Introduction to Business & Marketing

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Find solutions for consumer problems
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Most consumers solve problem themselves:
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Contact the seller customer service
Contact seller headquarter
 Contact consumer organizations
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End all – file claim in small claims court

Types of Consumer Protection Agencies
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Nongovernmental
Consumer Organizations:
The Consumer Federation of
America
National Consumers League
Consumers Union
Major Appliance Consumer Action
Program
The Media
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Government Consumer
Organizations:
The Federal Trade Commission
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US Department of Agriculture
The Food And Drug
Administration
National Highway Traffic Safety
Administration
Consumer Product Safety
Commission
State Public Utilities
Commissions
State Insurance Commissions
State Licensing Agencies

Nongovernmental Consumer Organizations
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Work on behalf of consumers
Consumer Advocate: groups and individuals work to protect, inform, and defend consumers
Many consumer advocates are private, nonprofit groups

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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

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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

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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
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Association of Home Appliance Manufactures
Most major appliance dealers are members
MACAP helps consumers solve problems with large appliances:
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Washers
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Freezers
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Stoves

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Internet sites, radio, TV stations, newspapers advocate for consumers
Often have consumer reporters who report issues importation to consumers:
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Product Safety, Testing, Shopping
 Reporter might feature local business problem and visit the location to solve problem

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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

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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

 USDA inspects foods and grades them
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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

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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
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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

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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

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Regulates the rates charged by electric, gas, and water companies
Also may regulate telephone services in local areas
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Protect consumers from unfair pricing
Public utilities are legal monopolies - a company is allowed to operate without competition

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State government bodies responsible for regulating the activities of insurers and health plans
Control and approve insurance rates

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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

Students are to visit http://www.cpsc.gov
and complete the following:
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Research the recall of your choice of one product :
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1.
2.
What impact does this recall have on the company?
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.
2.
3.
What impact does this recall have on the company?
What should consumers do if they own this product?
How will this recall impact consumer perception of the company?
Students are to visit http://www.distraction.gov/downloads/pdfs/schoolpresentation.pdf
and complete the following:
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4.
What are the 3 main types of distractions when you drive?
List 3 ways you can be distracted while driving (not counting texting) – do you believe these actions really distract the driver?
How can you as a high school student get involved?
What are the Distracted Driving laws in Virginia?