Transcript Standard 3 Objective 4 Describe the rights and responsibilities of

Standard 3
Objective 4
Describe the rights and responsibilities
of buyers and sellers under consumer
protection laws.
Terms

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 choose-protection against practices that result
in noncompetitive prices for goods and services available
The right to be informed-protection against false and
misleading advertising
The right to be heard-guarantee of consumer
representation in the deciding of government policy and
enforcement of consumer protection laws
Better Business Bureau (BBB)

A nonprofit , business-sponsored agency with
local offices dedicated to educating
consumers, helping to resolve disputes, and
promoting honest business practices
(www.bbb.org)
Food and Drug Administration (FDA)

A federal agency which sets and enforces
safety standards for food, drugs, and
cosmetics (www.fda.gov)
Consumer Product Safety Commission
(CPSC)

A federal agency which sets and enforces
safety standards on household appliances,
toys, and tools (www.cpsc.gov)
Federal Trade Commission (FTC)

A federal agency which protects consumers
against false advertising, illegal sales
schemes, and unfair trade practices
(www.ftc.gov)
Federal Citizen Information Center
(FCIA)

Assists federal agencies in the development,
promotion, and distribution of practical
consumer publications
(www.pueblos.gsa.gov)
Bureau of Consumer Protection
(A division of the FTC)

A federal agency which provides state and
local consumer protection to help answer
consumer problems and enforce consumer
protection and fraud laws
Consumer Unions (Consumer ProductTesting 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.
Monopoly

A company that has an unfair advantage over
competitors in an area of business
Warranty

A company’s promise that its product will
meet specific standards over a given time
period or replace or refund
Full Warranty

A written promise that the company will repair
or replace a defective or dissatisfied product
at no charge.
Limited Warranty

May require the consumer to pay labor or
handling charges
Implied Warranty of Merchantability

The product is what it is called and does what
its name implies
Implied Warranty of Fittness

The product is fit for any performance or
purpose promised by the seller
PRESENTATION: Standard 3 Objective 4
Describe the rights and responsibilities of
buyers and sellers under consumer protection
laws.

Explain the purposes and features of
consumer protection laws, agencies, and
sources of assistance
CONSUMER RIGHTS AND
RESPONSIBILITIES
RIGHT:
*To safety
 Food and Drug
Administration (FDA)
 government protection
 Consumer Product
Safety Commission
(CPSC)
RESPONSIBILITY:
*To use products safely
 read information, use
care booklets
*To be informed
 Protection against false
and misleading
information
*To seek information
and use it to make
decisions
 Choose appropriately
*To choose
 A variety of products
 Competitive prices
 No monopolies
*Choose goods and
services carefully
 Shop a variety of
places
 Use consumer
magazines
*To be heard
 Complain
 BBB
 Consumer protection
Agency
*To speak up and let
likes and dislikes be
known
 Complaint letters
 Support reputable
businesses
Terms (cont.)
Identity Theft-”True-name fraud”

Someone wrongfully acquires and uses a
consumer’s personal identification, credit, or
account information
Fraud

A deliberate deception, designed to secure
unfair or unlawful gain. (“Cheating the
Consumer”)
Scam

Fraudulent or deceptive schemes
Pyramid schemes

A type of financial fraud in which people pay
to join and organization in exchange to the
right to sell memberships to others.
Phishing

An e-mail scam that attempts to trick
consumers into revealing personal information
PRESENTATION: Standard 3 Objective 4
Describe the rights and responsibilities of
buyers and sellers under consumer protection
laws.

Describe ways to avoid “identity theft” and
fraud (e.g., keep Social Security numbers
secure, properly dispose of outdated
documents.
PRESENTATION: Standard 3 Objective 4
Describe the rights and responsibilities of
buyers and sellers under consumer protection
laws.

Describe ways to avoid financial scams and
schemes designed to defraud consumers
(e.g., Ponzi and pyramid schemes, affinity
fraud)