consumer powers and protections

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Consumer Powers and Protections

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Consumer Powers and Protections. Consumer Powers and Protections. The Power of Consumers Protecting Consumers’ Rights Safeguarding Your Privacy Recognizing Deception and Fraud Resolving Consumer Problems. The Power of Consumers. Economic roles of individuals - PowerPoint PPT Presentation

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Page 1: Consumer Powers and Protections

Consumer Powers and Protections

Page 2: Consumer Powers and Protections

Consumer Powers and Protections

The Power of Consumers Protecting Consumers’ Rights Safeguarding Your Privacy Recognizing Deception and Fraud Resolving Consumer Problems

Page 3: Consumer Powers and Protections

The Power of Consumers

Economic roles of individuals Ways that consumers influence the

marketplace Impact of technology on consumers Effective uses of consumer skills

Page 4: Consumer Powers and Protections

Economic Roles of Individuals

Consumer- use goods/services– Consumers have an impact on mktplce

Consumers spend $bus. makes $ee’s make $spend Worker- earn $ at job Citizen- use public services/pay taxes/vote1. How are the roles interrelated? How might a

person fill all three?Draw a diagram that illustrates how decisions made by

individual consumers affect the marketplace.Interview someone who owns a retail store in the

community and ask how the store strives to please its customers through products, services, and atmosphere.

Page 5: Consumer Powers and Protections

Teens as Consumers

Spend $170 billion annually Family buying decisions

– Household shopping– Provide input

How could you help your family make wise buying decisions?

Page 6: Consumer Powers and Protections

Technology and the Consumer

Changes in technology– Communication– Accessing information– Purchasing goods and services

Page 7: Consumer Powers and Protections

Effective Consumers

Set goals– Decide what u want, how to carry out the plan– Set priorities on time, energy and money– Plan for career, education, training

Think critically– Carefully consider alternatives and their outcomes– Avoid acting on impulse– Stay realistic upon encountering persuasive ads/aggressive people

Do their research– Read, observe, ask ?s about options available– Search for reliable businesses– Compare prices, quality, features, and customer service policies

Manage everyday finances– handle income, expenses, taxes, banking, and credit in a responsible way

Plan for financial security– Set plans for savings, investing, and insurance, call professionals for help

Page 8: Consumer Powers and Protections

Protecting Consumers’ Rights

Page 9: Consumer Powers and Protections

Protecting Consumers’ Rights

Consumer rights and responsibilities Identify laws that protect consumers Describe sources of consumer information

and protection

Page 10: Consumer Powers and Protections

The Consumer Movement

Unfair treatmentadvocacy– The power of consumers=economic and political

power of bus and industry

Consumer advocates– St and ntnl levels:

Investigate bus practices Expose unfair or dangerous situations Encourage the passage of laws protecting consumers

Page 11: Consumer Powers and Protections

Consumer Advocates

Harvey Wiley Proved chemicals added to foods were dangerous

Food Drug Act of 1906

Upton Sinclair His novel exposed filthy condtns n meat packing plant

Meat Inspection Act of 1906

Stuart Chase

F.J. Schlink

Published book about misleading advertising

Your Money’s Worth-1927

Rachel Carson Published book about environmental protection (pesticides, insecticides)

Silent Spring-1962Inspired envrnmntl laws

Ralph Nader Published a work regarding defects in cars causing deaths

Unsafe at any speed 1965

Page 12: Consumer Powers and Protections

Think…

What new issues can you think of that must be addressed to protect consumers in the marketplace today?– List 3 in your notes.

Page 13: Consumer Powers and Protections

Consumer Rights and Responsibilities

Consumers have rights! 4 rights identified by JFK in his message to congress

in 1962– Expanded into “Consumer Bill of Rights”

Groups of 2: – Link to Rights/Responsibilities– Create a brochure (rights/responsibilities)– Create skit of a right or responsibility (10 min.)

Complete the sentence:– “I showed consumer responsibility when I ….”

