Consumer Rights and Responsibilities

Part I: Consumerism

Consumerism Vocabulary• Consumer: A person who buys and uses

goods and services• Goods: a product you buy that is tangible

(you can touch/feel it)• Services: intangible; the action of doing

work in exchange for payment• Economy: A word representing the

relationship between consumer confidence, their spending habits, the level of unemployment, and media reports

Consumerism Vocab

• Needs: Something you must have; something that is essential or very important

• Wants: Something you desire• Income: The amount of money you receive • Budget: A plan for spending and saving the

money you have available

Introduction to Consumerism

• Chapter 13.1 in Textbook; outline• Video-History of Consumerism

Part II: Advertising

Advertising• Intro Video: Cracking the Advertising Code• Target Market: A similar group of people

at which companies aim products towards• Advertising Strategies: Different

techniques used by advertising firms to target different consumer groups

Examples: famous people, emotion (shock, humor, romance, etc) certain colors, logos, icons, cute appeals, giveaways, discounts, contests, slogans, etc

Advertising

• Advertising Methods- Ways to advertise on a variety of resources

Examples-newspaper ad, magazine ad, TV commercial, radio commercial, billboard, flyers, postcards, telemarketing calls, objects/clothing, internet, signs, people

Advertising

• Logo-an advertising strategy involving a symbol or small design or picture that is associated with a company

• Icon-an advertising strategy involving the use of a cartoon or real characters, humans or animals, that help promote a product or company

Part III: Consumer Right to Choose

Consumer Right to Choose

Consumers must have choice to pick from in the marketplace. There must be competition in the marketplace. Under our economic system, competition generally increase the availability of a variety of products and services at reasonable prices. This makes our diverse population happy as we all have different wants and needs. The government tries to ensure this competition by forbidding monopolies.

CRTC Vocabulary

• Monopoly: When there is no competition helping to keep prices fair; an instance where one company is the only supplier of a specific product/service; illegal in the United States

• Comparison Shopping: Comparing products, prices, brands, features to get the most value for your money

• Impulse Shopper: A person who buys things without comparing items or really thinking about the consequences of the purchase-they are often dissatisfied Warranty/Guarantee : A promise by the seller to repair or replace a product or a particular part of the product within an amount of time from the date of purchase

CRTC Vocabulary

• Return Policy-the terms that describe how and when unused products can be taken back to a place of purchase

• Consumer Reports-this resource compares and tests products and provides unbiased feed-back to consumers

Questions to Ask…

• Before purchasing the following items, what questions should you ask…• Pet• Jeans• Car• Food

Comparison Shopping

• iPod Activity (Best Buy, Target, Walmart)• Comparison Shopping Online (Computers

and TV)

Part IV: Consumer Right to be Heard

Consumer Right to be Heard

• If you have a fair complaint, complain!• You have the right to reasonable

expectations (goods and services); pursue satisfaction

• NO SCREAMING!!! Complain the right way• Follow the appropriate steps

CRtbH Vocabulary

• Third Party Assistance: People/organizations you can contact to help get satisfaction

• Better Business Bureau- an organization that rates companies and awards a seal ot those that show a high level of consumer satisfaction

Steps to Complain

• Step 1-Take the product and receipt back• Make sure you have a fair complaint. If you

do-don’t put it off! Take the item back to the place of purchase with the receipt. If you have lost the receipt, proceed (but it may be tougher). If you ordered online/catalog---call customer service

Steps to Complain

• Step 2-Go to and talk with Customer Service• At the place of purchase, ask to speak to

customer service. Know exactly what you want (exchange or refund). Explain the problem clearly and CALMLY. Do not act insulting or threatening. Hopefully you will get what you want. If not, ask to speak to a manager.

