Consumer Protections

Consumer Movement

A movement by the public to promote the interests of consumers.

Consumer Movement

First Era Dr. Harvey Wiley – (1880s)

– Mislabeled foods and drugs– Food and Drug Act of 1906.

Upton Sinclair – (1900s)– The Jungle – Meat Inspection Act of 1906.

Consumer Movement

Second Era Stuart Chase and F.J. Schlink (1927)

– Your Money’s Worth – Misleading advertising.

Rachel Carson– Silent Spring – Pesticides on songbirds – Environmental laws

Consumer Movement

Third Era1. Ralph Nader

1. Unsafe at any Speed (1965)2. Car defects3. “Most influential consumer

advocate in U.S. history”

Consumer Agencies

Federal Trade Commission (FTC)

– Protecting consumers from unfair business practices such as misleading information in advertising or labels

Consumer Agencies

Consumer Product Safety Commission (CPSC)

– Protects consumers from dangerous products.– Examples: toy and home goods

Environmental Protection Agency (EPA)– Protects the environment– Sets standards for business

Consumer Agencies

Food & Drug Administration: (FDA)Dept. of Agriculture: (USDA)

– Inspects all produce & meatsSecurity & Exchange: (SEC)

– Regulates financial markets & credit

National Highway Traffic Safety Assn.– Regulates all cars and roads

Federal Communication Commission: (FCC) – Radio, TV, Satellite and Cable

Do We Need Them?

Name The Agency!!!

Name that Agency!

A tobacco company just released a new brand of cigarettes they claim will give you energy after smoking. The box advertises that smoking one cigarette is like drinking three Red Bulls. Of course this is not true.

Federal Trade Commission

Name that Agency!

A toy company releases a new product called Fun with Fire, a kit that lets kids build Molotov Cocktails and other explosive devices.

Consumer Product Safety Commission

Name that Agency!

Ford just released a new sports car that is the fastest production car every made, however, the car is known to burst into flames once it reaches 80 mph.

National Highway Safety Association

Name that Agency!

Tony, a meat-processing worker, accidently falls into a meat-grinding machine and quickly becomes ground beef. Throwing the meat away and cleaning the machine will cost thousands of dollars. So the clever company decides to continue production and markets the meat as “Italian Flavor”.

Department of Agriculture: USDA

Name that Agency!

A cosmetic company just released a new eyeliner color called “Fire” - its main ingredient: Tabasco sauce.

Food & Drug Administration

Name that Agency!

Al Roker of the Today Show has now decided he will do the morning weather report in the nude. When asked why, he replies, “it just feels right”.

Federal Communication Commission

Warranties

Implied warranty – Unwritten guarantee consumers should expect.–Product should do what its intended for.

Express warranty –A statement which presents a specific quality of performance feature of a product

“As-Is” Products –No warranty provided–Used goods

Better Business Bureau

Nonprofit organization created to help consumers and business

1.Assist with resolving issues

2.Keeps records of complaints

3.Educate consumers

Consumers Unions

Non-profit companies that tests products and rates them on the basis of their quality.– E.g. Consumer Reports Magazine

Underwriters Laboratories

Checks products for safety from fire, electric shock and other hazards.