Customer Rights and Responsibilities

1. Customer Rights and Responsibilities Introduction to Business and Marketing

2. Objectives • Describe seven protections that are included in the Consumer Bill of Rights • Describe the responsibilities of consumers

3. The Main Idea • Consumers are protected by the Consumer Bill of Rights • The bill states that consumers have: • the right to be informed • the right to choose • the right to safety • the right to be heard • the right to have problems corrected • the right to consumer education • the right to service

4. But…… • Along with your consumer rights, you have responsibilities. • You must • use information provided to you • choose carefully • use products safely • learn consumer skills. • It is your responsibility to speak out and seek a remedy when problems occur.

5. The Consumer Bill of Rights In 1962, President John F. Kennedy outlined what he called the Consumer Bill of Rights. The Consumer Bill of Rights stated that every person has four basic consumer rights. • the right to be informed • the right to choose • the right to safety • the right to be heard

6. Consumer Movement • Consumer rights received a lot of attention from the consumer movement. • A movement to pass laws protecting customers from unfair and unsafe business practices

7. The “New” Consumer Bill of Rights Three other consumer rights that have been added are: • The right to have problems corrected • The right to have consumer education • The right to service

8. The Right to Be Informed Businesses are required to provide certain details about their products. Example: • Drug companies must list the all contents of every medicine • Clothing manufacturers must list all fibers used • Packaged food must list all ingredients and possible allergens

9. The Right to Choose A lack of competition in the economy hurts consumers. The federal government can use antitrust laws to break up monopolies or keep them from forming.

10. A product your company makes has a slight design flaw. You are the only one who knows about the problem, and the chances of it causing someone harm are negligible. The warning label that was printed does not address the design flaw. To reprint the warning label would put this product over budget. Decision Making Would you have the warning label reprinted? Explain your answer.

11. Answer • It is important that businesses respect product safety and the consumer’s right to be told of any possible danger. • There is an ethical obligation companies have in protecting the consumer. • In the case of product safety the negligence can lead to legal liability.

12. The Right to Safety Product liabilityensures the consumer’s right to safety. The U.S. Consumer Product Safety Commission enforces product-safety standards. Companies must make sure their products are safe and will not harm their customers • Lead paint from China

13. The Right to Be Heard You have the right to let a business know if you are not satisfied with a product or service. The purpose of a customer service department is to listen to the concerns of customers.

14. The Right to Have Problems Corrected If a business cannot or will not correct a problem, consumers can contact the manufacturer. If the manufacturer will not help, the next step is to contact a government agency.

15. Consumer Resources Consumer.gov is an online resource for consumer information from the federal government. It is designed so that consumers can locate information by category—such as food, health, product safety, money, and transportation.

16. The Right to Consumer Education Consumers have the right to comparison shop to find the best buys. Check the information required by law on labels, and read fact sheets about products.

17. The Right to Consumer Education Some businesses do not operate in the best interests of the consumer and may try a tactic known as bait and switch.

18. The Right to Service Customers have a right to: • Be treated in a respectful and courteous manner • Expect prompt delivery of goods or services that meet the standard of quality a business claims • Be served without discrimination on the basis of race, gender, income, or age

19. Your Responsibilities as a Consumer As a consumer, you have the responsibility to read information about a product and to use a product the way it is intended. Dangers!! • Medicine • Inhalants

20. Who Is Responsible? Some consumers have sued a leading fast-food giant because of the contents and preparation of its food items. Some states have also sued the tobacco industry because of the contents of its products and its sales tactics. In both instances, the complaint was that the products contributed to some consumers’ poor health.

21. The Responsibility to Be Informed • Responsible consumers read product labels. • Product labels can tell you the ingredients of food products and how clothes should be cleaned. • Some consumers read fact sheets from the U.S. Consumer Product Safety Commission. • The fact sheets tell how a product is rated on safety, performance, and value.

22. Making Educated Choices The J.D. Power Web site offers valuable information for consumers.

23. The Responsibility to Choose Carefully Responsible consumers: • make comparisons to find the best product or service at the best price • make choices that are good for the environment and reduce pollution • practice conservation by being aware of limited resources and adjusting consumption

24. The Responsibility to Use Products Safely Consumers must follow the instructions provided in product manuals. Consumers must also follow the directions on labels.

25. The Responsibility to Speak Out Consumers have the responsibility to let businesses know when they are not satisfied with its products or policies. Reporting unfair, unsafe, and illegal business practices helps protect other consumers.

26. The Responsibility to Seek a Remedy Consumers have a responsibility to seek a remedy for a defective product. When seeking a refund or exchange, you must bring back the item, the receipt, and any warranties or guarantees that came with it.

27. The Responsibility to Learn Consumer Skills The more informed you are about products and services, the better your consumer decisions will be.