Steps to Complain

• Step 3-Talk to the Manager• Speak to the manager…Again, explain the

problem clearly and calmly. Do not act insulting or threatening. Hopefully the manager will give you what you want. If not, politely ask for his name (and the customer service person). Document everything---make a written note of all you have done up to this point

Steps to Complain

• Step 4-Complaint Letter• Contact the store headquarters. Do this by

phone or better yet, a complaint letter. Again, remain pleasant but firm in your request. Make sure you mention all the dates/names from your previous actions. Also, include that you will seek 3rd party assistance if you do not get what you want. 9/10 times a written letter will get you what you want

Steps to Complain

• Step 5-Third Party Assistance• Seek third party assistance if you do not receive

satisfaction. Use the appropriate assistance according to the details of your specific case. You must become your own consumer advocate. Help other consumers avoid the same problems. Unless you speak out, nothing will change

Third Party Assistance

• Contact an Agency or Organization• Example: Better Business Bureau, Federal Trade

Commission, National Bureau of Standards, Consumer Affairs Council, American Society for Testing Materials, Consumer product Safety Commission

• File a claim in Small Claims Court• Costs $, must be 18 or bring a parent, for claims under

$8,000

• Hire a Lawyer• Must pay them; for claims over $8,000

Complaint Letter• Part 1-Heading

• Writer’s home mailing address with date• Part 2-Inside Address

• Name of person you are writing to, the business, and their address• Part 3-Salutation

• Dear… (end with a colon)• Part 4-Paragraph #1

• Details of your purchase…What did you buy, when did you buy it, where did you buy it, how much did you pay, and why did you buy it. NO PROBLEMS

• Part 5-Paragraph #2• Facts related to what went wrong, names and dates of when you spoke with

customer service and manager• Part 6-Paragraph #3

• What do you want (exchange or refund), state a time frame; mention 3rd party assistance, end on a positive note

• Part 7-Closing• Sincerely (your name)

Your turn!!!

You and your partner/group will write a complaint letter. Think of an item you have or will be purchasing for your dorm room (example: tv, computer, accessories, etc)

Part V: Consumer Right to be Informed

Consumer Right to be Informed

• Government required information must be clearly stated and easily found. Your right to information is guaranteed by federal and state laws and regulations. It is your responsibility to locate and use required product information. If you chose to be uninformed you might be injured physically or financially by your purchase. Consumers must be given the accurate information they need to make wise choices and to be protected from false advertising, mislabeling, and misrepresentation. Much of the information that could help you as a consumer is found on product advertising and on package labels. Magazines such as Consumer Reports, and comparison shopping websites can point out features and other information about products. If advertising claims you read or hear are not necessarily true, a disclaimer statement must be present

CRtbI Vocabulary

• Disclaimer Statement: A statement releasing the company of responsibility

• Fine Print: A part of an agreement or document that spells out restrictions and limitations often in small print

• Contract: A business arrangement for the supply of goods and services at a fixed rate; a binding agreement between two or more persons or parties

Product Information

• Where to find product information• Websites• Product Guides/Manuals• In-Store (from salesperson)• Magazines/Newspapers• Word of Mouth

Nutrition Labels

Care Labels

Right to be Informed Review

• What should we limit?

• What should we get enough of?

• Why do we need to pay attention to the serving size?

• What part of the label does not change?

Right to be Informed Review

• Why is it important to read clothing care labels?

• If we don’t follow instructions, what could happen?

• What else besides clothing do you think has a care label on it?

Right to be Informed Review

• What do these symbols mean?

Part VI: Consumer Right to Safety

Consumer Right to Safety

• Products must be tested and meet safe standards. NO government can ever completely protect its consumers. There are three United States federal agencies responsible for our consumer safety. They are the Department of Agriculture, the Food and Drug Administration, and the Consumer Product Safety Commission. Almost any product used incorrectly has the potential to harm someone. These agencies weigh the potential benefit of using a product correctly against the potential risks and either “pass” or “reject” the product from being sold.

CRtS Vocabulary• Product Recall: A request going out to

buyers asking them to return an unsafe product to the manufacturer

• Consumer Product Safety Commission-an organization that requires products to be tested to check for safety

• Federal Trade Commission-a government organization that supports consumer rights and tires to keep them protected gainst false advertising, scams, fraud, and identify theft

Government Agencies

• Department of Agriculture• http://www.usda.gov/wps/portal/usda/usdahome

• Food and Drug Administration• http://www.fda.gov/

• Consumer Product Safety Commission• http://www.cpsc.gov/en/

Product Recall Information

• Where to find recall information online• http://www.foodsafety.gov/index.html• Store Websites (ex: www.target.com )

Product Manuals

• Find safety information in manuals/user guides• Ex: Xbox (

http://support.xbox.com/en-US/xbox-360/manuals-specs/manual-specs )