Consumer Advocates
“Who watches out for the
consumer?”
Private, Government,
Regulatory Agencies,
Magazines,
Associations, Leaders
Who is a Consumer? You are!!!
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Who is a consumer advocate? A party who
stands up for another party and defends
them.
Who is an advocate for you as a consumer?
First and foremost…you are!!!
Let’s review your rights…and
responsibilities as a consumer.
Consumer Bill of
Rights
3
Consumer rights and
responsibilities
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I want to
say…
To be informed-compare, evaluate
To choose carefully-shop around-quality, brands
To use products safely-read labels, follow instrux
To speak out and be heard - letter of complaint
To seek remedy and have problems corrected –
repair, reimburse, or replace
To consumer education – read, compare, be aware
of illegal practices, use consumer publications
To learn consumer skills –conservation,
consumerism
Consumer Bill of Rights
What is the purpose of the consumer bill of
rights?
The consumer bill of rights protects consumers
from unfair business practices.
5
Consumer Bill of Rights
continued
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The Right to Be Informed
–
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The Right to Safety
–
6
Consumers have the right to be informed of what
a product is and its functions.
Consumers have the right to be protected from
harm while using a product or service.
Consumer Bill of Rights
continued
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The Right to Choose
–
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The Right to Be Heard
–
7
Consumers have the right to choose what to buy
among a variety of products and services.
Consumers have the right to talk with businesses
about products or services they offer. Consumers
may share their comments, complaints, concerns,
or questions.
Consumer Bill of Rights
continued
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The Right to a Remedy
–
–
–
8
Consumers are assured that they can seek legal
remedy when they encounter a problem or
defective product.
What is a guarantee? (A promise that a product
meets certain quality.)
What is the difference between an express and
an implied warranty?
Consumer Bill of Rights
continued
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The Right to Consumer Education
–
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The Right to Service
–
9
Consumers have the right to be informed about
how their purchasing decisions impact them
personally and the economy.
Consumers have the right to receive goods and
services at the promised level by companies.
Speaking out - Letter of Complaint
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Use positive tone since letter is negative by
nature
Three basic paragraphs
–
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What happened
What action do you want receiver to take?
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Refund, repair, replace
Positive closing
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How will they reach you?
Have you attempted to reach favorable response?
How consumers make a difference
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Social awareness due to consumer and media
exposure
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Boycotts- large # of consumers refuse to buy
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MADD- Mothers Against Drunk Driving
“Erin Brockovich” –polluted ground water
“Dollars vote” concept
Prices go down – ex: gas prices
Business may fail - ex: clothing made using child labor
Conservation- reuse, recycle, reduce
Common socially responsible
practices of businesses
12
Common Socially Responsible
Practices of Businesses
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Socially responsible practices of businesses
include practices that positively impact
communities.
Common social responsibilities addressed:
−
−
−
−
13
Environmental protection
Workplace diversity
Job safety
Employee wellness
Common Socially Responsible
Practices of Businesses
continued
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Companies can contribute to environmental
protection by
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14
Implementing actions to conserve natural
resources
Minimizing pollution of air and water resources
What is an example of an organization or
action that protects the environment?
Environmental Protection Agency
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15
EPA enforces and provides standards for air and
water quality.
www.epa.gov
Recycling and Conservation
 Save
the
earth. It's the
only planet
with
chocolate.
Recycling?
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Aluminum cans, metals – new aluminum products, structural
products
Animal wastes- fertilizers
Yard/kitchen wastes- compost for gardens
Plastic bottles – carpet, auto parts, fiberfill
Newspaper- newsprint, insulations, paperboard
Construction waste, tires- pressboard, roads, playground mulch
Furnishings & clothing- reused by another person (Goodwill,
Salvation Army, Kidney Foundation, garage sales)
Glass- jars, bottles and construction materials
Federal Citizen Information Center
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Purpose: to provide American citizens with a
catalog of federal publications available
May order info on-line
Located in Pueblo, Colorado
Phone # 1-888-8PUEBLO
http://www.pueblo.gsa.gov/. United States
General Services Administration
Common Socially Responsible
Practices of Businesses
continued
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19
Workplace diversity exists in a company
when the employees represent a variety of
groups including women, ethnic groups,
physically challenged, and older workers.
What is an example of an organization or
action that enforces workplace diversity?
WORKFORCE DIVERSITY
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20
The American with Disabilities Act (ADA) enforces
regulations to accommodate people with disabilities.
The Age Discrimination in Employment Act protects
employees 40 or over from employment decisions based
on their age.
The Equal Employment Opportunity Commission
(EEOC) protects against workforce discrimination.
