1. Chapter 24 Consumer Protection and Global Product Safety

2. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.24-2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Caveat Emptor The traditional guideline of sales transactions “Let the buyer beware.”

3. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.24-3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Food, Drug, and Cosmetic Safety The Food, Drug, and Cosmetic Act (FDCA) is administered by the Food and Drug Administration (FDA). FDCA provides a basis for the regulation of the testing, manufacture, distribution, and sale of foods, drugs, cosmetics, and medicinal products in the U.S.

4. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.24-4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Regulation of Food FDCA prohibits shipment, distribution, or sale of adulterated food. Labeling FDCA prohibits false and misleading labeling of food products. The Nutritional Labeling and Education Act requires disclosure of calories from fat, amount of dietary fiber, and other substances.

5. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.24-5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Regulation of Drugs The FDA has authority to regulate the testing, manufacture, distribution, and sale of drugs. The FDA has power to license new drugs in the U.S.

6. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.24-6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Regulation of Cosmetics Cosmetics include substances for cleansing, altering the appearance of, and promoting the attractiveness of a person. FDA requires cosmetics to be labeled, disclose ingredients, and contain warnings if they are dangerous to health.

7. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.24-7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Regulation of Medicinal Devices Medicinal Device Amendment to the FDCA gives FDA authority to regulate medicinal devices such as heart pacemakers, kidney dialysis machines defibrillators, surgical equipment and other devices.

8. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.24-8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Product Safety The Consumer Product Safety Act created the Consumer Product Safety Commission (CPSC). CPSC regulates potentially dangerous consumer products. CPSC can require a manufacturer to recall a product or take other corrective action.

9. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.24-9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Unfair and Deceptive Practices Prohibited by Section 5 of the Federal Trade Commission (FTC) Act Unfair and deceptive practices include: False and deceptive advertising Bait and switch Door-to-door sales – state laws may require a cancellation period for the consumer to rescind the sale.

10. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.24-10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Do-Not-Call Registry The FCC and the FTC enacted administrative rules that created the “Do- Not-Call” Registry. Telemarketers have 3 months from the time of phone number registration to remove the registered phone number from their call lists.

11. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.24-11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Global Product Safety Countries in addition to the United States have adopted laws that protect consumers from unsafe products and unscrupulous business practices.

12. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.24-12