Most consumers solve problem themselves: Contact the seller customer service Contact seller headquarter
Contact consumer organizations
End all – file claim in small claims court Types of Consumer Protection Agencies
Nongovernmental Government Consumer
Consumer Organizations: Organizations: The Consumer Federation of The Federal Trade Commission America US Department of Agriculture National Consumers League The Food And Drug Consumers Union Administration Major Appliance Consumer Action National Highway Traffic Safety Program Administration The Media Consumer Product Safety Commission State Public Utilities Commissions State Insurance Commissions State Licensing Agencies Nongovernmental Consumer Organizations
Work on behalf of consumers
Consumer Advocate: groups and individuals work to protect, inform, and defend consumers Many consumer advocates are private, nonprofit groups The Consumer Federation of America
Works to inform the public & gov’t about consumer
issues Works with public officials to promote polices that benefit consumers (ensure fair/balanced debate about issues important to consumers) Studies federal laws that affect consumers Lets members know they can support legislation to help the public National Consumers League
Nations oldest nonprofit consumer group
Membership open to anyone Provides gov’t agencies, businesses, other organizations with consumer point of view National Fraud Information Center Monitors Internet to alert consumers of fraud Consumers Union
Nonprofit organization that publishes Consumer
Reports magazine Researchers test products & report findings Testifies before gov’t agencies on consumer concerns Major Appliance Consumer Action Program
Association of Home Appliance Manufactures
Most major appliance dealers are members MACAP helps consumers solve problems with large appliances: Washers Freezers Stoves The Media Internet sites, radio, TV stations, newspapers advocate for consumers Often have consumer reporters who report issues importation to consumers: Product Safety, Testing, Shopping Reporter might feature local business problem and visit the location to solve problem Government Consumer Organizations
Each state has a consumer affairs division
In some states, Attorney General’s office handles consumer affairs Set up to protect consumers Publish materials to help consumers with buying decisions and problems The Federal Citizen Information Center is a good source for consumer information The Federal Trade Commission
FTC enforces federal antitrust and consumer
protection laws Investigates complaints against companies Seeks to ensure nations markets function competitively Works to eliminate unfair or deceptive practices US Department of Agriculture USDA inspects foods and grades them Grade labels: indicate the level of quality of foods EXAMPLE: meat can be labeled ‘prime’ or ‘choice’ Consumers use grade as a guide for what to buy The Food And Drug Administration
FDA regulates the labeling and safety of food,
drugs, cosmetics, dietary supplements, and medical devices sold in the US FDA tests and approves all drugs before they can be offered to consumers Reviews products already on the market National Highway Traffic Safety Administration
Part of the US Department of Transportation
Agency sets and enforces safety standards for motor vehicles Can require an automaker to issue recall Recall: order to take back & repair or replace a product that has defective parts Consumer Product Safety Commission
Oversees the safety of products such as toys, cribs,
power tools, electronics, furniture Contributed to a 30% decline in deaths/injuries associated with consumer products over the last 30 years State Public Utilities Commissions Regulates the rates charged by electric, gas, and water companies Also may regulate telephone services in local areas Protect consumers from unfair pricing Public utilities are legal monopolies - a company is allowed to operate without competition State Insurance Commissions
State government bodies responsible for regulating
the activities of insurers and health plans Control and approve insurance rates State Licensing Agencies
Issue licenses - legal permits to conduct business
Licenses provide assurance to consumers that license holder is qualified to do a service Doctors, teachers, roofers, hair stylists require licenses Activity
Students are to visit http://www.cpsc.gov and complete the following:
Research the recall of your choice of one product : 1. What impact does this recall have on the company? 2. What should consumers do if they own this product? 3. How will this recall impact consumer perception of the company? Research the recall of your choice of one additional product: 1. What impact does this recall have on the company? 2. What should consumers do if they own this product? 3. How will this recall impact consumer perception of the company?
Students are to visit http://www.distraction.gov/downloads/pdfs/school-
presentation.pdf and complete the following: 1. What are the 3 main types of distractions when you drive? 2. List 3 ways you can be distracted while driving (not counting texting) – do you believe these actions really distract the driver? 3. How can you as a high school student get involved? 4. What are the Distracted Driving laws in Virginia?