3. As an America Consumer…. You expect the product you purchase to work properly You expect to be treated fair and honestly by a merchant You expect products you buy to be reliable and safe If there is a problem, you expect to be able to exchange or return the item and get a refund

4. A set of consumer rights and responsibilities was established to protect consumers. President John F. Kennedy established four in 1962 The United Nations added four more in 1985 Ongoing revisions as change occurs in the United States and globally, consumers rights and responsibilities change

5. Right To Safety Products must not endanger consumers’ lives or health. Responsibility to Use Products Safely Consumers are responsible for following the manufacturers’ instructions for proper use and maintenance of the products.

6. Right To Be Informed Businesses must provide accurate information in advertising, labeling, and sales practices. Responsibility To Use Information Consumers are responsible for using the information to evaluate product choices.

7. Right To Choose Consumers should have a wide variety of goods and services from which to choose. Responsibility To Choose Carefully Consumers should take advantage of product variety by considering many options and making rational choices.

8. What is the objective of the game Monopoly? Your Turn: What do you think the term monopoly means? Write the definition

9. A situation in which a single company or group owns all or nearly all of the market for a given type of product or service. Most believe that, with few exceptions, the system just doesn't work when there is only one provider of a good or service because there is no incentive to improve the product to meet the demands of consumers. Legal Monopoly: A business or group that owns a patent on a particular product or service License that gives the holder exclusive rights to a process, design or new invention for a designated period of time. (~20 years) This time frame is often used for research and development United States Postal Service Federal law prohibits anyone but the Postal Service from delivering first-class mail.

10. Right To Be Heard The government must consider consumers interests when creating laws. Responsibility to Express Satisfaction or Dissatisfaction Express concerns to those who can help. Consumers should tell their elected officials their opinions on consumer issues and inform them of improper business practices.

11. Right To Redress Consumers should be able to obtain fair remedies to consumer problems Responsibility To Seek Redress Consumers should inform businesses of product defects and unfair practices. Consumers should pursue remedies.

12. Remedy to a problem Refund or other compensation You should seek redress when you are dissatisfied Write a complaint letter to a company Most companies want to fix a problem protect their reputation want to stay in business If you can’t work out a solution, you have the right to sue Used as a last resort When physical harm by the product or service has taken place A lawyer is usually necessary

13. Right To Consumer Education Sufficient information should be available for consumers to make rational decisions. Responsibility to Be an Educated Consumer Consumers should take advantage of opportunities to gather information and learn how to make intelligent buying decisions.

14. Right To A Healthy Environment Businesses should avoid polluting the environment and should contribute to the welfare of the community in which they operate. Responsibility To Contribute To a Healthy Environment Consumers should support businesses that operate responsible and report environmental abuses to authorities.

15. Right To Basis Needs People have access to adequate food, clothing, shelter, health care, educations, public utilities, water and sanitation. Responsibility to consumer sustainably Consume sustainably, so as not to prevent others from having their needs met.

16. World Consumer Rights Day March 15 th Date of Kennedy’s speech

17. Ongoing revisions as change occurs in the United States and globally, consumers rights and responsibilities change 1.Individually, think of changes that are occurring or will occur in the future that will affect consumer rights and responsibilities. Write down at least two. 2.With your partner compare ideas. 3.Share ideas with whole class.

18. Which consumer right protects you if: 1. The teddy bear that you bought your little sister has an arm that pulls off easily. 2. One company has a monopoly on cable and so they can set any price they want for the service. 3. You bought a used car and the dealer did not reveal numerous flaws on the vehicle. You have been dealing with that problem for eight months.

19. It is your consumer responsibility to: 4. When you know that something should be recalled because you see a dangerous safety issue. 5. When you are going to purchase a major appliance. 6. When someone has contracted with you to provide a service and they have fallen far short of what was agreed to in your contract.

20. 1.Name the product you are researching in the consumer report magazine 2.Looking at your product of choice, what are 5 different brands that were rated? 3.On your consumer report chart, look at the test results. List the different criteria that were used to test your product of choice. 4.Examine the ranking of your products by brand. Identify why that particular brand is rated #1. Look at the test results, what do you think really made the top products shine over the others. 5.Look at the price of each brand. How does price play a factor in how each item ranked? Are the better rated products always more expensive? 6.What kinds of information did you find in Consumer Reports that would help you be a more effective consumer? Identify at least three.

