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Consumer Protections

Consumer Protections. http://www.nbc.com/saturday-night-live/video/irwin-mainway/1185611/. Consumer Movement. A movement by the public to promote the interests of consumers. Consumer Movement. First Era Dr. Harvey Wiley – (1880s) Mislabeled foods and drugs Food and Drug Act of 1906.

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Consumer Protections

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  1. Consumer Protections http://www.nbc.com/saturday-night-live/video/irwin-mainway/1185611/

  2. Consumer Movement • A movement by the public to promote the interests of consumers.

  3. Consumer Movement First Era • Dr. Harvey Wiley – (1880s) • Mislabeled foods and drugs • Food and Drug Act of 1906. • Upton Sinclair – (1900s) • The Jungle • Meat Inspection Act of 1906.

  4. Consumer Movement Second Era • Stuart Chase and F.J. Schlink (1927) • Your Money’s Worth • Misleading advertising. • Rachel Carson • Silent Spring • Pesticides on songbirds • Environmental laws

  5. Consumer Movement Third Era • Ralph Nader • Unsafe at any Speed (1965) • Car defects • “Most influential consumer advocate in U.S. history”

  6. Consumer Agencies • Federal Trade Commission (FTC) • Protecting consumers from unfair business practices such as misleading information in advertising or labels

  7. Consumer Agencies Consumer Product Safety Commission (CPSC) • Protects consumers from dangerous products. • Examples: toy and home goods Environmental Protection Agency (EPA) • Protects the environment • Sets standards for business

  8. Consumer Agencies • Food & Drug Administration: (FDA) • Dept. of Agriculture: (USDA) • Inspects all produce & meats • Security & Exchange: (SEC) • Regulates financial markets & credit • National Highway Traffic Safety Assn. • Regulates all cars and roads • Federal Communication Commission: (FCC) • Radio, TV, Satellite and Cable

  9. Name The Agency!!! Do We Need Them?

  10. Name that Agency! A tobacco company just released a new brand of cigarettes they claim will give you energy after smoking. The box advertises that smoking one cigarette is like drinking three Red Bulls. Of course this is not true. Federal Trade Commission

  11. Name that Agency! A toy company releases a new product called Fun with Fire, a kit that lets kids build Molotov Cocktails and other explosive devices. Consumer Product Safety Commission

  12. Name that Agency! Ford just released a new sports car that is the fastest production car every made, however, the car is known to burst into flames once it reaches 80 mph. National Highway Safety Association

  13. Name that Agency! Tony, a meat-processing worker, accidently falls into a meat-grinding machine and quickly becomes ground beef. Throwing the meat away and cleaning the machine will cost thousands of dollars. So the clever company decides to continue production and markets the meat as “Italian Flavor”. Department of Agriculture: USDA

  14. Name that Agency! A cosmetic company just released a new eyeliner color called “Fire” - its main ingredient: Tabasco sauce. Food & Drug Administration

  15. Name that Agency! Al Roker of the Today Show has now decided he will do the morning weather report in the nude. When asked why, he replies, “it just feels right”. Federal Communication Commission

  16. Warranties • Implied warranty – Unwritten guarantee consumers should expect. • Product should do what its intended for. • Express warranty • A statement which presents a specific quality of performance feature of a product • “As-Is” Products • No warranty provided • Used goods

  17. Better Business Bureau Nonprofit organization created to help consumers and business • Assist with resolving issues • Keeps records of complaints • Educate consumers http://chicago.bbb.org/

  18. Consumers Unions • Non-profit companies that tests products and rates them on the basis of their quality. • E.g. Consumer Reports Magazine

  19. Underwriters Laboratories • Checks products for safety from fire, electric shock and other hazards.

  20. https://www.youtube.com/watch?v=hrb3CMFVeDM

  21. What to watch out for…. Fraud: Lying to a consumer for financial gain Trading-up: Getting pressured to buy a more expensive product Bait and Switch: Luring customers with items that don’t exist with the hope of selling them a more expensive product.

  22. Pyramid Scheme non-sustainablebusiness model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services

  23. Who can help? State Attorney General • Agency that prosecutes those involved in fraud Small Claims Court • Cases heard promptly • Lawyer is not needed • Must be below a $10,000 claim

  24. Smart Shopping… • Comparison shopping (apples to apples) • Look for unit price (.16 per ounce) • Avoid “impulse” shopping

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