Keeping Consumers Safe

The Role of Government in Consumer Product Safety

Written by Dallas Duncan and Dr. Frank B. Flanders

June 2010

Consumer Bill of Rights• Right to Safety

– Protected against marketing of items that are hazardous to health and life

• Right to Be Informed– Protected against misleading information and be given facts

needed to make informed choices• Right to Choose

– Have a wide variety of products and services available at competitive prices

• Right to Be Heard– Assured that consumer interests will receive consideration in

making government policy• Right to Education

– Have access to programs and information to help make better market decisions

• Right to Redress– Work with established mechanisms to have problems corrected

and to receive compensation for poor service or faulty products

Federal Trade Commission

• Government organization in charge of preventing unfair methods of competition in commerce

• Has divisions to monitor advertising, business education, law enforcement, finances, marketing, consumer information, identity theft, and company mergers

• Led by 4 commissioners and a chairman appointed by the President– No more than 3 commissioners

can be from the same political party

• Current chairman is Jon Leibowitz

Freedom of Information Act

• Enacted in 1966 and monitored by the FTC

• Allows individuals to make requests for federal agency records or information

• There are 9 exemptions, including:– Top secret information– Medical and personnel

files– Law enforcement

investigation documents

Better Business Bureau

• Accreditation organization for businesses around the country

• 115 offices in the U.S. and Canada

• Evaluates businesses for membership

• Provides information to consumers about fraudulent or misleading information

• Allows consumers to file complaints against businesses and products

Consumer Product Safety Commission

• Organization charged with protecting consumers from risks associated with injury or death caused by products

• Risks include those from fire, electrical, chemical, or mechanical hazard

• CPSC work contributed to a 30 percent decline in the amount of deaths and injuries associated with products in the past 30 years

Recent Recalls• It is illegal to resell or attempt to

resell a recalled consumer product• Costco “Pirates of the Caribbean”

trundle bed– Small children can become

trapped in the storage space• McDonald’s “Shrek” drinking glasses

– Ink on the glasses contains harmful chemical

• MEGA MagnaMan action figures– Magnets can break off and be

choked on• Target Halloween flashlights

– Can melt and burn people