Transcript Consumer Rights and Responsiblities

Consumer Rights and
Responsiblities
Part I: Consumerism
Introduction to Consumerism
• Chapter 13.1 in Textbook; outline
• Video-History of 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—consumer spending has an impact on the
economy
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 spending and saving tool that is
used to track where your money goes and
how it is spent
Price
• What influences the price of a product?
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Ideas?
Sales Tax
Shipping and Handling
Additional Components ( batteries, cables,
cases, software, adapters, ink, etc)
• Advertising (the strategies and methods
companies use directly influence the price of a
product)
Place of Purchase
• Check out the place of purchase
• Verify the return policy
• All Sales are Final is not a consumer friendly return
policy
• Being able to return/exchange a product within a
specified time frame IS a consumer friendly return
policy
• Check for knowledgeable customer service
• Do they have a customer satisfaction policy
• Check out their website
Place of Purchase
• Online Shopping
• Be safe!
• Most valuable piece of personal information is
your SOCIAL SECURITY NUMBER!
• Shop with companies you know
• Use a credit card –safest (we are protected
under the Fair Credit Billing Act)
• Check return policy
• Make a copy of everything
• Check privacy policy
• Keep passwords private
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
Color in Advertising
• Red-make your heart beat faster and
increase adrenaline, communicates power,
stimulating, very attractive, demands
attention
• Yellow-most visible, makes packages
appear larger, reminds us of the sun/warmth
and happiness; if misused can detract from
product quality
Color in Advertising
• Orange-warm flame-like, associate color
with flavor, positive affects on emotions
• Pink-feminine color, comfort, relaxing
• Purple-symbolizes royalty/beauty,
associated with grape
• Blue-cleanliness/purity, associate with sky
and water, peace, serenity, confidence,
knowledge, credibility
Color in Advertising
• Green-not used to advertise food (moldy),
bright-natural, healthy, alive; darkdecaying/sick
• White-fresh and light, purity
• Black-elegant and sophisticated, sleek,
mysterious
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: involves
researching products and choosing the best
product base on price, features, and product
ratings
CRtC Vocabulary
• 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
• Satisfaction Guarantee- promise from the
seller or manufacturer to replace a product
that is defective or give the consumer a full
money refund
• 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
• What is Comparison Shopping
• Researching products and choosing the best
product based on price, features, and product
ratings
• 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 to
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
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 that protects a
company from consumers wanting to sue them for
any reason
• Fine Print: A part of an agreement or document
that spells out restrictions and limitations often in
small print; very important! ALWAYS READ!!
• Contract: a legal binding agreement between two
parties (ex: buyer and seller)
• Unit Price: price per unit (per
ounce/pound/inch/piece); packages can be deceiving
• Weights and Measures-stated on front of food
packages to help consumers make fair comparisons
Product Information
• Where to find product information
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Food Labels
Packaging
Care Labels
Websites
Product Guides/Manuals
In-Store (from salesperson)
Magazines/Newspapers (Consumer Reports)
Word of Mouth
Nutrition
Labels
Weights and Measures
• All bottles, cans, boxes, bags, etc of
food/beverage must state the liquid or
weight of what is in that container
somewhere on the front label. I tis
necessary to examine the amount in the
package if you are comparing prices.
Compare “per unit” price such as per ounce
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 against
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 )