Companies providing workforce diversity training to
employees.
Common Social-responsible
Practices of Business
continued
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21
Job Safety is ensuring work environments
are risk-free of accidents.
What is an example of an organization or
action that enforces job safety?
What is an example of an organization or
action that enforces job safety?
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22
The Occupational Safety and Health Administration
(OSHA) gives surety to safe and healthful working
conditions for men and women.
A company’s schedule cleaning of bathrooms used by
employees three times a day.
Employees who work in a plant that manufactures
chemical are required to wear proper clothing to protect
from skin irritations
Common Socially Responsible
Practices of Businesses
continued
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23
Employee Wellness programs are offered by
employers to maintain a healthy workforce.
What are some examples of employee
wellness activities? Stop smoking and
weight-loss counseling
Evaluation of Social
Responsibility
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Benefits
–
–
–
–
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24
Expanded justice for groups of a
society.
Enhanced company image.
Reduced need for government
actions.
Improved quality of life in a
community and around the
world.
Increase awareness of social
issues among workers,
consumers, and others.
Evaluation of Social
Responsibility
The costs of providing
social programs must
be realistic to allow a
business to earn a
profit.
25
Ethics
What is the purpose of business ethics?
Business ethics address the conduct of
business and employees.
26
Ethics
Guidelines for responsible business conduct
addresses the following questions:
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27
Is the action illegal?
Does the action violate professional or company
standards?
Who is affected by the action and how?
http://www.youtube.com/watch?v=CUCSK1QFwts
&feature=related&safety_mode=true&persist_safe
ty_mode=1&safe=active
Government
protection
28
Government Protection continued
How are workers protected in their work
environments by the government?
 Safe work conditions
 Minimum standards for buildings,
machines, and chemicals
29
Government Protection continued

A contract is an agreement usually between two
parties to exchange goods or services for
something of value, usually money.
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What are the elements of a contract?
30
6 Elements of a Contract
1.
Offer
–
2.
Acceptance
–
3.
an unqualified willingness to go along with the offer
Genuine Agreement
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31
Proposal by one party to another with intent to create
a legal binding agreement
if a valid offer is met by a valid acceptance then a
genuine agreement exists
Can be destroyed by fraud, misrepresentation,
duress, or undue influence
6 Elements of a Contract
4. Capacity
–
–
Legal ability to enter into a contract
Ex Minor, mentally ill, drunk, drugs
5. Consideration
–
Must exchange something of value in order to create
a bond
6. Legality
–
32
–
Must be permitted by law
Courts will not enforce an illegal contract
Government Protection continued
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The government enforces contracts between
businesses and individuals by ensuring agreed
upon work and the exchange of money or other
means are completed.
Examples of when contracts are used:
–
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–
33
Buying an automobile
Leasing a building
Buying inventory
Oral vs. Written Contracts
Statute of Frauds – Requires that some
contracts must be in writing
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34
Contracts to pay debts of others
Contracts to pay debts of deceased persons
Contracts requiring more than a year to perform
Contracts to sell real property
Contracts for sale of goods over $500
Prenuptial contract (contemplation of marriage)
Express vs. Implied warranty
35
•
An express warranty is a verbal promise by a
company about the specific quality performance of a
product.
•
An implied warranty may not be verbally
communicated but is understood to apply anyway.
Government Protection continued
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Intellectual property protected by the
government are:
Copyrights (creative works of artists, authors)
Lifetime + 70 years
– Patents (right to make, use or sell the item for 17
years)
– Trademarks (registered words, letters or symbols
–
36
Examples of Intellectual Property
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37
Copyright: Published poem titled Still I Rise by
poet Dr. Maya Angelou
Patents: Nike’s production of the footwear
Trademarks: Starbucks symbol found on coffee
cups
Consumer Product Safety Commission
(CPSC)
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Established 1972
Federal Agency
Purpose:
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Set standards for product safety
Promoting safety from unreasonable risk of
injury from products
Testing products
Initiate recalls of unsafe products from the
marketplace
Conducting research and education
programs
? What are some recent research recalls? Go
to www.cpsc.gov and find out.
Underwriters Laboratories
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Tests electrical and other
consumer products
Consumer Safety
Can you think of places you
have seen the UL label?
Underwriters
Laboratories Inc.
Federal Trade Commission
(FTC) www.ftc.gov
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Founded in 1914
Federal Agency
Purpose:
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To protect business and consumer from
unfair competition (advertising, fraud,
bait and switch, etc.)
To enforce antitrust laws (monopoly)
To enforce truth in lending laws (credit)
To enforce truth in labeling laws
(consumerism)
Have you ever been the victim of unfair
competition?
