Consumer Protection Agencies
Consumer Protection Agencies – what do they do:
 Find solutions for consumer problems
 Most consumers solve problem themselves:
 Contact the seller customer service
 Contact seller headquarter
 Contact consumer organizations
 End all – file claim in small claims court
Nongovernmental __________________________ 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
1. ___________________________________________
 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
2. National Consumers League
 Nations oldest nonprofit consumer group
 ______________________________________________________________
 Provides gov’t agencies, businesses, other organizations with consumer point of
view
 National Fraud Information Center
 Monitors Internet to alert consumers of fraud
3. 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 _____________________ 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
1. 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
2. ________________________________________
 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
3. 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
4. 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
5. __________________________________________________________
 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
6. 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
7. __________________________________________________________
 State government bodies responsible for regulating the activities of insurers and health
plans
 Control and approve insurance rates
8. 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