Chapter 3 Your Purchasing Power. Slide 2 What Are Consumer Rights? 3-4 Consumer Rights and Responsibilities Many laws protect consumers. Consumer Bill.

Chapter 3

Your Purchasing Power

Slide 2

What Are Consumer Rights?

3-4 Consumer Rights and Responsibilities

Many laws protect consumers.• Consumer Bill of Rights• Airline Passenger Rights• Consumer Technology Bill of Rights• Patients’ Bill of Rights• Consumer Protection Laws

o Examples: Food, Drug, and Cosmetic Act; Hazardous Substances Act; Cigarette Labeling and Advertising Act; Nutrition Labeling and Education Act; FERPA; HIPAA

Slide 3

Sources of Consumer Protection

3-4 Consumer Rights and Responsibilities

• Federal agencieso Examples: USDA, FDA,

CPSC, FCC, FTC, FAA, SEC

• State and local assistance

• Private Organizationso Examples: BBB, National

Consumers League, Consumers Union

Slide 4

How Are Consumers Defrauded?

3-4 Consumer Rights and Responsibilities

Deception involves false or misleading claims made about a product.

• Bait and switch• Fake sales• Low-balling• Pyramid schemes• Ponzi schemes• Pigeon drop• Infomercials

Slide 5

How Are Consumers Defrauded?

3-4 Consumer Rights and Responsibilities

http://www.youtube.com/watch?v=9EQPrFR9KRo

Slide 6

How Can Consumers Protect Themselves from Fraud?

3-4 Consumer Rights and Responsibilities

• Shop smart• Be aware of prices• Understand sale

terminology• Compute unit

prices• Read labels• Check packages

carefully

• Read contracts• Keep receipts and

warranties• Compute total cost• Research

businesses