Chapter 15

Consumer Rights & Responsibilities

Warm-Up

What do you think you have the right to expect from the products you buy and the companies that sell them to you?

What responsibilities do you have in return?

Information Sources for Consumers

Product Testing Organizations Test products for benefit of consumer and business

Media Sources Print Broadcast Internet

Information Sources for Consumers

Government Agencies Federal, State, Local Agencies available

Business Sources Advertising Labels Customer Service Departments Better Business Bureau

Personal Contacts Friends Family Co-workers

Information Sources for Consumers

Consumer Reports #1 magazine that reports the strengths and weaknesses

of many different brands of products

Federal Agencies

United States Department of Agriculture (USDA) Inspects and grades meat and other food

Federal Agencies

Federal Trade Commission (FTC): protects consumers from unfair business

practices

http://www.ftc.gov

Federal Agencies

Food and Drug Administration (FDA) Ensures that foods are safe, wholesome

and sanitary Human and veterinary drugs Biological products (blood), and medical

devices are safe and effective Cosmetics are safe Electronic products that emit radiation are

safe http://www.fda.gov

Federal Agencies

Consumer Product Safety Commission (CPSC): Protects consumers from dangerous

products

http://www.cpsc.gov

Federal Agencies

Environmental Protection Agency (EPA): Enforce laws that protect the

environment

Advertising

Any type of paid communication by a business about a product, service, or company

Types of Ads

Persuasive Advertising The most common type of advertising –

to appeal to your emotions to influence you to buy the product or service

Types of Advertising

Comparison Advertising offers comparisons of other

products to learn what the advertiser considers the best quality

Informative Advertising designed to influence you to buy a

product by educating you

Warm-Up

What is your favorite advertisement. What makes you like it? Does this ad influence you to buy the product or go to that company?

Types of Advertising

Deceptive Advertising Deliberately designed to mislead you

If an ad contains wrong facts or statements these are deceptive and illegal

Puffery legal exaggeration

Example our product is better

Advertising Activity ExamplePuffery:

The most refreshing thirst-satisfying drinkThe One the Only Diet Coke

Informative

Diet Coke does not add anything to it’s soda, except great taste.It has zero calories, zero carbs, zero fat, and only 40 mg of sodium. All the great flavor without anything else; The one, the only Diet Coke.

Advertising Activity Example

Persuasive:

Want to fit into those “skinny jeans?” Switch from Coke to Diet CokeFor zero calories but all the flavor, it will have you in those jeans in no time.

Advertising Activity Example

Comparison:

Diet Coke vs Diet PepsiOnly one has the most flavorWith no after taste

The One, the only, Diet Coke

Comparison Shopping

Compare Pricing Unit Price

Price per unit of measure Example: if a 16 ounce bag of one bag of frozen

corn is $1.26 and an 8 ounce box of another brand is $0.69, which is the better buy? 1.26 ÷ 16 = .0787 or 7.9 cents 0.69 ÷ 8 = .0862 or 8.6 cents

Comparison Shopping

Brand Name given to a product or service to

distinguish it from other similar and competitive items

Not so Wise Buying

Impulse Buying Purchasing on a whim

Buying too quickly

Warm-Up

Why do you think most business people like to have well informed customers?

When would you consider an impulse purchase a harmless activity?

Government/Consumer Protection

Consumerism: The Consumer Movement seeks to protect & inform consumers

by requiring honest ads, warranties and safety standards

Consumer Bill of Rights

Right to be Informed: businesses must give accurate

information Responsibility for Right to be

Informed: Use information to choose a

product

Consumer Bill of Rights

Right to Safety: Products can’t hurt consumer’s

lives or health Responsibility for Right to

Safety: Use products safely follow directions for use

Consumer Bill of Rights

Right to Choose: Business should give a variety

Responsibility to Right to Choose: Choose carefully Use the rational decision

making process

Consumer Bill of Rights

Right to be Heard: Government must consider

consumers’ interest when making laws

Responsibility for Right to be Heard: Express Satisfaction or Dissatisfaction report bad businesses

Consumer Bill of Rights

Right to Redress: Seek a fair remedy (solution)

Responsibility to Right to Redress: Seek Redress tell businesses of bad products &

ask them to solve the problem

Consumer Bill of Rights

Right to Consumer Ed: Information must be made available to

consumers Responsibility to Right to Consumer Ed.:

Be an Educated Consumer Gather information and make an informed

decision

Consumer Bill of Rights

Right to Service Convenient, courtesy and responsiveness

to consumer problems and needs Responsibility for Service

Show appreciation for good service by patronizing businesses that provide it

Warm-Up

Which is a more reliable information source, advertising or a product label? How do you know?

Warm-Up

Why is it important for consumers to have choices? Remember to answer this question in

complete sentences.

Definitions

Redress: a remedy (solution) when a

product doesn’t live up to your expectations. Ex: return for $ back or

exchange the item

Some Definitions

Monopoly a company which has an unfair

advantage over competitors. Example: cable company

Warm-Up

If you have a problem with a product, what’s the first step you should take? What will you do if you do not get a resolution with that first step?

Guarantee

a company’s promise that the product will meet standards over time or the company will repair or replace it

Express Warranty

Oral or written promise for a specific quality of performance

Implied Warranty

Unwritten guarantee Imposed by law that certain

standards are met

Resolve Problems

Get your facts straight Start a file of the complaint Get your receipt & warranty

Go back to the seller Be calm and accurate Keep record of your efforts

Don’t Give Up Go to the company headquarters

Tell them what you think is a fair solution Be sure to be fair

Steps to Resolve Problems

Step 1 - Start with the Seller store salesperson manager

Step 2 - Write Manufacturer Step 3 - Tell Better Business

Bureau Step 4 - File a Lawsuit (last resort)

Warm-Up

Why is filing a lawsuit the last resort or step in the complaint process?

Government Helps Consumers

Mediation Third party who tries to resolve the

complaint between the consumer and business Not legally binding

Arbitration Decides on a solution after hearing from

both parties Legally binding

Better Business Bureau (BBB)

Non profit, help resolve consumer problems resolves problems keeps a file of complaints and gives

the info to consumers Educates consumers promotes honest ads

Court Action

Class Action Suit Legal action by one party on behalf of a group of

people who all have the same grievance.

Small Claims Court Advantages

Don’t need a lawyer Costs are low Most resolved quickly

200 S. SheldonRantoul, IL 61866

Dear Nike:

On September 1, 2009 I bought a pair of Nike Running Shoes from Finish Line at Market Place Mall in Champaign, IL. On September 5th, after running in them twice, the sole came apart. I took the shoes back to the Finish Line, on September 6th and spoke to the manager, Joe Smith. He said he could not refund or exchange the shoes.

I would like a refund for the shoes. I have enclosed a copy of my receipt and picture of the shoes. You can reach me at 217-892-2151 or vconlin@rths.k12.il.us.

Sincerely,

Vickie Conlin

200 S. SheldonRantoul, IL 61866

Dear Nike:

I bought a pair of Nike Running Shoes on September 1, 2009 from Finish Line, Market Place Mall in Champaign, Il. I ran in the shoes two times and the sole came apart. This happened on September 5, 2009. On September 6, 2009, I went back to the Finish Line and spoke to Joe Smith, manager and asked for an exchange. He said he could not refund or exchange my shoes.

I would like an exchange for my shoes. I have enclosed a copy of my receipt and a picture of the shoes. You can contact me at 217-892-2151 or vconlin@rths.k12.il.us.

Sincerely,

Vickie Conlin

Warm-Up

Answer the matching questions on page 393

Warm-Up

Complete the Chapter 15 Crossword