1. 25-1 Chapter 44 Consumer Protection and Product Safety

2. Meat and Related Products Safety  U.S. Department of Agriculture (USDA)  Responsible for regulating meat, poultry, and other food products  Can initiate legal proceedings against violators Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-2

3. Case 44.1: Adulterated Food  Case  United States of America v. LaGrou Distribution Systems, Incorporated  466 F.3d 585, Web 2006 U.S. App. Lexis 25986 (2006)  United States Court of Appeals for the Seventh Circuit  Issue  Has LaGrou knowingly engaged in the improper storage of meat, poultry, and other food products, in violation of federal food safety laws? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-3

4. Food, Drugs, and Cosmetics Safety  Food, Drug, and Cosmetic Act (FDCA):  Provides the basis for the regulation of much of the testing, manufacture, distribution, and sale of foods, drugs, cosmetics, and medicinal products  Food and Drug Administration (FDA)  Federal administrative agency that administers and enforces the FDCA Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-4

5. Regulation of Food  The FDCA prohibits  shipment, distribution, or sale of adulterated food  false and misleading labeling of food products  Nutrition Labeling and Education Act (NLEA): A federal statute that requires food manufacturers to disclose on food labels nutritional information about the food  Requires the disclosure of uniform information about serving sizes and nutrients Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-5

6. Regulation of Drugs  Drug Amendment to the FDCA  Empowers the FDA to license new drugs  Manufacturer must provide adequate warnings, directions for use  May revoke approval of previously licensed drugs  Prohibits adulterated, misbranded drugs Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-6

7. Regulation of Cosmetics  FDA requirements for cosmetics:  Proper labeling  Disclosure of ingredients  Display of warnings if carcinogenic  Adulterated or misbranded cosmetics are prohibited  FDA may remove from commerce cosmetics that contain unsubstantiated claims Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-7

8. Regulation of Medicinal Devices  Medicinal Device Amendment: Gives the FDA authority to regulate medicinal devices, such as heart pacemakers, kidney dialysis machines, defibrillators, surgical equipment, etc.  Mislabeling of medicinal devices is prohibited  FDA is empowered to remove “quack” devices from the market Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-8

9. Product and Automobile Safety  Consumer Product Safety Act (CPSA): A federal statute that regulates potentially dangerous consumer products and that created the Consumer Product Safety Commission  Consumer Product Safety Commission (CPSC): An independent federal administrative agency empowered to  adopt rules and regulations to interpret and enforce the CPSA Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-9

10. Product and Automobile Safety  conduct research on the safety of consumer products  collect data regarding injuries caused by consumer products  issue product safety standards on consumer products Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-10

11. Medical and Health Care Protection  Health Care Reform Act: A 2010 federal statute that  increases the number of persons who have health care insurance in the United States  provides new protections for insured persons from abusive practices of insurance companies Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-11

12. Unfair and Deceptive Practices  The Federal Trade Commission Act (FTC Act) prohibits unfair and deceptive practices including:  False and deceptive advertising  Bait and switch Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-12

13. False and Deceptive Advertising  Advertising is false and deceptive under Section 5 of the FTC Act if it  contains misinformation or omits important information that is likely to mislead a “reasonable consumer”  makes an unsubstantiated claim Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-13

14. Bait and Switch  Seller advertises low-cost merchandise to attract customers  Seller pressures buyers to upgrade  Refuses to show advertised merchandise  Discourages employees from selling advertised merchandise  Fails to have adequate quantities of advertised merchandise Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-14

15. Door-to-Door Sales  Many states permit consumers to rescind contracts made with door-to-door sales representatives within a set period after signing the contract  FTC requires salesperson to permit cancellation as specified  Consumer must send required notice of cancellation to seller Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-15

16. Do-Not-Call Registry  Do-Not-Call Registry: A register created by federal law on which consumers can place their names and free themselves from most unsolicited commercial telephone calls Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-16

17. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 44-17