Transcript Consumer Rights and Responsiblities

Consumer Rights and
Responsibilities
Part I: Consumerism
Consumerism Vocabulary
• Consumer: A person who buys and uses
goods and services
• Goods: a product you buy that is tangible
(you can touch/feel it)
• Services: intangible; the action of doing
work in exchange for payment
• Economy: A word representing the
relationship between consumer confidence,
their spending habits, the level of
unemployment, and media reports
Consumerism Vocab
• Needs: Something you must have;
something that is essential or very important
• Wants: Something you desire
• Income: The amount of money you receive
• Budget: A plan for spending and saving the
money you have available
Introduction to Consumerism
• Chapter 13.1 in Textbook; outline
• Video-History of Consumerism
Part II: Advertising
Advertising
• Intro Video: Cracking the Advertising Code
• Target Market: A similar group of people
at which companies aim products towards
• Advertising Strategies: Different
techniques used by advertising firms to
target different consumer groups
Examples: famous people, emotion (shock,
humor, romance, etc) certain colors, logos,
icons, cute appeals, giveaways, discounts,
contests, slogans, etc
Advertising
• Advertising Methods- Ways to advertise on
a variety of resources
Examples-newspaper ad, magazine ad, TV
commercial, radio commercial, billboard,
flyers, postcards, telemarketing calls,
objects/clothing, internet, signs, people
Advertising
• Logo-an advertising strategy involving a
symbol or small design or picture that is
associated with a company
• Icon-an advertising strategy involving the
use of a cartoon or real characters, humans
or animals, that help promote a product or
company
Part III: Consumer Right to
Choose
Consumer Right to Choose
Consumers must have choice to pick from in
the marketplace. There must be competition
in the marketplace. Under our economic
system, competition generally increase the
availability of a variety of products and
services at reasonable prices. This makes our
diverse population happy as we all have
different wants and needs. The government
tries to ensure this competition by forbidding
monopolies.
CRTC Vocabulary
• Monopoly: When there is no competition
helping to keep prices fair; an instance
where one company is the only supplier of a
specific product/service; illegal in the
United States
• Comparison Shopping: Comparing
products, prices, brands, features to get the
most value for your money
• Impulse Shopper: A person who buys
things without comparing items or really
thinking about the consequences of the
purchase-they are often dissatisfied
Warranty/Guarantee : A promise by the
seller to repair or replace a product or a
particular part of the product within an
amount of time from the date of purchase
CRTC Vocabulary
• Return Policy-the terms that describe how
and when unused products can be taken
back to a place of purchase
• Consumer Reports-this resource compares
and tests products and provides unbiased
feed-back to consumers
Questions to Ask…
• Before purchasing the following items,
what questions should you ask…
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Pet
Jeans
Car
Food
Comparison Shopping
• iPod Activity (Best Buy, Target, Walmart)
• Comparison Shopping Online (Computers
and TV)
Part IV: Consumer Right to be
Heard
Consumer Right to be Heard
• If you have a fair complaint, complain!
• You have the right to reasonable
expectations (goods and services); pursue
satisfaction
• NO SCREAMING!!! Complain the right
way
• Follow the appropriate steps
CRtbH Vocabulary
• Third Party Assistance:
People/organizations you can contact to
help get satisfaction
• Better Business Bureau- an organization
that rates companies and awards a seal ot
those that show a high level of consumer
satisfaction
Steps to Complain
• Step 1-Take the product and receipt back
• Make sure you have a fair complaint. If you
do-don’t put it off! Take the item back to the
place of purchase with the receipt. If you have
lost the receipt, proceed (but it may be tougher).
If you ordered online/catalog---call customer
service
Steps to Complain
• Step 2-Go to and talk with Customer
Service
• At the place of purchase, ask to speak to
customer service. Know exactly what you want
(exchange or refund). Explain the problem
clearly and CALMLY. Do not act insulting or
threatening. Hopefully you will get what you
want. If not, ask to speak to a manager.
Steps to Complain
• Step 3-Talk to the Manager
• Speak to the manager…Again, explain the
problem clearly and calmly. Do not act
insulting or threatening. Hopefully the manager
will give you what you want. If not, politely ask
for his name (and the customer service person).
Document everything---make a written note of
all you have done up to this point
Steps to Complain
• Step 4-Complaint Letter
• Contact the store headquarters. Do this by
phone or better yet, a complaint letter. Again,
remain pleasant but firm in your request. Make
sure you mention all the dates/names from your
previous actions. Also, include that you will
seek 3rd party assistance if you do not get what
you want. 9/10 times a written letter will get
you what you want
Steps to Complain
• Step 5-Third Party Assistance
• Seek third party assistance if you do not receive
satisfaction. Use the appropriate assistance
according to the details of your specific case.