21. Consumer Report Assignment 1.Choose a Brand 2. Test Criteria #1 (Pick a feature of the product you think is important) 3. Support (2-4 sentences explaining information about Evidence 1 and why it is important) 4. Test Criteria #2 (Pick a feature of the product that you think is important.) 5. Support (2-4 sentences explaining information about Evidence 2 and why it is important) 6. Test Criteria #3 (Pick a feature of the product that you think is important) 7. Support (2-4 sentences explaining information about Evidence 3 and why it is important) 8. Conclusion (Write a 4-6 sentence statement summarizing what you learned about the product ) 9. Critical Thinking (Write a 4-6 sentence statement answering the question: Would you buy this product? Why or why not?

23. Also called: Consumerism Seeks to protect and inform consumers by requiring such practices as honest advertising, product warranties, and improved safety standards. Grew out of consumers’ desire for government intervention on their behalf.

24. Created in 1914 Responsible for protecting consumers from unfair or deceptive business practices, such as misleading information in advertising or on product labels.

25. Issued by the FTC if it has discovered a company is using deceptive advertising This order requires the company to stop using the advertisement. Continued use of the ad would result in a stiff fine.

26. Created in 1970 Enforces laws that protect our environment. Makes sure businesses safely discard hazardous waste produced during manufacturing. Also sets standards for air quality Example: BP Oil Spill- well blew out In response to the BP oil spill, EPA monitored air, water, sediment, and waste generated by the cleanup operations.

27. Created in 1972 to protect consumers from dangerous products. Has power over ALL consumer products. They can set safety standards for any consumer product and ban those that it considers to be hazardous. CPSC Web Site Names products that have been recalled Lists hazardous products based on data collected from emergency rooms Recalls- News Story Product Recalls http://www.youtube.com/watch?v=Fli- 5yI0CU4&list=UUeoiFCC2wVc0f8dScwtvsgw&feature=c4-overview http://www.youtube.com/watch?v=Fli- 5yI0CU4&list=UUeoiFCC2wVc0f8dScwtvsgw&feature=c4-overview

28. http://www.youtube.com/watch?v=ult6Biaf7oM http://www.youtube.com/watch?v=mvyItuuXbLM&list=UUeoiFC C2wVc0f8dScwtvsgw http://www.youtube.com/watch?v=mvyItuuXbLM&list=UUeoiFC C2wVc0f8dScwtvsgw http://www.youtube.com/watch?v=6Bvwtr6mdF0 http://www.youtube.com/watch?v=Doyg3QJVXzA&feature=c4 -overview&list=UUeoiFCC2wVc0f8dScwtvsgw http://www.youtube.com/watch?v=Doyg3QJVXzA&feature=c4 -overview&list=UUeoiFCC2wVc0f8dScwtvsgw http://www.youtube.com/watch?v=Hw4uIiXUCY4

29. Ever changing due to changes in the world. Example of a current change: The Wall Street Reform and Consumer Protection Act of 2009

30.  Today:  Your Turn: Read the article. Refer to the list of eight Consumer Rights and Responsibilities and identify where those consumer rights and responsibilities can be found throughout the handout  Monday:  Socratic Seminar: Discuss how this act affects consumers.

31. Pepsi Top 5 Consumer Complaints Lottery Letters

32. A company’s promise that their product will meet specific standards over a given time period, or the company will repair it, replace it, or give you a refund. Warranty Fraud

33. Full Warranty Specific written guarantee. Must promise that it will repair or replace a defective product within a specified time period at no charge. Explains how to file a claim and how to return the product to the business. Limited Warranty Written warrant that does not meet the standards of a full warranty because of specified limitations. (explained in warranty) Must specify coverage period Explain how to make a claim, and promise a solution within a reasonable time period.

34. Unwritten guarantee that the product is of sufficient quality to fulfill the purpose for which it was designed. Example: If you buy a hammer, you expect that it wont break when you hammer a nail into wood. If it does break, you have the right to return it, even if the hammer came with no written warranty.

35. Internet Job Scams! – part 1 (6:13 Minutes)

36. Pressuring consumers to buy a more expensive product than they intended. Example: You see an advertisement for a very low priced DVD player. So you go to Wal-Mart to buy the DVD player and when you get there the sales associate tells you the product isn't really that good and tries to convince you to buy a more expensive model.

