Judul

Consumer Protection

Arjey Winfried Pakasi Bellatrix Kahimpong Chairino Vanto

Kelompok 2 Gita Akhmad Wibiksana Hasudungan Randyanto Supraptiwi Beni Astuti

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Objective of consumer laws

1. To provide customers with better information when making purchases.
2) To protect consumers against possible hazards from products they may purchase. 3) To promote competitive pricing and consumer choice.

4) To protect privacy.

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Reason for the Consumer Movement

Complex product have enormously complicated the choice consumers need to make when they shop. Service, as well as product, have become more specialized to judge. When businesses try to sell either products or services through advertising. When businesses try to sell either product for services through advertising, claims my be inflated or they may appeal to emotions Technology has permitted businesses to learn more than ever about their costumers potentially violating their privacy. Some business have ignored product safety

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Consumers Right
1) The right to safety: To be protected against the marketing of goods that are hazardous to health or life. 2) The right to be informed To be protected against fraudulent, deceitful, or grossly misleading information, advertising, labeling, or other practices, and to be given the facts to make an informed choice. 3) The right to choose To be assured, wherever possible, access to a variety of products and services at competitive prices and in those industries in which competition is not workable and government regulation is substituted, to be assured satisfactory quality and service at fair prices. 4) The right to be heard To be assured that consumer interests will receive full and sympathetic consideration in the formulation of government policy, and fair and expeditious treatment in its administrative tribunals. 5) The right to privacy To be assured that information disclosed in the course of commercial transaction is not shared with others unless authorized.
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Major consumer protections specified by consumer laws

Information protections
Hazardous home appliances must carry a warning label. Home products must carry a label detailing contents. Autos must carry a label showing detailed breakdown of price and all related costs.

Tobacco advertisements and products must carry a health warning label.

Alcoholic beverages must carry a health warning label. All costs related to real estate transactions must be disclosed. Warranties must specify the terms of the guarantee and the buyers rights. False and deceptive advertising can be prohibited. Food and beverage labels must show complete information. Food advertising must not make false claims about nutrition.
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Major consumer protections specified by consumer laws

Direct hazard protections Hazardous toys and games for children are banned from sale.
Safety standards for motor vehicles are required. National and state speed limits are specified. Hazardous, defective, and ineffective products can be recalled under pressure from EPA, CPSC, NHTSA, and FDA Pesticide residue in food is allowed only if it poses a negligible risk.

Pricing protections
Unfair pricing, monopolistic practices, and noncompetitive acts are regulated by FTC and Justice Department and by states.

Liability protections When injured by a product, consumers can seek legal redress. Other protections No discrimination in the extension of credit.
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Major federal consumer protection agencies and their main responsibilities

Federal Trade Commission
Competitive pricing
Deceptive trade practices Packaging and labeling Consumer credit disclosure and reporting Online privacy

Food and Drug Administration

Safety, effectiveness, and labeling of drugs, foods, food activities, cosmetics, and medical devices Standards for radiation exposure Toxic chemicals research

Consumer Product Safety Commission Safety standards for

consumer products Flammable fabrics, hazardous substances, poison prevention packaging

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Major federal consumer protection agencies and their main responsibilities

National Highway Traffic Safety Administration
Motor vehicle safety standards Automobile fuel economy standards National uniform speed limit Consumer safeguards for altered odometers

Department of Justice
Fair competition Consumer civil rights

National Transportation Safety Board

Airline safety

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Protecting consumer privacy

Consumer self-help
Internet users should use technologies that enable them to protect their own privacy.

Industry self-regulation
Businesses should adopt voluntary policies and technical standards that protect the privacy of their customers.

Privacy legislation
The government should pass laws that establish minimum privacy standards for collecting information online.

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Product liability reform proposals

1) Set up uniform federal standards for determining liability.

2) Shift the burden of proving liability to consumers.

3) Eliminate some bases for liability claims.

4) Require the loser to pay the legal costs of the winner.

5) Limit punitive damages.

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Business responses to consumerism

Total quality management
This approach emphasizes achieving high quality and customer satisfaction through teamwork and continuous improvement of a companys product or service.