You must become your own consumer
advocate. Help other consumers avoid the same
problems. Unless you speak out, nothing will
change
Third Party Assistance
• Contact an Agency or Organization
• Example: Better Business Bureau, Federal Trade
Commission, National Bureau of Standards, Consumer
Affairs Council, American Society for Testing
Materials, Consumer product Safety Commission
• File a claim in Small Claims Court
• Costs $, must be 18 or bring a parent, for claims under
$8,000
• Hire a Lawyer
• Must pay them; for claims over $8,000
Complaint Letter
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Part 1-Heading
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Part 2-Inside Address
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Facts related to what went wrong, names and dates of when you spoke with customer
service and manager
Part 6-Paragraph #3
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Details of your purchase…What did you buy, when did you buy it, where did you
buy it, how much did you pay, and why did you buy it. NO PROBLEMS
Part 5-Paragraph #2
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Dear… (end with a colon)
Part 4-Paragraph #1
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Name of person you are writing to, the business, and their address
Part 3-Salutation
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Writer’s home mailing address with date
What do you want (exchange or refund), state a time frame; mention 3rd party
assistance, end on a positive note
Part 7-Closing
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Sincerely (your name)
Your turn!!!
You and your partner/group will write a
complaint letter. Think of an item you have
or will be purchasing for your dorm room
(example: tv, computer, accessories, etc)
Part V: Consumer Right to be
Informed
Consumer Right to be Informed
• Government required information must be clearly stated and easily
found. Your right to information is guaranteed by federal and state
laws and regulations. It is your responsibility to locate and use
required product information. If you chose to be uninformed you might
be injured physically or financially by your purchase. Consumers must
be given the accurate information they need to make wise choices and
to be protected from false advertising, mislabeling, and
misrepresentation. Much of the information that could help you as a
consumer is found on product advertising and on package labels.
Magazines such as Consumer Reports, and comparison shopping
websites can point out features and other information about products.
If advertising claims you read or hear are not necessarily true, a
disclaimer statement must be present
CRtbI Vocabulary
• Disclaimer Statement: A statement
releasing the company of responsibility
• Fine Print: A part of an agreement or
document that spells out restrictions and
limitations often in small print
• Contract: A business arrangement for the
supply of goods and services at a fixed rate;
a binding agreement between two or more
persons or parties
Product Information
• Where to find product information
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Websites
Product Guides/Manuals
In-Store (from salesperson)
Magazines/Newspapers
Word of Mouth
Nutrition
Labels
Care
Labels
Right to be Informed Review
• What should we limit?
• What should we get enough of?
• Why do we need to pay attention to the
serving size?
• What part of the label does not change?
Right to be Informed Review
• Why is it important to read clothing care
labels?
• If we don’t follow instructions, what could
happen?
• What else besides clothing do you think has
a care label on it?
Right to be Informed Review
• What do these symbols mean?
Part VI: Consumer Right to
Safety
Consumer Right to Safety
• Products must be tested and meet safe standards. NO
government can ever completely protect its consumers.
There are three United States federal agencies responsible
for our consumer safety. They are the Department of
Agriculture, the Food and Drug Administration, and the
Consumer Product Safety Commission. Almost any
product used incorrectly has the potential to harm
someone. These agencies weigh the potential benefit of
using a product correctly against the potential risks and
either “pass” or “reject” the product from being sold.
CRtS Vocabulary
• Product Recall: A request going out to
buyers asking them to return an unsafe
product to the manufacturer
• Consumer Product Safety Commissionan organization that requires products to be
tested to check for safety
• Federal Trade Commission-a government
organization that supports consumer rights
and tires to keep them protected gainst false
advertising, scams, fraud, and identify theft
Government Agencies
• Department of Agriculture
• http://www.usda.gov/wps/portal/usda/usdahome
• Food and Drug Administration
• http://www.fda.gov/
• Consumer Product Safety Commission
• http://www.cpsc.gov/en/
Product Recall Information
• Where to find recall information online
• http://www.foodsafety.gov/index.html
• Store Websites (ex: www.target.com )
Product Manuals
• Find safety information in manuals/user
guides
• Ex: Xbox (http://support.xbox.com/enUS/xbox-360/manuals-specs/manual-specs )