consumer powers and protections. the power of consumers protecting consumers’ rights safeguarding...
TRANSCRIPT
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Consumer Powers and Protections
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Consumer Powers and Protections
The Power of Consumers Protecting Consumers’ Rights Safeguarding Your Privacy Recognizing Deception and Fraud Resolving Consumer Problems
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The Power of Consumers
Economic roles of individuals Ways that consumers influence the
marketplace Impact of technology on consumers Effective uses of consumer skills
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Economic Roles of Individuals
Consumer- use goods/services– Consumers have an impact on mktplce
Consumers spend $bus. makes $ee’s make $spend Worker- earn $ at job Citizen- use public services/pay taxes/vote1. How are the roles interrelated? How might a
person fill all three?Draw a diagram that illustrates how decisions made by
individual consumers affect the marketplace.Interview someone who owns a retail store in the
community and ask how the store strives to please its customers through products, services, and atmosphere.
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Teens as Consumers
Spend $170 billion annually Family buying decisions
– Household shopping– Provide input
How could you help your family make wise buying decisions?
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Technology and the Consumer
Changes in technology– Communication– Accessing information– Purchasing goods and services
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Effective Consumers
Set goals– Decide what u want, how to carry out the plan– Set priorities on time, energy and money– Plan for career, education, training
Think critically– Carefully consider alternatives and their outcomes– Avoid acting on impulse– Stay realistic upon encountering persuasive ads/aggressive people
Do their research– Read, observe, ask ?s about options available– Search for reliable businesses– Compare prices, quality, features, and customer service policies
Manage everyday finances– handle income, expenses, taxes, banking, and credit in a responsible way
Plan for financial security– Set plans for savings, investing, and insurance, call professionals for help
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Protecting Consumers’ Rights
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Protecting Consumers’ Rights
Consumer rights and responsibilities Identify laws that protect consumers Describe sources of consumer information
and protection
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The Consumer Movement
Unfair treatmentadvocacy– The power of consumers=economic and political
power of bus and industry
Consumer advocates– St and ntnl levels:
Investigate bus practices Expose unfair or dangerous situations Encourage the passage of laws protecting consumers
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Consumer Advocates
Harvey Wiley Proved chemicals added to foods were dangerous
Food Drug Act of 1906
Upton Sinclair His novel exposed filthy condtns n meat packing plant
Meat Inspection Act of 1906
Stuart Chase
F.J. Schlink
Published book about misleading advertising
Your Money’s Worth-1927
Rachel Carson Published book about environmental protection (pesticides, insecticides)
Silent Spring-1962Inspired envrnmntl laws
Ralph Nader Published a work regarding defects in cars causing deaths
Unsafe at any speed 1965
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Think…
What new issues can you think of that must be addressed to protect consumers in the marketplace today?– List 3 in your notes.
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Consumer Rights and Responsibilities
Consumers have rights! 4 rights identified by JFK in his message to congress
in 1962– Expanded into “Consumer Bill of Rights”
Groups of 2: – Link to Rights/Responsibilities– Create a brochure (rights/responsibilities)– Create skit of a right or responsibility (10 min.)
Complete the sentence:– “I showed consumer responsibility when I ….”
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Government Protection
Consumers can seek legal remedy when wrongs are done to them– Right to redress (seek remedy for a wrong/loss)
Think….– President Gerald Ford promoted the right to
consumer education, expressing his hope that it would become “an integral part of regular school instruction.”
– What impact does this right have on you?
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Federal Laws
Link to chart pg. 30 Make flash cards for the federal laws on
chart
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Federal Agencies
Enforce laws Set up rules and reg’s to ensure compliance Federal Agencies Table
*Some agencies also protect bus’s
Have you ever observed one of these consumer protection laws in action?
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State and Local Laws
St and local legislators passed laws– To find state and local agencies:
Check govt listings in phone book Visit FCIC-Consumer action website Other websites:
– National Association of Attorneys General– National Association of Consumer Agency Administrators
1. Visit the website of your state attorney generalWhat measures do they take to protect consumers in KY?
2. Find the name of a current piece of consumer legislation in Congress. Write a summary of this bill’s purpose.
3. KY attorney general website: create newsletter from the attorney general Jack Conway informing them of their efforts and anything new they are working on.
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Other Consumer Assistance
Consumer groups- focused on consumer education, protection, and advocacy
Consumer testing agencies and publications- buy products, test them, report the results
Business and industry groups- (BBB)-provide reliability reports on bus’s & allow consumers to file a complaint
– Consumer affairs departments-bus’s have full-time comm. w/ consumers about their rights/needs
– Consumer action panels-grp formed by trade assoc to address complaints
– BBB website-research a company and a charity News media- warn consumers about local scam artists who try to
cheat consumers (alert consumers about it and what to do)
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Media Reporter Activity
Assume the role of a media reporter Write a story about a fictitious consumer
complaint
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Safeguarding Your Privacy
Ways to protect yourself Laws that protect consumer privacy Guidelines for preventing online harassment
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Identity Theft
Threat to personal security Identity theft- the illegal use of an individual’s
personal information Social Security number-unique 9-digit number
– Do not give it out or carry your card with you– Some agencies ask for it that have no right 2 it
Identity theft: How does it happen?