Page 14: Consumer Powers and Protections

Government Protection

Consumers can seek legal remedy when wrongs are done to them– Right to redress (seek remedy for a wrong/loss)

Think….– President Gerald Ford promoted the right to

consumer education, expressing his hope that it would become “an integral part of regular school instruction.”

– What impact does this right have on you?

Page 15: Consumer Powers and Protections

Federal Laws

Link to chart pg. 30 Make flash cards for the federal laws on

chart

Page 16: Consumer Powers and Protections

Federal Agencies

Enforce laws Set up rules and reg’s to ensure compliance Federal Agencies Table

*Some agencies also protect bus’s

Have you ever observed one of these consumer protection laws in action?

Page 17: Consumer Powers and Protections

State and Local Laws

St and local legislators passed laws– To find state and local agencies:

Check govt listings in phone book Visit FCIC-Consumer action website Other websites:

– National Association of Attorneys General– National Association of Consumer Agency Administrators

1. Visit the website of your state attorney generalWhat measures do they take to protect consumers in KY?

2. Find the name of a current piece of consumer legislation in Congress. Write a summary of this bill’s purpose.

3. KY attorney general website: create newsletter from the attorney general Jack Conway informing them of their efforts and anything new they are working on.

Page 18: Consumer Powers and Protections

Other Consumer Assistance

Consumer groups- focused on consumer education, protection, and advocacy

Consumer testing agencies and publications- buy products, test them, report the results

Business and industry groups- (BBB)-provide reliability reports on bus’s & allow consumers to file a complaint

– Consumer affairs departments-bus’s have full-time comm. w/ consumers about their rights/needs

– Consumer action panels-grp formed by trade assoc to address complaints

– BBB website-research a company and a charity News media- warn consumers about local scam artists who try to

cheat consumers (alert consumers about it and what to do)

Page 19: Consumer Powers and Protections

Media Reporter Activity

Assume the role of a media reporter Write a story about a fictitious consumer

complaint

Page 20: Consumer Powers and Protections

Safeguarding Your Privacy

Ways to protect yourself Laws that protect consumer privacy Guidelines for preventing online harassment

Page 21: Consumer Powers and Protections

Identity Theft

Threat to personal security Identity theft- the illegal use of an individual’s

personal information Social Security number-unique 9-digit number

– Do not give it out or carry your card with you– Some agencies ask for it that have no right 2 it

Identity theft: How does it happen?

Page 22: Consumer Powers and Protections

Preventing Identity Theft

Safeguard your SS # Handle mail with care Personal info in locked drawer Safeguard sensitive info on computer with

passwords (#s & letters)- Don’t share or write down where can b found

Don’t give out personal info over phone, through mail, email or web unless initiated

Secure sites-websites that use safeguards (shttp:// or https://)

Secure your home Internet connection Shred personal info

Page 23: Consumer Powers and Protections

If Your Identity is Stolen…..

1. File a report with the police2. Notify your bank and credit card companies3. Close any accounts4. Call the 3 major credit reporting companies

and ask for a fraud alert and no new accounts be opened

1. Equifax, Experian, and TransUnion

5. Call the FTC or visit it’s website for info about resolving problems

Page 24: Consumer Powers and Protections

Data Collection and Privacy Issues

You may have to provide personal info to:– financial institutions, health care providers, insurance

companies – when you buy or register a product

What do the companies do with all of your information?– CC #s –most keep secure– Their own marketing purposes– Sell your info to other retailers– Analyze your surveys for their benefit (product development)

Creat a chart displaying the advantages/disadvantages of having personal info used for each

Page 25: Consumer Powers and Protections

Protecting Your Privacy

Co’s provide choices on how your info is used Law addressing consumer privacy are being

developed– Ex: Financial institutions privacy policy (have to give you a

copy)– Ex: Children’s online privacy protection act-post privacy

policy, get parent permission Who oversees this act?

– FTC Check all companies privacy policies before

providing your info May have right to “opt-out” of info sharing Shred all documents with your info Unsolicited requests for your CC # or info-NO!