Environmental Protection Agency
www.epa.gov
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Federal Law
–
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Environmental Protection
Act (1970)
Purpose:
–
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Sets, monitors, and
enforces environmental
standards
Researches the effects
of pollution on AIR,
WATER, LAND
Federal Aviation Administration
(FAA) www.faa.gov
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1934 – started as Bureau of Air Commerce
Expanded in 1938 by Civil Aeronautics Board
Became Federal Law in 1948 under Federal
Aviation Act (due to mid-air collisions air traffic
controllers became licensed and regulated)
Purpose
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To set safety standards
To license pilots
To regulate and monitor aircraft safety
Ensure safe navigation for pilots and aircraft
Enforced through Department of Commerce
(one of federal cabinet offices)
What are some other cabinet offices?
Federal Communications Commission
(FCC) www.fcc.gov
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Established in 1934
Federal Agency
Purpose–
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To license radio and
television stations
To oversee interstate and
international telephone and
telegraph operations
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Example: special
telephone taxesadvertised prices change
due to federal and local
(911) taxes added
Equal Employment Opportunity
Commission www.eeoc.gov
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Established in 1964
(Civil Rights Act)
Federal Agency
Purpose:
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Enforces laws prohibiting
job discrimination on the
basis of:
Race, Color, Religion,
Gender, National Origin,
Age, or Handicap
Federal Reserve Board
www.federalreserve.gov
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Established in 1913
aka “The Fed”
Purpose:
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Set monetary and credit
policies
Regulate banks in the Federal
Reserve System
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All national banks
Control money supply, regulate
interest rates, stabilize
economy
Do you know which branch of
the Federal Reserve services
the Charlotte area?
Answer-Richmond
Food and Drug Administration
www.fda.gov
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Established 1906, expanded 1931
Federal Agency
Purpose–
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Approve and issue licenses for manufacturing and distribution of
new products in market
Setting and maintaining the purity and safety standards for foods,
drugs, health aids and cosmetics
Inspecting product manufacturing facilities
Ensure accurate labeling
Removing unsafe products from the market
What book that created uproar and led to founding of FDA?
The Jungle, by Upton Sinclair
–
President Theodore Roosevelt
Interstate Commerce Commission
Surface Transportation Board
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Federal Agency established 1887
Became Surface Transportation Board (STB) in 1995
Affiliated with the U.S. Department of Transportation.
Jurisdiction over:
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Purpose:
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Railroad rates, service issues, mergers, sales
Trucking company and moving van rates
Intercity passenger bus financial, and operational matters
To set rates, routes and rules for interstate trucks, railroads
and businesses
To improve transportation safety through research, monitoring
vehicles and manufacturers for safety issues (emissions,
tires, weight, fuel consumption)
Ever see weigh stations on the interstate?
What vehicles must be checked for emissions?
National Labor Relations Board
(NLRB) www.nlrb.gov
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Established 1935
Federal Agency
Purpose:
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To protect employees against unfair labor
practices
To investigate unfair labor practices
To regulate labor unions (collective bargaining by
employees with management)
Nuclear Regulatory Commission
(NRC) www.nrc.gov
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Began in 1946 as Atomic Energy
Commission
Expanded in 1974 as NRC
Federal Agency
Purpose:
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Set standards and regulate the
operation of nuclear power plants
Issue licenses for nuclear power plants
Locally- Duke Power (McGuire
Nuclear Plant)
Occupational Safety and Health
Administration (OSHA)
www.osha.gov
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Founded in 1970
Federal Agency
Purpose:
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To promote health and safety in the workplace
To set standards of safety
To investigate violations and assess penalties for
violations
Securities and Exchange Commission
(SEC) www.sec.gov
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Founded in 1934
Federal Agency
Purpose:
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To regulate stock exchanges
To oversee investment companies and
brokers
To protect investors
? What stock exchanges can you name?
Amex, NYSE, Nikkei, London,OTC, etc
United States Postal Service
(USPS) www.usps.com
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Established in 1775 by Ben Franklin
Federal Agency
Purpose:
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To distribute domestic and international
parcels to the public
To protect consumers against mail fraud and
scams
United States Department of
Agriculture (USDA) www.usda.gov
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Federal Agency
Established in 1862 by Abraham Lincoln
Purpose:
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Ensures product safety for meat, poultry, dairy
and agricultural products-fruits, vegetables
Research and regulate production &
processing of fresh foods
Stewardship of national forests and
rangelands
Research in human nutrition & new crop
technologies
Lead anti-hunger effort with “STAMP OUT
HUNGER IN THE US”- Food stamps, WIC,
school lunch programs
Attorney General (AG)
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The attorney general
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Protects citizens from fraud and criminal acts
Stop actions of individuals or corporations by
injunctions, cease and desist orders
Files criminal actions/lawsuits against violators of
legal statutes
Government’s lawyer for the people
AG for each state and the federal
government
Office of the Attorney General
www.usdoj.gov
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Created by Judiciary Act of 1789
Evolved into the head of the Department of Justice
and chief law enforcement officer of the Federal
Government
Who is the NC Attorney General?
