1. CONSUMER EDUCATION Chapter 3 Consumer Protection

2. Consumer Rights and Responsibilities  Consumer Bill of Rights (7)  Right to Safety – Products must not endanger consumers’ lives or health (ex. recalls) Right to Safety consumershealthex. recalls  Right to be informed – Businesses must provide accurate information in advertising, labeling and sales practices. (Ex. Food labeling in Jewel) Right to be informed advertising  Right to choose – Consumers must have a variety of goods and services from which to choose.

3. Consumer Rights and Responsibilities continued..  Consumer Bill of Rights (7) continued..  Right to be heard – The government must consider consumer interests when creating laws. (Ex. Lobby) Right to be heard Lobby  Right to redress – Consumers should be able to obtain fair remedies to consumer problems. (Ex. Legal action) Right to redress Ex. Legal action

4. Consumer Rights and Responsibilities continued..  Consumer Bill of Rights (7) continued..  Right to Consumer Education – Sufficient information should be available for consumers to make rational decisions. Right to Consumer Education  Right to a healthy environment – Businesses should avoid polluting the environment and should contribute to the welfare of the community in which they operate. Right to a healthy environment

5. DENTIST LAPBAND TSA AGENTS SCARED TO DEATH EVIL NEIGHBOR TRAVEL BED Recap What Right Is It?

6. Consumer Rights and Responsibilities continued..  Consumer Responsibilities (7)  Responsibility to Use Products Safely – Consumers should use products the way the manufacturer meant it to be used. Responsibility to Use Products Safely  Responsibility to Use Information – Consumers are responsible for using the information to evaluate product choices. Responsibility to Use Information  Responsibility to choose carefully – Consumers should take advantage of product variety and by considering many options and making rational choices. Responsibility to choose carefully

7. Consumer Rights and Responsibilities continued..  Consumer Responsibilities (7) continued..  Responsibility to express satisfaction or dissatisfaction – consumers should tell their elected officials their opinions on consumer issues and inform them of improper business practices.

8. Consumer Rights and Responsibilities continued..  Consumer Responsibilities (7) continued..  Responsibility to seek redress – Consumers should inform businesses of product defects and unfair practices. Responsibility to seek redress

9. Consumer Rights and Responsibilities continued..  Consumer Responsibilities (7) continued..  Responsibility to be an educated consumer – consumers should take advantage of opportunities to gather information and learn how to make rational buying decisions. Responsibility to be an educated consumer gather  Responsibility to contribute to a healthy environment – consumers should support businesses that operate responsibly and report environmental abuses.

10. Government and Consumer Protection  Consumer movement – seeks to protect and inform consumers by requiring such practices as honest advertising, product warranties, and improves safety standards.

11. Government and Consumer Protection continued..  Government protection  Federal Trade Commission (FTC) – Responsible for protecting consumers from unfair or deceptive business practices. Ex False advertising Cease-and-Desist order  Consumer Product Safety Commission (CPSC) – Responsible to protect consumers from dangerous products.

12. Government and Consumer Protection continued..  Government protection continued..  Warranties Warranty Full warranty Limited warranty Implied warranty

13. Deception and Fraud  Deception  Trading up  Loss leader  Fraud  bait and switch  Pyramid Schemes Pyramid Schemes  Telephone Fraud

14. Deception and Fraud continued.. Resolve Consumer Problems  Making Complaints (letter) Making Complaints (letter)  Date and location of transaction  A specific description of the product you purchased  Product price and method of payment  A specific explanation of what is wrong with the product.  A statement of how you want the problem resolved.

15. Deception and Fraud continued.. Resolve Consumer Problems continued  The complaint process at the place of business  pg 110 – 111  Help from Consumer Organizations  Better Business Bureau (BBB) Helps resolve disputes between consumers and sellers Keeps files of complaints on local businesses. Educates consumers with tip sheets and info on internet. Promotes honest advertising and selling practices.

16. Deception and Fraud continued.. Resolve Consumer Problems continued  Arbitration  Cooling off periods  Small claims court. No lawyer needed Costs are low Quick resolutions