Chapter 3 Your Purchasing Power

Slide 2 What Are Consumer Rights? 3-4 Consumer Rights and Responsibilities Many laws protect consumers. Consumer Bill of Rights Airline Passenger Rights Consumer Technology Bill of Rights Patients’ Bill of Rights Consumer Protection Laws o Examples: Food, Drug, and Cosmetic Act; Hazardous Substances Act; Cigarette Labeling and Advertising Act; Nutrition Labeling and Education Act; FERPA; HIPAA

Slide 3 Sources of Consumer Protection 3-4 Consumer Rights and Responsibilities Federal agencies o Examples: USDA, FDA, CPSC, FCC, FTC, FAA, SEC State and local assistance Private Organizations o Examples: BBB, National Consumers League, Consumers Union

Slide 4 How Are Consumers Defrauded? 3-4 Consumer Rights and Responsibilities Deception involves false or misleading claims made about a product. Bait and switch Fake sales Low-balling Pyramid schemes Ponzi schemes Pigeon drop Infomercials

Slide 5 How Are Consumers Defrauded? 3-4 Consumer Rights and Responsibilities R9KRo

Slide 6 How Can Consumers Protect Themselves from Fraud? 3-4 Consumer Rights and Responsibilities Shop smart Be aware of prices Understand sale terminology Compute unit prices Read labels Check packages carefully Read contracts Keep receipts and warranties Compute total cost Research businesses