www.ncdoj.gov
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Who is the US Attorney General?
www.usdoj.gov
Public Utilities Commission
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Regulates prices and production of natural gas and
electricity
a governing body that regulates the rates and
services of a public utility. (natural gas, electricity)
may be owned by the consumers that it serves
OR
may be a stockholder owned utility either publicly
traded on a stock exchange (DUKE POWER)
Licensing
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Why require licenses?
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Professional licensures:
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Nurses, doctors, medical personnel
Realtors, insurance agents, stock brokers, attorneys
Plumbers, electricians, contractors
Other licenses:
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Prove knowledge of subject area
Prove identity
Raise revenues ($)
Hunting, drivers, pets, vehicle tags, open retail business,
passports, marriage
? Can you think of others?
Weights and Measures
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Standardized measurements
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Food products-prepackaged or fresh
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Pounds, Ounces, Miles, Feet, Inches
Grams, Liters, Kilometers, Meters
Steak at $10 per pound…I want accurate weight!
Vehicles-fuel pumps, air pumps, pressure, speed
Hospitals-input, output, pharmacies, medicines
? Can you think of other places that standardized
weights and measure are important?
National Highway Traffic Safety
Administration
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Division of Department of Transportation
(DOT)
Regulate highway safety standards
Research fuel consumption (estimated mpgmiles per gallon) and ways to save fuel
Investigate consumer complaints
Research on ways to increase highway
safety
Better Business Bureau (BBB)
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Established in 1912
Non-governmental agency with both
state and federal levels
Purpose:
–
–
–
–
To accept consumer complaints about
business dealings
To keep records available to public
To inform the public about unfair trade
practices and issues
to remedy problems or fulfill promises for
a product or service being questioned
Consumer Reports Magazine
www.consumerreports.org
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Established as Consumer’s Union in 1954
Expert, independent, non-profit, nongovernmental periodical
Purpose:
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–
–
To research products for safety and quality
To inform the public about safety and quality
issues for products available to the public
To provide access through the magazine and
online to inform the public
Consumer Reports ®
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ConsumerReports.org and Consumer
Reports ® published by Consumers Union
Mission:
–
–
To work for a fair, just and safe marketplace for all
consumers
To empower all consumers to protect themselves
by making good purchasing decisions
Consumer Federation of America
(CFA) www.consumerfed.org
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Founded in 1968
Part of the “consumer movement”
Purpose:
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–
–
–
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To advance the consumer interests through research,
education and advocacy
To scrutinize business practices, products and services
To raise awareness through the news media
To defend the interests of the public at large
Associated with Ralph Nader
Headquartered in Washington, DC with state and
local affiliates
Ralph Nader
“Father of the Consumer Movement”
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Graduate of Princeton Law
Became consumer
advocate in 1963 due to
concern for public welfare
Wrote book- Unsafe at Any
Speed in 1965 about the
Chevrolet Corvair that led
to the passage of national
auto safety standards
Used “crash dummies”
Consumer Movement Issues

“Nader’s Raiders” were instrumental in establishing:
–
–
–
–
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Freedom of Information Act (1966)
OSHA (1970)
EPA (1970)
CPSC (1972)
Publicly and actively addressed environmental and
health issues such as :
–
oil pipeline safety, baby foods, insecticides, mercury poisoning,
pension reform, lead paint, coal mine safety, nuclear radiation,
meat processing
Actual Instructions to Consumers:
Warning on a Korean kitchen knife:
“Keep out of children”
What should the warning be?
On a package of peanuts given to
US Air passengers.
“ Instructions: Open package, eat
nuts.”
Why do you think the package has
this warning?
QUOTE- POLLUTION
"It isn't pollution that's harming the
environment. It's the impurities in our air and
water that are doing it."
 Dan Quayle
Dilbert Ethics
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
http://www.youtube.com/watch?v=0WTkltRfp
hM&safety_mode=true&persist_safety_mode
=1&safe=active
http://www.youtube.com/watch?feature=fvwp
&v=ds1NnDC18_4&NR=1&safety_mode=tru
e&persist_safety_mode=1&safe=active
http://www.youtube.com/watch?v=TBct38Y2f
3g&feature=related