Government and Consumer Protection

1. Government and Consumer Protection Chapter 3, 3.2

2. Federal Trade Commission (FTC) Created in 1914 Protects consumers from unfair business practices (esp. labels & advertising) Issues “cease and desist orders” Most cities have local office

3. Consumer Product Safety Commission (CPSC) Created in 1972 Protects consumers from dangerous products Has power over ALL products Sets safety standards, and bans items considered hazardous Provides data to consumers about safety

4. Environmental Protection Agency (EPA) Created in 1970 Enforces laws that protect environment Ensures safe disposal of waste, sets standards for air/water quality Businesses may have to add special equipment to comply, increasing prices

5. State and Local Protection Often state requirements are more stringent than federal, and offer consumer departments at the state level

6. Warranties Helps businesses gain trust of consumers Reduce risk to consumers Warranty only works if company backs it up

7. Magnuson-Moss Warranty Act(Specifies how warranty must be written, if there is one) Full Warranty limited Warranty • Specific and written • Repair/replace defective items within a specified time period (no charge) • Explain how to file claim • Written warranty with limitations • Often has expiration of coverage • Must promise solution and explain how to file claim

8. Implied Warranties Unwritten guarantee Offers you right to return even without written warranty