Transcript Be a Wise Consumer_2

Be a Wise Consumer
The purpose of this presentation is to help consumers
understand the rights & responsibilities of buyers and
sellers under consumer protection laws, as well as
what factors to consider when making buying
decisions.
In your Journal
 Take
notes on the information in
Blue
Consumer Protection:
Where it all started
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Consumer Bill of Rights (State of the Union Address
of 1962-President John F. Kennedy)
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The right to safety & protection against practices that result
in noncompetitive prices for goods and services available
The right to be informed and protected against false and
misleading advertising
The right to be heard & guaranteed consumer
representation when using government policies and
enforcement of consumer protection laws
Fair Credit Reporting Act of 1970
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Stipulates how Consumers and Creditors
resolve disputes.
Consumers have the right to receive one free
credit report per year
(annualcreditreport.com)
Consumers can write a 1 page explanation if
information in your credit report is incorrect.
Truth in Lending Act
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Creditors must make a complete account of
credit costs and terms.
The Equal Credit Opportunity Act
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Creditors cannot discriminate on the basis of
the following:
Sex
Marital Status
Race
Religion
Age
The Fair Credit Billing Act
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If you think there is an error on a bill, you
must complain in writing within 60 days after
the bill is mailed
Better Business Bureau (BBB)
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A nonprofit , business-sponsored agency,
dedicated to educating consumers, helping to
resolve disputes, and promoting honest
business practices (www.bbb.org)
Federal Trade Commission (FTC)
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A federal agency which protects consumers
against false advertising, illegal sales
schemes, and unfair trade practices
(www.ftc.gov)
Pyramid scheme
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A type of illegal and fraudulent system which
requires an endless stream of recruits in
which people pay to join and organization in
exchange to the right to sell memberships to
others.
Bureau of Consumer Protection
(A division of the FTC)
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A federal agency which provides state and
local consumer protection to help answer
consumer problems and enforce consumer
protection and fraud laws
Consumers Union
(Consumer Product-Testing Organizations)
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A non-profit organization that helps guide
consumers in the market-place with testing.
Through its monthly magazine, Consumer
Reports. Consumer Union gives tests results
and product ratings.
(www.consumerreports.org) Other consumer
magazines and web sites are Consumers’
Research and Changing Times.
Food & Drug Administration (FDA)
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A federal agency which sets and enforces
safety standards for consumable products
such as food, drugs, and cosmetics
(www.fda.gov)
Warranty
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A company’s promise that its product will
meet specific standards over a given time
period or replace or refund
Limited Warranty
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May require the consumer to pay labor or
handling charges
Implied Warranty of Merchantability
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The product does what its name implies.
ie: Advertising snow tires, but they aren’t
actually good in the snow.
Monopoly
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A company that has an unfair advantage over
competitors in an area of business
CONSUMER RIGHTS AND
RESPONSIBILITIES
RIGHT:
To Get Reliable Help
Food and Drug
Administration (FDA)
Consumer Product
Safety Commission
(CPSC)
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BBB
FTC
RESPONSIBILITY:
To use products safely
 read information, use
care booklets & products
properly
To speak up
 Complaint letters
Consumer Product Research Project
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What Criteria should you consider
when making a buying decision?
Things to consider
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What features do you want?
What products are available in your price
range?
Where should you purchase it?
What happens if it doesn’t work as indicated?
USE CONSUMERREPORTS.ORG
Username: WarriorsPFin
Password: Edmonds2014
After you have done the Research
Now, collaborate with another student
(2-3 in a group) who researched the
same product and create a “Best Buy”
product flyer.
It should be well designed (Publisher) &
Informative for the Consumer
– use rubric & be ready to present Friday