Chapter 1
Consumer Powers and
Protections
1.1
• Consumer = is someone who uses goods
and services
• Goods = physical objects that are
produced (cookies, jeans)
• Services = actions that are performed for
someone (haircut)
Your Economic Role
• Consumer
• Worker
• Citizen
• How are these related???
Consumers Have POWER
• Collectively our purchasing decisions affect
which goods and services are produced.
• Example- consumers buy lots of SUV’s, they
make more, hire more workers, more people
earn more money, etc. etc.
• Marketplace= all of the goods and services
available for sale to general public
• Retailers= sell directly to the consumers (Wal
Mart)
• Teens spend $172 BILLION Yearly
Technology
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Changes how we buy things
TV
Internet
Shop and Compare from home!
Easier to buy on impulse
Effective Consumers
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Set goals
Think critically
Do research
Manage every day finances
Plan for financial security
1.2
The Consumer Movement
• Power of the consumers as a group can
balance the power
• Consumer advocates= people or groups
who work on behalf of consumers
• Page 27- 28 pioneers of the consumer
movement
• Consumer Rights and Responsibilities
Page 29
<pg 15 wkbk read aloud>
• Federal Laws Page 30
• Federal Agencies Page 31
<pg. 17 wkbk., poss. posters>
Other consumer Assistance
• Consumer Groups- focused on education,
protection, and advocacy
• Consumer Testing Agencies and
PublicationsConsumers Union (CU) an independent
consumer testing agency, buy products
and test them
Consumer Reports Magazine
• Better Business Bureau- offers reports on
local business that consumers report
• Consumer affairs department
• Consumer action panels
• Media
1.3 Safeguarding your privacy
• Identity Theft= illegal use of a persons
personal information
• Social Security Number- unique 9 digit
number to keep track of your earnings
DO NOT GIVE OUT UNLESS NECESSARY
How Does it Happen?? Pg 35
• Preventing Identify Theft
Handle mail with care
Keep personal items locked
Safeguard passwords
Do not give out personal info
Cut up old credit cards, statements,etc.
• If your Identity is stolen
File a report with police
Notify banks and credit card companies
Alert agencies
Data Collection and Privacy Issues
• Some info is needed to process an order
• Some companies will keep that info
• Some might sell it
Online Profiling
• When companies collect info about web
sites consumers visit and then use that
info to predict what consumers might buy
in future
• Cookies- small files stored on your
computer that allows web sites to
remember info about you
<debate the issue>
1.4 Recognition of Fraud and
Deception
• Deceptive Advertising- likely to mislead
consumers through false statements, omitted
info, etc.
• Bait Switch – retailers advertise a product that it
has no intention of selling in hopes the
consumer will buy something else
• False promise of free gifts
• Deceptive pricing – saying a “sale” when it is no
better than every day price
• Hidden Prices
Fraud
• Fraud- deceitful conduct designed to
manipulate another person for some gain.
• Pyramid scheme – illegal get rich quick
plan
• Chain letters
• BUYER BEWARE
1.5 Resolving Consumer Problems
• Registering a complaint
State the problem
Have receipts
What do you want to happen?
Go to store or write letter see page 48
• Legal actionsSmall claims court
Lawsuit
Class action suit