Chapter 27

 Goals:  Avoid undesirable effects of advertising  Understand laws and agencies that protect consumers from deceptive and misleading practices  Be prepared to assert and defend your rights through appropriate means

 Advertisers use several techniques to increase demand for their products:  Association —connect product with a desirable trait or quality  Bandwagon —”best selling in its class ____ years in a row”  Celebrity— a famous person endorses the product  Claims of authorities —”4 out of 5 dentists recommend ….”  Seeing is believing— actual consumers provide testimonials about the benefits of the product  What are some ways to get objective information about products?

 Federal Trade Commission—enforces laws against false advertising and mislabeling  Consumer Product Safety Commission— enforces laws and regulations setting minimum standards for quality and safety of goods  CPSC may issue mandatory product recalls  el.html el.html  Nutrition labeling  Americans with Disabilities Act—businesses must provide “equal access” to persons with disabilities  Many states also have additional consumer protection laws and agencies

 How do agencies enforce these laws?  Cease and desist orders—stop the forbidden practice  Consent decrees—a negotiated agreement in which the company voluntarily agrees to stop the practice (may provide for “agreed” punishment, such as restitution to consumers)

 Comparison shopping—especially important for expensive/large purchases  Check with Better Business Bureau:   Angie’s List:  Read the fine print!  Check warranties and limits  If you can manage your credit responsibly, use credit cards. Why?  Rewards and extended warranties; can dispute charges  Government resources, such as Montana Department of Justice 