Government and Consumer Protection

1. Government and Consumer Protection Chapter 3.2 Page 90

2. The Rise of the Consumer Movement • In the late 1700s states enforced weights and measurement standards • In 1887 the Interstate Commerce Act was enacted to regulate railroads • In the early 1900s Consumerism began as a grass-roots movement • Consumerism grew during the Depression in the 1930s and then exploded in the 1960s

3. The Rise of the Consumer Movement • A Growing Concern • 200 years ago the products were simple • Today we buy products we don’t understand • Foods we eat today are frozen, packaged, and treated with preservatives • A Growing Awareness • Books published in the 1960s brought consumer and environmental awareness • Silent Spring by Rachel Carson • Unsafe at Any Speed by Ralph Nader • The Consumer Movement • Seeks to protect consumers by requiring • Honest advertising • Product warranties • Improved safety standards

4. Government Protection Federal Trade Commission (1914) – • Most important federal consume protection agency • Protects against unfair or deceptive business practices such as misleading information in advertisements or on labels. • When this agency finds an ad that is deceptive it issues a cease-and-desist order. • http://www.ftc.gov/ • 1-877-FTC-HELP (1-877-382-4357)

5. Government Protection Consumer Product Safety Commission(1972) • Protects consumers from dangerous products • First agency to have power over ALL products • Provides data about products to consumers. • http://www.cpsc.gov/ • 800-638-2772

6. Government Protection Environmental Protection Agency (1970) • Enforces laws that protect the environment • Regulates disposal of hazardous waste by businesses • Set standards for air quality • http://www.epa.gov/ • 202-272-0167

7. Government Protection State and Local Protection • Protect consumers in local situations • Usually part of the attorney general’s office • http://www.illinoisattorneygeneral.gov/ • http://www.illinoisattorneygeneral.gov/about/hotlines.html

8. Warranties • Warranty – a company’s promise that the product will meet specific standards over a given time period. • Magnuson-Moss Warranty Act (1975) • Specifies how a warranty is written.

9. Types of Warranties • Full warranty • A very specific written guarantee. • Promises repair or replacement at no cost for a specific period of time. • Must also explain how to file a claim. • Limited warranty • Like a full warranty except with specific limitations • Implied warranty • An unwritten guarantee that the product is of sufficient quality to fulfill the purpose for which it was designed.