CONSUMER
RESPONSIBILITIES
Business & Personal Finance
The marketplace is full of
deceptive and misleading
promotions that induce
consumers to buy goods and
services of inferior quality or
things they do not really need or
want.
Deception
Occurs when false or
misleading claims are made
about the quality, the price, or
the purpose of a particular
product.
PREVENTION
is still the best safeguard
against financial
misfortune.
Fraudulent and Deceptive
Marketing Practices
Bait and
Switch
• An illegal technique in which a seller
advertises a product with the intention
of persuading consumers to buy a more
expensive product.
Fake Sales
• A merchant advertises a big sale but
keeps the items at regular price or makes
the price tags look like a price reduction.
LowBalling
• Advertising a service at an incredibly low
price to lure customers and then attempt
to persuade them that they need
additional services.
Pyramid
Schemes
Pigeon Drop
Fraudulent
Representation
• Mostly multilevel marketing plans that
promise distributors commissions from
their own sales and those of other
distributors they recruit.
• Refers to any method used by experienced
con artists to convince vulnerable people to
invest in phony investments, swampland
real estate, or other swindles.
• Telephone or door-to-door solicitations
made by people who claim to represent
well-known companies or charities.
Health and
Medical Product
Frauds
Infomercials
• Deceptive advertising for expensive “miracle”
pills, creams and devices to enhance a
consumers health and beauty.
• A lengthy paid TV advertisement that includes
testimonials, product demonstrations, and
presentation of product features.
Internet Fraud
• False advertisements
• Fake websites
Telemarketing
Fraud
• “free” prize
• Give credit card number
Being a Responsible
Consumer
Identify Deceptive Practices
Shop Smart
Online Shopping
Stay Informed
Seek Redress
Shop Smart
Shop at several stores
Be aware of prices
Understand sale terminology
Avoid impulse buying
Plan you purchases
Compute unit prices
Read Labels
Check containers carefully
Read contracts
Keep receipts and warranties
Compute total cost
Ask for references
Be loyal
Check up on businesses
Wait a day for major purchases
Online Shopping
 Shop at secure websites
 Check the website address
 Research the website before you order
 Read the websites privacy and security policies
 Shop safely
 Share only the essentials when you order
 Print and keep the confirmation order
 Know shipping and return policies
 Use common sense
Stay Informed
 Be familiar with sources of information
 Read warranties and guarantees
 Read and understand care instructions
 Analyze advertisements
 Know consumer protections laws
 Inform consumer protections agencies of
fraudulent or unsafe products or services.
 Keep good records or complaints, defective
products, actions taken, etc.
Seek Redress
A remedy to a problem
 Take the product back to the store where you
bought it.
 Calmly explain the problem to the salesperson.


Stay firm but not angry
Say that you are dissatisfied and explain why
 If you are not satisfied with the managers remedy,
put your complaint in writing to the store’s owner
or headquarters.
 Send photocopies of evidence
 Sales receipts
 Warranties
 If you are still dissatisfied with the result, file a
complaint with the appropriate government
agency for consumer protections.
 Finally, you may need to seek legal recourse.