Voluntary industry codes of conduct

In some cases, businesses in an industry have banded together to agree on voluntary codes of conduct, spelling out how they will treat their customers.

Consumer affairs departments

These centralized departments normally handle consumer inquiries and complaints about a companys products and services.

Product recalls
Occurs when a company, either voluntarily or under an agreement with a government agency, takes back all items found to be dangerously defective.
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Employees and the Corporation

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 Right to organize and bargain

No drug or alcohol abuse No actions that would endanger others To treat others with respect and without harassment of any kind Honesty; appropriate disclosure Loyalty and commitment Respect for employers property and intellectual capital

Safe and healthy workplace

Privacy Discipline fairly and justly applied To blow the whistle Equal employment opportunity To be treated with respect for fundamental human rights
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Restrictions on employment-at-will
An employer may not fire a worker:

Because of race, gender, religion, national origin, age, or disability.

If this would constitute a violation of public policy, as determined by the courts.

If, in doing so, it would violate the Worker Adjustment Retraining Notification Act (WARN).
Simply because the individual was involved in a union organizing drive, or other union activity. If this would violate an implied contract, such as a verbal promise, or basic rules of fair dealing.
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Occasions for drug testing at work

Pre-employment screening Some firms test all job applicants or selected applicants before hire. Random testing of employees In many companies, workers in particular job categories or levels are eligible for screening at any time. Testing for cause This test may be given when an employee is believed to be impaired by drugs and unfit for work.

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In work context, privacy rights refers to protecting an individuals personal life from unwarranted intrusions by the employer 4 areas where this might present a dilemma

1. Electronic monitoring - Companies can gather, store, and monitor information about employees activities. This may be at odds with an employees right to privacy
2. Romance in the workplace - If office romance goes sour, one of the people may sue, charging sexual harassment. When one person in a relationship is in a position of authority, s/he may be biased in an evaluation of the others work.
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3. Employee drug use and testing - Three-fifths of companies test employees or job applicants for Illegal substances. Arguments in debate over drug testing are shown on next slide. 4. Alcohol abuse at work - U.S. businesses lose an estimated $70 billion per year in reduced productivity directly related to alcohol abuse. Many employers now offer EAPs (employee assistance programs) to help employees with alcohol and drug abuse issues

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Whistle-Blowing and Free Speech

Free speech in the workplace :
oAnother area where employer and employee rights and duties sometimes conflict oU.S. Constitution protects free speech; however does not specifically protect freedom of expression in the workplace oEmployees are not generally allowed to speak out against their employers, due to legitimate interests of the business oWhen societys interests override those of the individual business, employee may feel the need to speak out or blow the whistle
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Whistle-Blowing and Free Speech

Whistle-blowing: when an employee believes his or her employer has done something this is wrong or harmful to the public, and he or she reports the alleged misconduct to the media, government or high company officials Four conditions must be satisfied to justify whistle-blowing 1. Organization is doing something that seriously harms others 2. Employee has tried and failed to resolve the problem internally 3. Reporting the problem publicly will probably stop or prevent the harm 4. The harm is serious enough to justify the probable costs of disclosure to the whistle-blower
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The U.S. work force is more diverse than ever before.

More women are working than ever before.

The number of immigrants has increased.

Ethnic and racial diversity is increasing.

The workforce will continue to get older.

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Proportion of women in the labor force, 1948-2013

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The pay gap, 1971-2011 median Annual Income of full-time workers, as a percentage of those of white men

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Major federal laws and executive orders prohibiting job discrimination

Equal Pay Act (1963)
Civil Rights Act (1964; Equal Employment

amended 1972, 1991) Executive Order 11246 (1965) Age Discrimination in Employment Act (1967)

Opportunity Act (1972) Pregnancy Discrimination Act (1972) Americans with Disabilities Act (1978) Family and Medical Leave Act (1993)

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Effective strategies for managing diversity

Articulate a clear diversity mission, set objectives, and hold managers accountable. Spread a wide net in recruitment, to find the most diverse possible pool of qualified candidates. Identify promising women and persons of color, and provide them with mentors and other kinds of support.

Set up diversity councils to monitor the companys goals and progress toward them.

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