Transcript Bureau of Consumer Protection

Consumer Protection
Part I in a three part series on Consumerism.
Created by Cynthia
Thomas and Dr. Frank
Flanders
Key Terms
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Better Business Bureau
Food and Drug Administration
Consumer Product Safety Commission
Federal Trade Commission
Coercive Monopoly
Advertisement
Bureau of Consumer Protection
Warranty
Full Warranty
Limited Warranty
Implied Warranty of Merchantability
Implied Warranty of Fitness
The 3 Aspects of Consumerism
1. Protection of Consumers’ Rights:
The movement seeking to protect and
inform consumers by requiring such
practices as honest packaging and
advertising, product guarantees, and
improved safety standards.
2. Belief in Benefits of Consumption:
The theory that a progressively greater
consumption of goods is economically beneficial.
3. Materialistic Attitude:
Attachment to materialistic values or
possessions.
Consumer Protection
The protection of
the rights’ and
interests of
consumers,
especially with
regard to price,
quality, and
safety.
Consumer protection covers a wide range
of topics, including but not necessarily
limited to product liability, privacy
rights, unfair business
practices, fraud, misrepresentation, and
other consumer/business interactions.
Government protection of consumer
rights
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There are several government agencies
designed to protect different aspects of
consumer rights.
Better Business Bureau (BBB)
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The BBB was founded in 1912. It
is a corporation consisting of
several private business
franchises of local BBB
organizations
The BBB goal is to foster a fair and
effective marketplace, so that
buyers and sellers can trust each
other ("Start With Trust").
BBB (continued)
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BBBs gather and report information on
business reliability, alert the public to frauds
against consumers and businesses, provide
information on ethical business practices,
and act as mutually trusted intermediaries
between consumers and businesses to
resolve disputes.
News media frequently turn to the BBB as an
expert source of news about scams and
consumer issues.
Food and Drug Administration (FDA)
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An agency of the United States Department of Health and Human
Services, created in 1918.
Responsible for protecting and promoting public health through
the regulation and supervision of food safety, tobacco
products, dietary supplements, prescription and over-thecounter pharmaceutical drugs (medications),vaccines,
biopharmaceuticals, blood transfusions, medical
devices, electromagnetic radiation emitting devices
(ERED), veterinary products, and cosmetics.
Consumer Product Safety Commission
(CPSC)
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An independent US agency
created in 1972 through the
Consumer Product Safety Act
to protect “against
unreasonable risks of injuries
associated with consumer
products."
The CPSC is an independent
agency that does not report to
nor is part of any other
department or agency in the
federal government.
Federal Trade Commission (FTC)
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Established in 1914 by the Federal
Trade Commission Act.
Its principal mission is the promotion of
"consumer protection" and the
elimination and prevention of what
regulators perceive to be harmfully
"anti-competitive" business practices,
such as coercive monopoly.
Coercive Monopoly: business concern
that prohibits competitors from entering
the field, with the natural result being
that the firm is able to make pricing and
production decisions independent of
competitive forces.
FTC (continued)
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Also protect consumers against false
advertising, illegal sales schemes, and all
unfair trade practices.
Advertising: a message to persuade
consumers to buy something.
We can be confident in most of the things we
buy because the FTC regulates advertising!
Bureau of Consumer Protection
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Part of the FTC, to protect
consumers against unfair or
deceptive acts or practices
in commerce.
Have you ever heard of the
US National Do Not Call
Registry? This gives
consumers the opportunity
to limit the telemarketing
calls they receive.
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This registry is the
responsibility of the Bureau
of Consumer Protection.
How else are you protected?
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WARRANTY: This is a statement made by a manufacturer or seller of a
product or service concerning the responsibility for quality,
characteristics, and performance of the product or service.
FULL WARRANTY: Repair or replacement must be free, in a
reasonable amount of time, without placing unreasonable demands on
the consumer.
LIMITED WARRANTY: May require the consumer to pay labor fees or
handling charges and may require the consumer to ship the product to
the seller or an authorized service dealer for repairs.
IMPLIED WARRANTY OF MERCHANTABILITY: The product actually
is what it is called and does what its name implies.
IMPLIED WARRANTY OF FITNESS: The product is fit for any
performance or purpose promised by the seller and that there are no
defects in the product at the point of sale.
Warranties
What type of warranties have
you heard of?
What products or services
typically have warranties?