Becoming a Smart Consumer

Becoming a Smart Consumer

Smart Consumers

• Think about whether they need a product, whether they can afford it and how they can purchase it carefully

• Teenagers are often targeted by advertisers because they spend over $200 billion each year.

• http://www.youtube.com/watch?v=NlHUz99l-eo

Emotional Ads• Association: Products will

associate you with popular ideas or symbols

• Bandwagon: Everyone else is using the product.

• Celebrity Appeal: Athletes and movie stars advertise the product.

• Claims of authorities: Experts recommend the product.

• http://www.youtube.com/watch?v=Auqp28Bk4RI

• http://www.youtube.com/watch?v=buDWcDsR3rs

• http://www.youtube.com/watch?v=CcWnfduAS_E

Consumer Protection Laws

• Laws prevent false advertising, unfair pricing and mislabeling

Consumer Product Safety Act

• Allows the government to ban, seize or prevent the sale of harmful products.

Nutrition Labeling and Education Act

• Federal government required most food manufacturers to list fats and calories, so most people would understand.

Consumer Lawsuits!

• Remedy: Government actions that make up for the harm to the consumer

• Expectation Damages: Difference between the value that would be expected if the breaching party had fulfilled it’s promise.

• Cease and Desist Order: A government agency can require a business to stop a forbidden practice

• Consent Decrees: Voluntary agreements to end a practice that is claimed to be illegal

• Rescission: Ask the court to cancel a contract

Court Options• Criminal Cases: Sometimes

sellers actions are considered crimes– Criminal Fraud: a salesperson

knowingly misstates or misrepresents an important fact with intent to defraud

• Civil Court: Lawsuits involving large amounts of money (More than $5,000)

• Small Claims Court: Inexpensive, quick and no attorney required. (All cases are decided by judges)– Modeling Agency Scam

Before a Purchase

• Comparison Shopping: Compare prices and products

• Each seller will have different return policies, installation fees etc.

• Read the warranty• Read before signing a

contract

Better Business Bureau

• Provides information about different sellers and collects reviews from other consumers– http://easternnc.bbb.org

/consumers

After the purchase-Direct Action!• Inspect the product

immediately after the purchase• Read and follow any directions

provide• Contact the seller first with any

problems or defects– If there is no response, you may

write directly to the President of the company

• To find the manufacturer use the Thomas Registry of American Manufacturers.

Consumer Agencies & Groups• Consumer Federation of

America• Consumers Union• Safe Kids Worldwide• Better Business Bureau• National Association of

Attorneys General• Federal Trade Commission• Food and Drug Administration• Consumer Product Safety

Commission

• U.S. Postal Service• Federal Communications

Commission• National Highway Traffic

Safety Administration• Federal Transit Administration• Federal Railroad

Administration• Federal Aviation

Administration