Chapter 19 Lesson 1 Personal Finance

Consumer Rights  As a consumer you have many rights.  Consumerism is a movement to educate buyers about the purchases they make and to demand better, safer products from manufacturers.  Starting in the late 1800s, the government began passing legislation to protect consumer interests.  In 1906 Congress passed the Federal Food and Drug Act, which established the Food and Drug Administration.  In 1914 the government set up the Federal Trade Commission (FTC) which is the nation’s consumer protection agency.  It works to prevent fraud, deception, and unfair business practices.

The Influence of John F. Kennedy  In 1962 President John F. Kennedy delivered a special message to Congress.  The president noted that the variety of food and medicine available to consumers had greatly increased.  He also observed that technological advances had made home appliances more complex.  Kennedy pointed out the average person could not be sure of the quality and safety claims made for the thousands of products on the market.  He saw consumer protections as key not only to health and safety, but also to economic success.

Kennedy’s 4 Basic Consumer Rights  The Right to Safety: Consumers have the right to safe products that will not harm their health or lives.  The Right to be Informed: Consumers have the right to be protected against dishonest or very misleading information.  The Right to Choose: Consumers have the right to choose from a variety of products and services at competitive prices.  The Right to be Heard: Consumers have the right to have their interests considered when laws are being written