Consumer Rights &
Responsibilities
Chapter 34
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Consumer Rights
6 Basic consumer rights:
1. Right to Safety
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Not face undo risk
2. Right to be informed
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Given facts about goods and services
Protected from false and misleading
advertising
Truth-in-Lending Act
Requires lenders state what is charged for credit
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3. Right to Choose

Federal and state laws forbid businesses from
taking actions that limit competition
4. Right to Redress
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Right to have a wrong corrected
Receive refunds/replacements for products
that don’t work
Can take legal action against the business
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5. Right to Consumer Education
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Right to learn about consumer issues
Many states require schools to teach basic
consumer skills
6. Right to be Heard
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Speak out when not satisfied
Can campaign or lobby to shape laws and
regulations
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Handling Problems
Making Complaints
1. Decide who to contact
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Original salesperson
Next manager
Next customer service personnel
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4 Rules
1. Act as soon as you realize the problem

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Quick action lends credibility
By waiting you risk that it will be sold out, back
ordered or discontinued
2. Have a specific goal in mind

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Replaced or repaired
Want a refund or credit towards other
purchase
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3. When you buy, always keep the sales
receipt and warranty

May need it if problem arises
4. keep the product’s original packaging
at least as long as the warranty period
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Might need it for shipping
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Complaining
In Person
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May explain problem more than once
Be calm and patient
If not satisfied, be prepared to leave store
By Phone
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May be more effective to phone
When, where, and how you purchased item
Standard and Poor’s Register of corporations,
Directors, and Executives (help find business)
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By Letter
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Find company’s address
Include your name, address, etc
What the problem is
How you want it fixed
Keep an original copy for you
Polite and reasonable more likely to get
results
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Taking Further Action
Local Business Groups

Local Chamber of commerce
Member organization that represents and
serves businesses in a town or city

Better Business Bureau (BBB)
Helps resolve consumer complaints
An organization of businesses that promise to
follow fair business practices
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National Business Groups
1.
Consumer action panels
Groups formed by industries to handle
consumer complaints (CAP)
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Government Agencies

National level
Consumer Product Safety Commission
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State level
Attorney general’s office
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Good Source of Information
Consumer Information Center
Pueblo, Co 81009
www.pueblo.gsa.gov/
1-888-878-3256
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Join Other Consumers
Band together to see redress
Businesses recognize the power of word
of mouth
Letter writing campaigns
Boycott – technique in which consumers
organize to refuse to buy a company’s
product
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Legal Action
Hiring a lawyer

Expensive
Small Claims Court
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Proceedings in which consumers present their
own claims and a judge decides the outcome
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Until this century, few laws protected
consumers from irresponsible and greedy
sellers
Last 30 years laws and government
agencies help protect consumer rights
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Consumer Responsibilities
Teen buying power impressive
12 to 19 years of age spend $60 billion
Big responsibility
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Show Consideration
Show Consideration
Not opening up products – you might find
yours missing something
Vandalism- deliberately destroying or
damaging property of others

Raises costs to cover losses
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Act Honestly
Return policy

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Rules for returning or exchanging
merchandise
Purchase “as is” and try to return it
Shoplifting
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Stealing items that are displayed for sale in a
store
Shoplifters cost $30 billion a year
Raise costs to recover losses
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Using Products Safely
Responsible consumers follow
manufacturers instruction
Stay informed about safety issues
Recalled –returned to the maker to be
fixed or destroyed
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Real Life Application
Edie ordered a cake from a woman who
ran a small bakery from her home. When
she picked up the cake, she thought it
wasn’t nearly as attractive as the picture in
the brochure she had ordered from. When
she served it, she and several guest found
it dry and stale.
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1. What recourse does Edie have?
2. Is her case weakened because she
cannot return the product?
3. Because her complaints were based on
opinion?
4. Because she had no warranty?
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Consumer Agencies
National Bureau of Standards, a division of
the Department of commerce, maintains
the standards of weights, measures, and
time.
Fixed standards allow people to buy
replacement parts for countless items and
to purchase food in specific amounts.
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International standards are being
developed so goods and services can be
interchanged between countries.
Many goods manufactured overseas are
made according to U.S. standards in
deference to the large American market.
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Other Agencies
Consumer Sentinel
www.consumer.gov/sentinel/index.html
Internet Fraud Complaint Center
www.ic3.gov/
National Fraud Information Center
www.fraud.org/
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Decide in advance exactly what you want and
what you can afford.
Don’t buy on impulse or under pressure. This
includes donating to charity. Do your
research.
Ask family, friends and others you trust for
advice based on their experience. Gather
information about both the seller and the item or
service you are purchasing.
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Review product test results and other
information from consumer experts. See
Consumer Information Sources.
Get advice and price quotes from several
sellers.
Make sure that the seller has all appropriate
licenses. Doctors, lawyers, home improvement
contractors and many other service providers
must register with a state or local licensing
agency.
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Check out a company’s complaint
record with your local consumer affairs
office and the Better Business Bureau.
Get a written copy of guarantees and
warranties. Compare their features.
Get the seller’s refund, return and
cancellation policies.
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Ask whom to contact if you have a question
or problem.
Read and understand any contract or legal
document you are asked to sign. Make sure
there are no blank spaces. Insist that any extras
you are promised orally be put in writing.
Consider paying by credit card. If you have a
problem, you may not have to pay the charge
made on your credit card.
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Activity
A description of the purchase, and the name and
serial number of the product,
A concise summary of the problem,
The specific action you would like the company
to take,
A timeline in which you would like to see the
problem resolved before taking further action,
Your contact information, and
Copies of pertinent documents such as receipts,
copies of warranties and any communication
received to date.
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Activity
Watch Judge Judy
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Activity
Interview a merchant
What do they dislike and like about some
consumers?
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Activity
Write a letter to praise a local merchant.
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