37. Item priced below cost to attract you to the store. Sometimes a retailer’s goal is to simply get you into the store. They will price an items below manufacturers price. If you only buy that item, the retailer will lose money on that one item, but if you buy more… they gain! How many times have you gone to the store for that one item and left with 12 items? I know I have!

38. Deliberate deception designed to secure unfair or unlawful gain Cheating the consumer A statement is fraudulent if it meets these two conditions: 1. The person who made the statement must know it is false. 2. The purpose of the statement must be to cause others to give up property that has values, such as money, without fair compensation.

39. A sales practice in which a retailer advertises a product at a bargain price and does not intend to sell a customer that item but rather tries to persuade the customer to buy another item at a higher price. Bait and Switch is against the law. Example: You go into Best Buy to buy an advertised DVD player. You are told by the sales associate that the item is out of stock or sold out. Then, the sales person leads you over to a much better, more expensive, available DVD player.

40. Type of financial fraud in which people pay to join an organization in exchange for the right to sell memberships to others. People at the top of the pyramid convince new people to send money to join. Those people then have to recruit others and are promised large sums of money. At the end the pyramid falls apart and the only people who get the big payoff are the people at the top. Pyramid schemes are illegal.

41. Contact is NOT done in person, so it becomes hard to tell if the people behind the scam are legitimate or not. Clues to watch out for when an offer is made to you online or over the telephone: The deal offered seems too good to be true You are asked for your credit card or SS# to verify your identity You must buy something to get something else of greater value for free You are not offered a written contract or sales agreement before you buy You are told you must act immediately or the offer will expire NO method is provided to contact the organization NO information about the organization’s business record is available from independent sources

42. Job Scams – part 2 Job Scams Job Scams – part 3 Job Scams

43. 1. RECOGNIZE IT! 2. Check out unfamiliar companies before buying 3. Ask questions about offers that seem too good to be true 4. Understand the product or service you were buying 5. Make decisions with your head, not your emotions 6. Use the Decision Making Process to evaluate options

45. Resolve the problem, NOT to demonstrate anger Being rude and disrespectful will not get you anywhere! How you will be successful and most likely get a resolution: Have your facts straight Have documentation (sales receipts, warranty) Write down facts about the problem Have a resolution in mind

46. 1.Date and location of transaction 2. Description of what you bought, including model number, color, size, and so on. 3. Product’s price and your method of payment: credit card, check, cash… 4. A specific explanation of what is wrong with the product 5. A statement of how you want the problem resolved. Repaired, replaced, refund? It should be fair to both parties

47. 1.Return to the store Describe problem clearly and honestly to a sales person in the appropriate department or customer service department 2.If that doesn’t work, ask to speak to a manager 3.If that doesn’t work, write to the manufacturer 4.The next step would be to contact a consumer group or professional organization such as the BBB 5.If all else fails you may want to consider a lawsuit

48. Organizations that help consumers resolve problems Nonprofit organization The BBB helps consumers in the following ways: Helps resolve disputes between consumer and sellers Keeps a file of complaints against local businesses and supplies this information to consumers who ask for it Educated consumers Promotes honest advertising and selling practices

49. An impartial third-party will hear both sides of a dispute and will make a decision When consumers sign binding mandatory arbitration (BMA) agreements, they give up their right to sue if they have a dispute with the firm. They must accept the decision of the arbitration board no matter what it is.

50. Specified period of time within which a consumer can back out of an agreement to buy something. Usually 3 days from the day the purchase was made The FTC made a rule that consumers can cancel contracts they have signed within 3 days of signing. Protects consumer from High pressure situations and door to door salespeople

51. Il Attorney General Social media

52. A court that handles suits for small dollar amounts without the service of a lawyer In most states, the range is from $1,000 to $10,000 Advantages You don’t need a lawyer (they are actually not allowed) Court costs are low, usually under $250 Most cases resolved quickly

53. Take all info to courthouse Clerk will tell you how to proceed Be sure to exhaust all options before deciding to sue If you don’t win, you may be required to pay defendant’s cost Even if the court rules in your favor, you may still have problems getting the defendant to pay. In this case, you may need to hire a lawyer and take case to a high court If loss is small, it could cost you more than you might win Think about if it is worth it!