Personal Finance Chapter 12

© EMC Publishing, LLC Consumer Awareness Consumer Movement Began in the late 1800s – Meatpacking plants – The Jungle

What do you think? Discussion © EMC Publishing, LLC Have you read The Jungle, by Upton Sinclair? What did you think? What impact did that book have on government and the rights of the people? Are there any books today that have had that type of impact on society and government? If no, why not?

© EMC Publishing, LLC Consumer Awareness Three Roles Producer – Advertise

© EMC Publishing, LLC Consumer Awareness Three Roles Producer – Advertise – Provide toll-free numbers

© EMC Publishing, LLC Consumer Awareness Three Roles Producer – Advertise – Provide toll-free numbers – Provide warranties

© EMC Publishing, LLC Consumer Awareness Three Roles Producer – Advertise – Provide toll-free numbers – Provide warranties – Use Energy Star label

© EMC Publishing, LLC  Consumer Awareness Three Roles Producer – Advertise – Provide toll-free numbers – Provide warranties – Use Energy Star label – Get Seal of Approval (Good Housekeeping)

© EMC Publishing, LLC Consumer Awareness Three Roles Producer Consumer – Make informed choices Find product information Do product comparisons Ask for recommendations

© EMC Publishing, LLC Consumer Awareness Three Roles Producer Consumer – Make informed choices – Communicate opinions Write letters Tell retailers Return surveys

© EMC Publishing, LLC Consumer Awareness Three Roles Producer Consumer – Make informed choices – Communicate opinions – Work together Boycott Use lobbyists Form consumer interest groups

© EMC Publishing, LLC Consumer Awareness Three Roles Producer Consumer Citizen – Vote – Communicate with elected officials – Learn about government agencies

© EMC Publishing, LLC Consumer Awareness Government Agencies Federal Trade Commission (FTC)

© EMC Publishing, LLC Consumer Awareness Government Agencies Federal Trade Commission (FTC) United States Postal Service

© EMC Publishing, LLC Consumer Awareness Government Agencies Federal Trade Commission (FTC) United States Postal Service Federal Communications Commission (FCC)

© EMC Publishing, LLC Consumer Awareness Government Agencies Federal Trade Commission (FTC) United States Postal Service Federal Communications Commission (FCC) Food and Drug Administration (FDA)

© EMC Publishing, LLC Consumer Awareness Government Agencies Federal Trade Commission (FTC) United States Postal Service Federal Communications Commission (FCC) Food and Drug Administration (FDA) Surface Transportation Board

© EMC Publishing, LLC Consumer Awareness Government Agencies Federal Trade Commission (FTC) United States Postal Service Federal Communications Commission (FCC) Food and Drug Administration (FDA) Surface Transportation Board Consumer Product Safety Commission (CPSC)

© EMC Publishing, LLC Consumer Awareness Government Regulation Debate for – Protects against price gouging – Promotes product standards – Supports consumer safety

© EMC Publishing, LLC Consumer Awareness Government Regulation Debate against – Impedes caveat emptor – Limits competition – Hurts economy (companies lose money) – Deregulation cuts “red tape”

© EMC Publishing, LLC Which of the following government agencies regulates the safety of our food? A.FTC B.FDA C.CPSC D.FCC E.FEC

© EMC Publishing, LLC Which of the following government agencies regulates the safety of our food? A.FTC B.FDA C.CPSC D.FCC E.FEC

What do you think? Discussion © EMC Publishing, LLC Do state governments as well as the federal government regulate commerce? What is the difference? How do consumers know what rights they have? Should the government increase or decrease regulation? Why?

© EMC Publishing, LLC Consumer Rights Legislation Consumers’ Bill of Rights – 1962 – Right to safety – Right to be informed – Right to choose – Right to be heard

© EMC Publishing, LLC Consumer Rights Right to Safety Safe cars – Car seats

© EMC Publishing, LLC Consumer Rights Right to Safety Safe cars – Car seats Safe water

© EMC Publishing, LLC Consumer Rights Right to Safety Safe cars – Car seats Safe water Safe food

© EMC Publishing, LLC Consumer Rights Right to Safety Safe cars – Car seats Safe water Safe food Protection against lead and toxins

© EMC Publishing, LLC Consumer Rights Right to Be Informed Home shopping – Internet – Catalogs – TV – 30-day rule

© EMC Publishing, LLC Consumer Rights Right to Be Informed Telemarketing – Do Not Call ( (

© EMC Publishing, LLC Consumer Rights Right to Be Informed Contract – Mutual assent – Consideration – Competent parties

© EMC Publishing, LLC Consumer Rights Right to Be Informed Consumer fraud – Pyramid schemes – Internet

Consumer Rights Right to Choose Competition (markets) – Competitive

© EMC Publishing, LLC Consumer Rights Right to Choose Competition (markets) – Competitive – Oligopolistic

© EMC Publishing, LLC Consumer Rights Right to Choose Competition (markets) – Competitive – Oligopolistic – Monopolistic

© EMC Publishing, LLC Consumer Rights Right to Be Heard Government import policy – Tariffs – Quotas – NAFTA

© EMC Publishing, LLC Dear Better Business Bureau: Recently I purchased a new washing machine from … Consumer Rights Right to Be Heard Better Business Bureau

© EMC Publishing, LLC Consumer Rights Right to Be Heard Better Business Bureau Lodging a complaint (advance to see sample)

© EMC Publishing, LLC

Consumer Rights Right to Be Heard Next step after letter of complaint – Legal / Court Consumer action panels Arbitration Small-claims court Lawsuit Class-action suit

© EMC Publishing, LLC Consumer Rights Fraud on the Internet Phishing – identity theft scams Redirecting to another site

© EMC Publishing, LLC Consumer Rights Fraud on the Internet Tips – Hot spot – WiFi (theft is easier) – Use secure site for data (shttp or https) – Make sure company is reputable, if possible – Print copy of all transactions – Report phishing to

© EMC Publishing, LLC Which of the following is not a right from the Consumers’ Bill of Rights passed in 1962? A.Right to be informed B.Right to safety C.Right to be heard D.Right to choose E.Right to freedom of religion

© EMC Publishing, LLC Which of the following is not a right from the Consumers’ Bill of Rights passed in 1962? A.Right to be informed B.Right to safety C.Right to be heard D.Right to choose E.Right to freedom of religion

What do you think? Discussion © EMC Publishing, LLC Do you use eBay or any other online auction site? How does it work? What tips do you have for shopping on the Internet? Have you ever had a bad experience online? Explain.

© EMC Publishing, LLC