Chapter

1. Chapter 3

2. Consumer Rights In 1960, President John F. Kennedy told Congress that consumers were entitled to four kinds of protections: • The right to safety: to be protected against the marketing of goods that are hazardous to health or life. • The right to be informed: to be protected against fraudulent, deceitful, or grossly misleading information, advertising, labeling, or other practices, and to be given the facts to make an informed choice.

3. Consumer Rights 3. The right to choose: to be assured, wherever possible, access to a variety of products and services at competitive prices. 4. The right to be heard: to be assured that consumer interests will receive full and sympathetic consideration in the formulation of government policy, and fair and expeditious treatment in its administrative tribunals.

4. Consumer Rights 5. The Right to Redress- Ability to obtain from the manufacturers adequate payments in money or goods for financial or physical damages caused by their products

5. Reasons for consumer movement • Complex products have enormously complicated the choices consumers need to make when they go shopping. • Services, as well as products, have become more specialized and difficult to judge. • When business tries to sell both products and services through advertising, claims may be inflated or they may appeal to emotions having little to do with how the product is expected to perform. • Product safety has often been ignored.

6. Goals of consumer laws • To provide consumers with better information when making purchases. • To protect consumers against possible hazards from products they may purchase. • To promote competitive pricing and consumer choice. • To protect privacy.

7. Figure 16.1a Major consumer protections specified by consumer laws Information protections • Hazardous home appliances must carry a warning label. • Home products must carry a label detailing contents. • Autos must carry a label showing detailed breakdown of price and all related costs. • Tobacco advertisements and products must carry a health warning label. • Alcoholic beverages must carry a health warning label. • All costs related to real estate transactions must be disclosed. • Warranties must specify the terms of the guarantee and the buyer’s rights. • False and deceptive advertising can be prohibited. • Food and beverage labels must show complete information. • Food advertising must not make false claims about nutrition.

8. Figure 16.2a Major federal consumer protection agencies and their main responsibilities • Consumer Product • Safety Commission • Safety standards for consumer products • Flammable fabrics, hazardous substances, poison prevention packaging • Federal Trade • Commission • Competitive pricing • Deceptive trade practices • Packaging and labeling • Consumer credit disclosure and reporting • Online privacy • Food and Drug • Administration • Safety, effectiveness, and labeling of drugs, foods, food additives, cosmetics, and medical devices • Standards for radiation exposure • Toxic chemicals research

9. Figure 16.2b Major federal consumer protection agencies and their main responsibilities • Department of • Justice • Fair competition • Consumer civil rights • National Highway • Traffic Safety • Administration • Motor vehicle safety standards • Automobile fuel economy standards • National uniform speed limit • Consumer safeguards for altered odometers • National • Transportation • Safety Board • Airline safety

10. Protecting consumer privacy online Consumer self-help Internet users should use technologies that enable them to protect their own privacy. Industry self-regulation Businesses should adopt voluntary policies and technical standards that protect the privacy of individuals’ information. Privacy legislation The government should pass laws that establish minimum privacy standards for collecting information online.