Transcript File - Mr. Catalano

Consumer Protections
Consumer Movement
A
movement by the public to
promote the interests of consumers.
Consumer Movement
First Era

Dr. Harvey Wiley – (1880s)
–
–
Mislabeled foods and drugs
Food and Drug Act of 1906.
Upton Sinclair – (1900s)

–
–
The Jungle
Meat Inspection Act of 1906.
Consumer Movement
Second Era

Stuart Chase and F.J. Schlink (1927)
–
–
Your Money’s Worth
Misleading advertising.
Rachel Carson

–
–
–
Silent Spring
Pesticides on songbirds
Environmental laws
Consumer Movement
Third Era
1.
Ralph Nader
1.
2.
3.
Unsafe at any Speed (1965)
Car defects
“Most influential consumer
advocate in U.S. history”
Consumer Agencies

Federal Trade Commission (FTC)
–
Protecting consumers from unfair
business practices such as
misleading information in advertising
or labels
Consumer Agencies
Consumer Product Safety Commission
(CPSC)
–
–
Protects consumers from dangerous products.
Examples: toy and home goods
Environmental Protection Agency (EPA)
–
–
Protects the environment
Sets standards for business
Consumer Agencies
Food & Drug Administration: (FDA)
 Dept. of Agriculture: (USDA)

–

Security & Exchange: (SEC)
–

Regulates financial markets & credit
National Highway Traffic Safety Assn.
–

Inspects all produce & meats
Regulates all cars and roads
Federal Communication Commission: (FCC)
–
Radio, TV, Satellite and Cable
Name The Agency!!!
Do We Need Them?
Name that Agency!
A tobacco company just released a new brand
of cigarettes they claim will give you energy
after smoking. The box advertises that
smoking one cigarette is like drinking three Red
Bulls. Of course this is not true.
Federal Trade Commission
Name that Agency!
A toy company releases a new product called
Fun with Fire, a kit that lets kids build Molotov
Cocktails and other explosive devices.
Consumer Product Safety
Commission
Name that Agency!
Ford just released a new sports car that is the
fastest production car every made, however,
the car is known to burst into flames once it
reaches 80 mph.
National Highway Safety Association
Name that Agency!
Tony, a meat-processing worker, accidently
falls into a meat-grinding machine and
quickly becomes ground beef. Throwing
the meat away and cleaning the machine
will cost thousands of dollars. So the clever
company decides to continue production
and markets the meat as “Italian Flavor”.
Department of Agriculture: USDA
Name that Agency!
A cosmetic company just released a new
eyeliner color called “Fire” - its main
ingredient: Tabasco sauce.
Food & Drug Administration
Name that Agency!
Al Roker of the Today Show has now
decided he will do the morning weather
report in the nude. When asked why, he
replies, “it just feels right”.
Federal Communication Commission
Warranties

Implied warranty
– Unwritten guarantee consumers should expect.
–Product should do what its intended for.

Express warranty
–A
statement which presents a specific quality of
performance feature of a product

“As-Is” Products
–No
warranty provided
–Used goods
Better Business Bureau
Nonprofit organization created to help
consumers and business
1.
2.
3.
Assist with resolving issues
Keeps records of complaints
Educate consumers
Consumers Unions

Non-profit companies that tests products and
rates them on the basis of their quality.
–
E.g. Consumer Reports Magazine
Underwriters Laboratories

Checks products for safety from fire, electric
shock and other hazards.