Consumer Rights Consumer Rights and and Responsibilities Responsibilities Chapters 3.1 and 3.4 Chapters 3.1 and 3.4
Dec 24, 2015
Consumer Rights Consumer Rights and and
ResponsibilitiesResponsibilitiesChapters 3.1 and 3.4Chapters 3.1 and 3.4
SafetySafety
Right to safetyRight to safety Products must not endanger consumers’ lives Products must not endanger consumers’ lives
or healthor health Responsibility to use products safelyResponsibility to use products safely
Consumers are responsible for following Consumers are responsible for following directions for proper use and maintenance of directions for proper use and maintenance of productsproducts
Information Information
Right to be informedRight to be informed Business must provide accurate information in Business must provide accurate information in
advertising, labeling, and sales practices.advertising, labeling, and sales practices. Responsibility to use informationResponsibility to use information
Consumers are responsible for using the Consumers are responsible for using the information to evaluate product choices.information to evaluate product choices.
ChoiceChoice
Right to ChooseRight to Choose Consumers should have a variety of goods Consumers should have a variety of goods
and services from which to choose.and services from which to choose. Responsibility to choose carefullyResponsibility to choose carefully
Consumers should take advantage of product Consumers should take advantage of product variety by considering many opinions and variety by considering many opinions and making rational choices.making rational choices.
HeardHeard
Right to be heardRight to be heard The government must consider consumer The government must consider consumer
interests when creating laws.interests when creating laws. Responsibility to express satisfaction or Responsibility to express satisfaction or
dissatisfactiondissatisfaction Consumers should tell their elected officials Consumers should tell their elected officials
their opinions on consumer issues, and inform their opinions on consumer issues, and inform them of improper business practices.them of improper business practices.
RedressRedress
Right to redressRight to redress Consumers should be able to obtain fair Consumers should be able to obtain fair
remedies to consumer problems.remedies to consumer problems. Responsibility to seek redressResponsibility to seek redress
Consumers should inform businesses of Consumers should inform businesses of product defects and unfair practices and product defects and unfair practices and pursue remedies.pursue remedies.
Consumer EducationConsumer Education
Right to consumer educationRight to consumer education Sufficient information should be available Sufficient information should be available
for consumers to make rational decisions.for consumers to make rational decisions. Responsibility to be an educated Responsibility to be an educated
consumerconsumer Consumers should take advantage of Consumers should take advantage of
opportunities to gather information and opportunities to gather information and learn how to make rational buying learn how to make rational buying decisions.decisions.
Healthy EnvironmentHealthy Environment
Right to a healthy environmentRight to a healthy environment Businesses should avoid polluting the Businesses should avoid polluting the
environment and should contribute to the environment and should contribute to the welfare of the community in which they welfare of the community in which they operate.operate.
Responsibility to contribute to a healthy Responsibility to contribute to a healthy environmentenvironment Consumers should support businesses that Consumers should support businesses that
operate responsibly and report environmental operate responsibly and report environmental abuses to authorities.abuses to authorities.
Why?Why?
Consumer movementConsumer movement Seeks to protect and inform consumers of Seeks to protect and inform consumers of
requiring such practices as honest requiring such practices as honest advertising, product warranties, and improved advertising, product warranties, and improved safety standards.safety standards.
Who can help?Who can help?
Federal Trade Commission (FTC)Federal Trade Commission (FTC) Most important federal consumer protection Most important federal consumer protection
agencyagency Responsible for protecting consumers from Responsible for protecting consumers from
unfair or deceptive business practices such as unfair or deceptive business practices such as misleading information in advertising or on misleading information in advertising or on product labelsproduct labels
Cease-and-desist order – stops deceptive Cease-and-desist order – stops deceptive advertisingadvertising
Who else?Who else?
Consumer Product Safety Commission Consumer Product Safety Commission (CPSC)(CPSC) Protects consumers from dangerous products.Protects consumers from dangerous products.
Environmental Protection Agency (EPA)Environmental Protection Agency (EPA) State and local governmentsState and local governments
WarrantiesWarranties
Company’s promise that the product will Company’s promise that the product will meet specific standards over a given time meet specific standards over a given time period or the company will repair or period or the company will repair or replace it, or give a refundreplace it, or give a refund
WarrantiesWarranties
Magnuson-Moss Warranty ActMagnuson-Moss Warranty Act Full warranty – VERY specific, written Full warranty – VERY specific, written
guaranteeguarantee
Limited warranty – limitations explained in Limited warranty – limitations explained in detaildetail
Implied vs. Expressed Implied vs. Expressed
Implied warranty Implied warranty unwritten guaranteeunwritten guarantee
*Express warranty *Express warranty statement which presents a specific quality of statement which presents a specific quality of
performance feature of a productperformance feature of a product
Misc.Misc.
Consumer’s UnionConsumer’s Union tests products and tests products and reports on the results in Consumer reports on the results in Consumer Reports.Reports.
