Chapter 15
Consumer Rights &
Responsibilities
Warm-Up


What do you think you have the right to
expect from the products you buy and
the companies that sell them to you?
What responsibilities do you have in
return?
Information Sources for
Consumers

Product Testing Organizations


Test products for benefit of consumer and business
Media Sources



Print
Broadcast
Internet
Information Sources for
Consumers

Government Agencies


Business Sources





Federal, State, Local Agencies available
Advertising
Labels
Customer Service Departments
Better Business Bureau
Personal Contacts



Friends
Family
Co-workers
Information Sources for
Consumers

Consumer Reports

#1 magazine that reports the strengths and weaknesses
of many different brands of products
Federal Agencies

United States Department of Agriculture
(USDA)

Inspects and grades meat and other food
Federal Agencies

Federal Trade Commission (FTC):

protects consumers from unfair business
practices
http://www.ftc.gov
Federal Agencies

Food and Drug Administration (FDA)





Ensures that foods are safe, wholesome
and sanitary
Human and veterinary drugs
Biological products (blood), and medical
devices are safe and effective
Cosmetics are safe
Electronic products that emit radiation are
safe
http://www.fda.gov
Federal Agencies

Consumer Product Safety
Commission (CPSC):

Protects consumers from dangerous
products
http://www.cpsc.gov
Federal Agencies

Environmental Protection Agency
(EPA):

Enforce laws that protect the
environment
Advertising

Any type of paid communication by a
business about a product, service, or
company
Types of Ads

Persuasive Advertising

The most common type of advertising –
to appeal to your emotions to influence
you to buy the product or service
Types of Advertising

Comparison Advertising


offers comparisons of other
products to learn what the advertiser
considers the best quality
Informative Advertising

designed to influence you to buy a
product by educating you
Warm-Up

What is your favorite advertisement.
What makes you like it? Does this ad
influence you to buy the product or go
to that company?
Types of Advertising

Deceptive Advertising

Deliberately designed to mislead you


If an ad contains wrong facts or
statements these are deceptive and illegal
Puffery

legal exaggeration

Example our product is better
Advertising Activity Example
Puffery:
The most refreshing thirst-satisfying drink
The One the Only Diet Coke
Informative
Diet Coke does not add anything to it’s soda, except great
taste.
It has zero calories, zero carbs, zero fat, and only 40 mg of
sodium. All the great flavor without anything else; The one,
the only Diet Coke.
Advertising Activity Example
Persuasive:
Want to fit into those “skinny jeans?” Switch from Coke to Diet Coke
For zero calories but all the flavor, it will have you in those jeans in no time.
Advertising Activity Example
Comparison:
Diet Coke vs Diet Pepsi
Only one has the most flavor
With no after taste
The One, the only, Diet Coke
Comparison Shopping

Compare Pricing

Unit Price

Price per unit of measure

Example: if a 16 ounce bag of one bag of frozen
corn is $1.26 and an 8 ounce box of another brand
is $0.69, which is the better buy?
 1.26 ÷ 16 = .0787 or 7.9 cents
 0.69 ÷ 8 = .0862 or 8.6 cents
Comparison Shopping

Brand

Name given to a product or service to
distinguish it from other similar and
competitive items
Not so Wise Buying

Impulse Buying

Purchasing on a whim

Buying too quickly
Warm-Up


Why do you think most business
people like to have well informed
customers?
When would you consider an impulse
purchase a harmless activity?
Government/Consumer Protection

Consumerism: The Consumer
Movement

seeks to protect & inform consumers
by requiring honest ads, warranties
and safety standards
Consumer Bill of Rights

Right to be Informed:


businesses must give accurate
information
Responsibility for Right to be
Informed:

Use information to choose a
product
Consumer Bill of Rights

Right to Safety:


Products can’t hurt consumer’s
lives or health
Responsibility for Right to
Safety:


Use products safely
follow directions for use
Consumer Bill of Rights

Right to Choose:


Business should give a variety
Responsibility to Right to
Choose:


Choose carefully
Use the rational decision
making process
Consumer Bill of Rights

