Consumer IssuesChapter 28

Objectives

Explain the role, rights, and responsibilities of consumers.

Evaluate sources of consumer information.

Outline the process of making a consumer complaint.

Identify ways to protect your privacy and prevent identity theft.

Describe common types of consumer fraud.

Give guidelines for being a responsible, considerate consumer.

Key Terms

Consumer

Redress

Small claims court

Identity theft

Fraud

Pyramid scheme

Chain letter

Return policy

Shoplifting

Role as a Consumer

Consumer – someone who buys and sues products and services.

Through your buying decisions you are determining what goods and services are being offered.

Influences on Consumer Spending

What are your wants and needs?

How does family, friends, and advertising shape how you spend your money?

Other influences could be cultural, and society.

Redress – seek legal remedy when laws are violated.

Consumer Rights and Responsibilities

Rights Right to safety

Right to be informed

Right to choose

Right to be heard

Right to redress

Right to consumer education

Right to service

Responsibilities Responsibility to use products

safely

Responsibility to use information

Responsibility to choose carefully

Responsibility to speak up

Responsibility to seek redress

Responsibility to learn

Responsibility to reward good service

Activity

You bring back a calculator that doesn’t work when you take it home.

A supermarket discards food that has passed its expiration date.

A city inspector makes sure that a gas station’s pumps accurately count the number of gallons pumped out.

Sources of Consumer Information

Government Agencies

Consumer Organizations

Media Sources

Advertising

Packaging

Salespeople

Research Studies

Other Consumers

Evaluating Information

Consider the Source

Look for signs of bias

Distinguish between opinion and fact

When in doubt, check it out

Activity

What source would you use to get information about the following:

Comparison on different brands of a product. Example: cell phone

Quality of care provided by a local physician.

Nutrients in a food product.

Prices in a clothing sale.

Making a Complaint

In person – have item, receipt and other information handy

By phone – same as above

In writing – when either going in person or by phone, write a letter to the company. Be detailed, and polite and state the problem.

Taking Further Action

Business Groups – BBB

Government Agencies – listed in the phone book

Legal Action – Small claims court

Identity Theft

How does it happen? Steal your wallet or purse.

Steal your mail.

Complete a change of address form.

Retrieve discarded papers from trash.

Watch over your shoulder.

Obtain information from receipts that you leave behind

Steal personal information from internet.

Steal records from business.

Pose as a representative of a bank or government agency.

Identity Theft

What you can do. Don’t give out your Social

Security Number

Don’t give personal information over the phone, e-mail.

When you need to give secure information over the internet, make sure the website is secure

Tear up or shred financial documents

Change computer or online passwords frequently

Keep items with personal information locked away

Make sure no one is watching when using an ATM

Guarding Against Fraud

Telemarketing Fraud

Pyramid Schemes and Chain Letters

Pyramid Scheme is a get-rich-quick plan. Never work because they cannot sustain large amounts of participants.

Chain letters – an email or mail message that encourages people to send copies of the letter to a certain amount of others along with money.

Internet Fraud

Uses internet to conduct fraudulent transactions.

Activity

What damage can a person suffer from identity theft?

Taking Action

Individuals or business that will not reveal their location.

Insistence that payment be made before information can be sent out.

High-pressure offers that are “good for today only.”

Any offers that seem too good to be true.

Acting Responsibly

You would expect a business to act fairly and honestly towards you, you should act fairly and honestly towards businesses.

Be considerate to those around you, including employees. If there is a problem, speak with the manager.

Return Policy – rules for returning merchandise.

Shoplifting – theft of merchandise from a store by shoppers.

https://www.youtube.com/watch?v=ziHI8htZV5g