1. Consumer Issues
Chapter 28

2. Objectives
Explain the role, rights, and responsibilities of consumers.
Evaluate sources of consumer information.
Outline the process of making a consumer complaint.
Identify ways to protect your privacy and prevent identity theft.
Describe common types of consumer fraud.
Give guidelines for being a responsible, considerate consumer.

3. Key Terms Consumer Redress Small claims court Identity theft Fraud
Pyramid scheme
Chain letter
Return policy
Shoplifting

4. Role as a Consumer
Consumer – someone who buys and sues products and services.
Through your buying decisions you are determining what goods and services are being offered.

5. Influences on Consumer Spending
What are your wants and needs?
How does family, friends, and advertising shape how you spend your money?
Other influences could be cultural, and society.
Redress – seek legal remedy when laws are violated.

6. Consumer Rights and Responsibilities
Right to safety
Right to be informed
Right to choose
Right to be heard
Right to redress
Right to consumer education
Right to service
Responsibility to use products safely
Responsibility to use information
Responsibility to choose carefully
Responsibility to speak up
Responsibility to seek redress
Responsibility to learn
Responsibility to reward good service

7. Activity
You bring back a calculator that doesn’t work when you take it home.
A supermarket discards food that has passed its expiration date.
A city inspector makes sure that a gas station’s pumps accurately count the number of gallons pumped out.

8. Sources of Consumer Information
Government Agencies
Consumer Organizations
Media Sources
Advertising
Packaging
Salespeople
Research Studies
Other Consumers

9. Evaluating Information
Consider the Source
Look for signs of bias
Distinguish between opinion and fact
When in doubt, check it out

10. Activity
What source would you use to get information about the following:
Comparison on different brands of a product. Example: cell phone
Quality of care provided by a local physician.
Nutrients in a food product.
Prices in a clothing sale.

11. Making a Complaint
In person – have item, receipt and other information handy
By phone – same as above
In writing – when either going in person or by phone, write a letter to the company. Be detailed, and polite and state the problem.

12. Taking Further Action Business Groups – BBB
Government Agencies – listed in the phone book
Legal Action – Small claims court

13. Identity Theft How does it happen? Steal your wallet or purse.
Steal your mail.
Complete a change of address form.
Retrieve discarded papers from trash.
Watch over your shoulder.
Obtain information from receipts that you leave behind
Steal personal information from internet.
Steal records from business.
Pose as a representative of a bank or government agency.

14. Identity Theft What you can do.
Don’t give out your Social Security Number
Don’t give personal information over the phone, .
When you need to give secure information over the internet, make sure the website is secure
Tear up or shred financial documents
Change computer or online passwords frequently
Keep items with personal information locked away
Make sure no one is watching when using an ATM

15. Guarding Against Fraud
Telemarketing Fraud
Pyramid Schemes and Chain Letters
Pyramid Scheme is a get-rich-quick plan. Never work because they cannot sustain large amounts of participants.
Chain letters – an or mail message that encourages people to send copies of the letter to a certain amount of others along with money.
Internet Fraud
Uses internet to conduct fraudulent transactions.

16. Activity
What damage can a person suffer from identity theft?

17. Taking Action
Individuals or business that will not reveal their location.
Insistence that payment be made before information can be sent out.
High-pressure offers that are “good for today only.”
Any offers that seem too good to be true.

18. Acting Responsibly
You would expect a business to act fairly and honestly towards you, you should act fairly and honestly towards businesses.
Be considerate to those around you, including employees. If there is a problem, speak with the manager.
Return Policy – rules for returning merchandise.
Shoplifting – theft of merchandise from a store by shoppers.