Right to be Heard:


Government must consider
consumers’ interest when making
laws
Responsibility for Right to be
Heard:


Express Satisfaction or Dissatisfaction
report bad businesses
Consumer Bill of Rights

Right to Redress:


Seek a fair remedy (solution)
Responsibility to Right to
Redress:


Seek Redress
tell businesses of bad products &
ask them to solve the problem
Consumer Bill of Rights

Right to Consumer Ed:


Information must be made available to
consumers
Responsibility to Right to Consumer Ed.:
 Be an Educated Consumer
 Gather information and make an informed
decision
Consumer Bill of Rights

Right to Service


Convenient, courtesy and responsiveness
to consumer problems and needs
Responsibility for Service

Show appreciation for good service by
patronizing businesses that provide it
Warm-Up

Which is a more reliable information
source, advertising or a product label?
How do you know?
Warm-Up

Why is it important for consumers to
have choices?

Remember to answer this question in
complete sentences.
Definitions

Redress:

a remedy (solution) when a
product doesn’t live up to your
expectations.

Ex: return for $ back or
exchange the item
Some Definitions

Monopoly

a company which has an unfair
advantage over competitors.

Example: cable company
Warm-Up

If you have a problem with a product,
what’s the first step you should take?
What will you do if you do not get a
resolution with that first step?
Guarantee

a company’s promise that the
product will meet standards
over time or the company will
repair or replace it
Express Warranty

Oral or written promise for a
specific quality of performance
Implied Warranty

Unwritten guarantee

Imposed by law that certain
standards are met
Resolve Problems

Get your facts straight



Go back to the seller



Be calm and accurate
Keep record of your efforts
Don’t Give Up


Start a file of the complaint
Get your receipt & warranty
Go to the company headquarters
Tell them what you think is a fair solution

Be sure to be fair
Steps to Resolve Problems

Step 1 - Start with the Seller





store salesperson
manager
Step 2 - Write Manufacturer
Step 3 - Tell Better Business
Bureau
Step 4 - File a Lawsuit (last resort)
Warm-Up

Why is filing a lawsuit the last resort or
step in the complaint process?
Government Helps
Consumers

Mediation

Third party who tries to resolve the
complaint between the consumer and
business


Not legally binding
Arbitration

Decides on a solution after hearing from
both parties

Legally binding
Better Business Bureau (BBB)

Non profit, help resolve consumer
problems




resolves problems
keeps a file of complaints and gives
the info to consumers
Educates consumers
promotes honest ads
Court Action

Class Action Suit

Legal action by one party on behalf of a group of
people who all have the same grievance.
Small Claims Court Advantages



Don’t need a lawyer
Costs are low
Most resolved quickly
200 S. Sheldon
Rantoul, IL 61866
Dear Nike:
On September 1, 2009 I bought a pair of Nike Running Shoes from Finish Line
at Market Place Mall in Champaign, IL. On September 5th, after running in them
twice, the sole came apart. I took the shoes back to the Finish Line, on
September 6th and spoke to the manager, Joe Smith. He said he could not
refund or exchange the shoes.
I would like a refund for the shoes. I have enclosed a copy of my receipt and
picture of the shoes. You can reach me at 217-892-2151 or
vconlin@rths.k12.il.us.
Sincerely,
Vickie Conlin
200 S. Sheldon
Rantoul, IL 61866
Dear Nike:
I bought a pair of Nike Running Shoes on September 1, 2009 from Finish Line,
Market Place Mall in Champaign, Il. I ran in the shoes two times and the sole
came apart. This happened on September 5, 2009. On September 6, 2009, I
went back to the Finish Line and spoke to Joe Smith, manager and asked for
an exchange. He said he could not refund or exchange my shoes.
I would like an exchange for my shoes. I have enclosed a copy of my receipt
and a picture of the shoes. You can contact me at 217-892-2151 or
vconlin@rths.k12.il.us.
Sincerely,
Vickie Conlin
Warm-Up

Answer the matching questions on
page 393
Warm-Up

Complete the Chapter 15 Crossword