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Preventing Identity Theft
Safeguard your SS # Handle mail with care Personal info in locked drawer Safeguard sensitive info on computer with
passwords (#s & letters)- Don’t share or write down where can b found
Don’t give out personal info over phone, through mail, email or web unless initiated
Secure sites-websites that use safeguards (shttp:// or https://)
Secure your home Internet connection Shred personal info
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If Your Identity is Stolen…..
1. File a report with the police2. Notify your bank and credit card companies3. Close any accounts4. Call the 3 major credit reporting companies
and ask for a fraud alert and no new accounts be opened
1. Equifax, Experian, and TransUnion
5. Call the FTC or visit it’s website for info about resolving problems
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Data Collection and Privacy Issues
You may have to provide personal info to:– financial institutions, health care providers, insurance
companies – when you buy or register a product
What do the companies do with all of your information?– CC #s –most keep secure– Their own marketing purposes– Sell your info to other retailers– Analyze your surveys for their benefit (product development)
Creat a chart displaying the advantages/disadvantages of having personal info used for each
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Protecting Your Privacy
Co’s provide choices on how your info is used Law addressing consumer privacy are being
developed– Ex: Financial institutions privacy policy (have to give you a
copy)– Ex: Children’s online privacy protection act-post privacy
policy, get parent permission Who oversees this act?
– FTC Check all companies privacy policies before
providing your info May have right to “opt-out” of info sharing Shred all documents with your info Unsolicited requests for your CC # or info-NO!
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Online Profiling
OP-practice in which companies collect info about the websites a consumer visits, then use info to predict what you may buy in future
1. How do you feel about websites’ use of cookies to remember info about you?
2. Do you consider this a useful feature or an invasion of privacy?
3. Is it worth the inconvenience to set your browser to reject cookies?
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Internet Safety
Keep info private in: chat rooms, forums, IM– Anyone can obtain it once its out there!
Cyber-stalking- online harassment – Spread false info about you– Give your email-you will receive threatening emails
Prevent online harassment:– Reveal as little info as possible (gender neutral names and
addresses)– Share email with friends and family only-alternate for online stuff– Watch what you say online-don’t create enemies– Block transmission of mail, chat or IMs from ones you don’t know– Save harassment as proof, tell administrator and law enforcment
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Recognizing Deception and Fraud
After studying this you should be able to… Recognize examples of deception and fraud Explain how to report deception and fraud
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Deceptive Advertising
Dec. Advtsg-advertising that is likely to mislead consumers through false statements, omitted info, or other means.– Unfair advantage of consumer– Illegal-FTC empowered to stop it
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Deceptive Ad. Examples
Bait and Switch-advertises an item but does not sell at that price and offers another
False promise of free gifts-”free gift” must have no strings attached (have to buy to receive gift-not free)
Deceptive pricing-advertise as sale but actually same price
Hidden catches-additional feesprocessing fees, hidden restrictions, etc. Ad has to disclose this!
Activity: Role-play-deceptive ads
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Fraud
Fraud-deceitful conduct designed to manipulate another person for some gain.– Lying, repeating something known 2b false,
concealing a fact that could have changed dec.– Ex: Give to “charity”person keeps it– Ex: seller sells item they know 2 not work right
Illegal According to US Dept of Justice: 24 mill ppl victimsALWAYS CHECK FINE PRINT!
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Pyramid Schemes
Pyramid schemes-an illegal get rich quick plan– Try to pass it as a “gift” or a “multi-level marketing plan”
Impossible to sustain Only individuals who start will make money
Search the FTC website for the difference between pyramid schemes and multi level marketing plans
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Chain Letter
Chain letter- message sent by postal mail or email that instructs the recipient to send copies to a certain number of people
Fraudulent & illegal when:
item of value
item of value
Ex: “Send $5 to 1st person on list, remove name, add your name to bottem, send letter to several people
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Fraud and Technology
New types of fraud using Internet– Chain letters (email)– Pyramid schemes (websites)
Technology used to combat fraud– “teaser-sites”
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Warning signs of deception and fraud
Businesses won’t reveal physical location (city and state)
Require u 2 pay up front 2 receive info or opportunities to make $
High pressure sales tactics requiring immediate “today only”
Anything that fits pyramid or chain letter description Exaggerated claims that seem too good 2b true
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Reporting
FTC website– Information– Consumer complaint form
National Fraud Info Center– Website and toll free number
Local consumer protection agency BBB State attorney general’s office Post office (if was in mail) Local media
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Resolving Consumer Complaints
Demonstrate how to make an effective consumer complaint
Identify sources of assistance for resolving consumer problems
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Registering a Complaint
State problem clearly, ID desired outcome, receipts, know stores policies
Contact Merchant- contact person on level you worked with or go to website (FAQs)– Be polite, professional – Take notes– May need follow up inquiry-higher position
Letter of complaint (may write more than 1)
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Dispute Resolution
Use a dispute resolution program:– Mediation– Arbitration
Legal action– Small claims court –up to $5000– Lawsuit (legal aide if no $)– Class action suit-lawsuit filed on behalf of grp