Page 26: Consumer Powers and Protections

Online Profiling

OP-practice in which companies collect info about the websites a consumer visits, then use info to predict what you may buy in future

1. How do you feel about websites’ use of cookies to remember info about you?

2. Do you consider this a useful feature or an invasion of privacy?

3. Is it worth the inconvenience to set your browser to reject cookies?

Page 27: Consumer Powers and Protections

Internet Safety

Keep info private in: chat rooms, forums, IM– Anyone can obtain it once its out there!

Cyber-stalking- online harassment – Spread false info about you– Give your email-you will receive threatening emails

Prevent online harassment:– Reveal as little info as possible (gender neutral names and

addresses)– Share email with friends and family only-alternate for online stuff– Watch what you say online-don’t create enemies– Block transmission of mail, chat or IMs from ones you don’t know– Save harassment as proof, tell administrator and law enforcment

Page 28: Consumer Powers and Protections

Recognizing Deception and Fraud

After studying this you should be able to… Recognize examples of deception and fraud Explain how to report deception and fraud

Page 29: Consumer Powers and Protections

Deceptive Advertising

Dec. Advtsg-advertising that is likely to mislead consumers through false statements, omitted info, or other means.– Unfair advantage of consumer– Illegal-FTC empowered to stop it

Page 30: Consumer Powers and Protections

Deceptive Ad. Examples

Bait and Switch-advertises an item but does not sell at that price and offers another

False promise of free gifts-”free gift” must have no strings attached (have to buy to receive gift-not free)

Deceptive pricing-advertise as sale but actually same price

Hidden catches-additional feesprocessing fees, hidden restrictions, etc. Ad has to disclose this!

Activity: Role-play-deceptive ads

Page 31: Consumer Powers and Protections

Fraud

Fraud-deceitful conduct designed to manipulate another person for some gain.– Lying, repeating something known 2b false,

concealing a fact that could have changed dec.– Ex: Give to “charity”person keeps it– Ex: seller sells item they know 2 not work right

Illegal According to US Dept of Justice: 24 mill ppl victimsALWAYS CHECK FINE PRINT!

Page 32: Consumer Powers and Protections

Pyramid Schemes

Pyramid schemes-an illegal get rich quick plan– Try to pass it as a “gift” or a “multi-level marketing plan”

Impossible to sustain Only individuals who start will make money

Search the FTC website for the difference between pyramid schemes and multi level marketing plans

Page 33: Consumer Powers and Protections

Chain Letter

Chain letter- message sent by postal mail or email that instructs the recipient to send copies to a certain number of people

Fraudulent & illegal when:

item of value

item of value

Ex: “Send $5 to 1st person on list, remove name, add your name to bottem, send letter to several people

Page 34: Consumer Powers and Protections

Fraud and Technology

New types of fraud using Internet– Chain letters (email)– Pyramid schemes (websites)

Technology used to combat fraud– “teaser-sites”

Page 35: Consumer Powers and Protections

Warning signs of deception and fraud

Businesses won’t reveal physical location (city and state)

Require u 2 pay up front 2 receive info or opportunities to make $

High pressure sales tactics requiring immediate “today only”

Anything that fits pyramid or chain letter description Exaggerated claims that seem too good 2b true

Page 36: Consumer Powers and Protections

Reporting

FTC website– Information– Consumer complaint form

National Fraud Info Center– Website and toll free number

Local consumer protection agency BBB State attorney general’s office Post office (if was in mail) Local media

Page 37: Consumer Powers and Protections

Resolving Consumer Complaints

Demonstrate how to make an effective consumer complaint

Identify sources of assistance for resolving consumer problems

Page 38: Consumer Powers and Protections

Registering a Complaint

State problem clearly, ID desired outcome, receipts, know stores policies

Contact Merchant- contact person on level you worked with or go to website (FAQs)– Be polite, professional – Take notes– May need follow up inquiry-higher position

Letter of complaint (may write more than 1)

Page 39: Consumer Powers and Protections

Dispute Resolution

Use a dispute resolution program:– Mediation– Arbitration

Legal action– Small claims court –up to $5000– Lawsuit (legal aide if no $)– Class action suit-lawsuit filed on behalf of grp