptive Advertising- likely to mislead consumers through false statements, omitted info, etc. Bait Switch – retailers advertise a product that it has no intention of selling in hopes the consumer will buy something else False promise of free gifts Deceptive pricing – saying a “sale” when it is no better than every day price Hidden Prices

Fraud Fraud- deceitful conduct designed to manipulate another person for some gain. Pyramid scheme – illegal get rich quick plan Chain letters BUYER BEWARE

1.5 Resolving Consumer Problems Registering a complaint State the problem Have receipts What do you want to happen? Go to store or write letter see page 48

Legal actions- Small claims court Lawsuit Class action suit