Underwriter’s LaboratoriesUnderwriter’s Laboratories checks checks products for safety from fire, electric products for safety from fire, electric shock, and other hazards.shock, and other hazards.
State’s attorney’sState’s attorney’s office handles frauds office handles frauds and misleading ad claims and misleading ad claims
Deception vs. FraudDeception vs. Fraud
DeceptionDeception ExaggerationExaggeration LegalLegal MisleadingMisleading
FraudFraud DeliberateDeliberate Unlawful extremesUnlawful extremes
DeceptionDeception
Trading Up – practice of pressuring Trading Up – practice of pressuring consumers to buy a more expensive consumers to buy a more expensive product than they intended product than they intended
Sale Price – must be below usual priceSale Price – must be below usual price Suggested Retail Price – manufacturers Suggested Retail Price – manufacturers
price is sometime higher then what the price is sometime higher then what the retailer expects to get from it. retailer expects to get from it.
Loss Leader – below cost to attract you to Loss Leader – below cost to attract you to the storethe store
FraudFraud
Statement is fraudulent if:Statement is fraudulent if: Person making statement KNOWS it’s falsePerson making statement KNOWS it’s false Purpose of statement causes others to give Purpose of statement causes others to give
up some value up some value Proving fraud is difficultProving fraud is difficult
Was it a mistake?Was it a mistake? Was there intent?Was there intent?
Best advice is to avoid fraudBest advice is to avoid fraud
Types of FraudTypes of Fraud
Bait and SwitchBait and Switch Pyramid SchemesPyramid Schemes
Chain lettersChain letters Memberships, not productsMemberships, not products
Telephone (& Internet) FraudTelephone (& Internet) Fraud
Telephone FraudTelephone Fraud
Too good to be trueToo good to be true Request for credit Request for credit
card or ss#card or ss# Buy for something Buy for something
freefree Refusal to send Refusal to send
written confirmation or written confirmation or informationinformation
Pressure to act now Pressure to act now or offer expiresor offer expires
Refusal to identify Refusal to identify themselves or themselves or companycompany
Refusal to provide Refusal to provide company info (phone, company info (phone, address)address)
Telephone TechniquesTelephone Techniques
Drop famous namesDrop famous names““Having lunch with Michael Jordan was great…”Having lunch with Michael Jordan was great…”
Use terms of endearment, emotionsUse terms of endearment, emotions““I lost my mother and you remind me of her.”I lost my mother and you remind me of her.”
Suggest lack of powerSuggest lack of power““May I talk to the decision maker?”May I talk to the decision maker?”
Use guilt tripsUse guilt trips““I’ve already spent an hour with you…”I’ve already spent an hour with you…”
Pressure to make quick decisionsPressure to make quick decisions““We only have two left…”We only have two left…”
Telephone AdviceTelephone Advice
Ask for time to think about itAsk for time to think about it Ask for information be sent to youAsk for information be sent to you Ask for their number and call backAsk for their number and call back Ask for referralsAsk for referrals
More Faces of FraudMore Faces of Fraud
Health-care products that cureHealth-care products that cure Home improvement charging fees up frontHome improvement charging fees up front Vacation clubs promising cheap vacationsVacation clubs promising cheap vacations REALLY inexpensive repair workREALLY inexpensive repair work Weight loss programs appearing unrealisticWeight loss programs appearing unrealistic
Protect YourselfProtect Yourself
Be skeptical!Be skeptical! Ask questions!Ask questions! Research companiesResearch companies Research productsResearch products Use your head, not your “heart”Use your head, not your “heart”
Complaint processComplaint process
Have your facts straightHave your facts straight Documentation Documentation
Receipts, warrantiesReceipts, warranties Dates/locations/namesDates/locations/names Product detailsProduct details Price and payment methodPrice and payment method Explanation of problemExplanation of problem Desired resolutionDesired resolution
Be rational, not emotionalBe rational, not emotional Document names, dates, and conversationsDocument names, dates, and conversations
Who to talk to?Who to talk to?
Customer service repCustomer service rep
Manager Manager
Manufacturer Manufacturer
Consumer group/agency Consumer group/agency
Lawsuit Lawsuit
Consumer OrganizationsConsumer Organizations
Better Business BureauBetter Business Bureau Helps resolve disputesHelps resolve disputes Keeps files of complaints Keeps files of complaints Educates consumersEducates consumers Promotes honest advertising/sellingPromotes honest advertising/selling
Arbitration – consumer boardArbitration – consumer board Media helpMedia help
Cooling-off PeriodsCooling-off Periods
Allows time to back out of a dealAllows time to back out of a deal Generally three daysGenerally three days FTC created for door-to-door salesFTC created for door-to-door sales
Other optionsOther options
Report incident to state’s attorneyReport incident to state’s attorney Small claim courtsSmall claim courts
Price range ($1- to 10,000)Price range ($1- to 10,000) No lawyer needed or allowedNo lawyer needed or allowed Court fees lowCourt fees low Quick resolutionQuick resolution