chapter 10

right to be forgotten

ask to remove from internet search results some personal information which is believed was damaging

big data

technology gives businesses access to a great deal of information

consumers’ shopping habits are a rich source of data for businesses

managers often find that their strong attraction to using this can be at odds with the protection of individuals’ rights to their own information

the right to be informed (1/5 rights of consumers)

protection against misleading advertisement, labeling, and to be given the facts to make an informed purchasing decision

the right to safety (1/5 rights of consumers)

protection against the marketing of goods that are hazardous to health or life

the right to choose (1/5 rights of consumers)

assurance of access to a variety of products and services at competitive prices

the right to be heard (1/5 rights of consumers)

assurance that consumer interests will receive fair consideration in government policy and courts

the right to privacy (1/5 rights of consumers)

assurance that information disclosed in a commercial transaction is not shared with others

consumerism (1/4 methods of protecting consumers)

consumers act to protect their own interests

government regulation (1/4 methods of protecting consumers)

the government regulates product safety

industry “self-regulation” (1/4 methods of protecting consumers)

businesses and industries protect their customers through product recalls, quality programs, and voluntary codes

law/courts (1/4 methods of protecting consumers)

people sue when they are injured by a product

consumerism/consumer movement

collective efforts by consumers in many countries to safeguard their own rights

as long as business has existed, consumers tried to protect their interests when they go to the marketplace to buy goods and services

reasons for consumer movement

consumers struggle to evaluate the quality of complex products (smartphones)

more specialized services and products are difficult to judge (health plans, credit cards)

advertising may contain inflated claims or appeals to emotion

technology has permitted businesses to learn more than ever about their customers

some businesses have ignored product safety

information protection examples

labeling and disclosure requirements

prohibition of false or misleading advertising

direct hazard protection examples

motor vehicle safety standards

product recalls

pricing protection examples

monopolistic practices

liability protection examples

legal redress for injury

privacy protection examples

data on children

consumer protection agencies examples

food and drug administration

consumer financial protection bureau

behavioral advertising

advertising that is targeted to particular customers, based on their observed online behavior, intended to be tailored to a user’s interests and preferences

behavioral advertising benefits

buyer is more likely to recieve messages that are relevant

the seller is more likely to reach prospective customers

behavioral advertising risks

consumers may be denied opportunities, such as credit, based on their online profiles

information collected by behavioral advertisers may not be kept private and secure

consumer self help (1/3 ways to protect consumer privacy while fostering internet commerce)

internet users should use technologies that enable them to protect their own privacy

industry self-regulation (1/3 ways to protect consumer privacy while fostering internet commerce)

internet-related businesses advocate being allowed to regulate themselves

privacy legislation (1/3 ways to protect consumer privacy while fostering internet commerce)

factor new government regulations protecting consumer privacy online

product liability

the legal responsibility of a firm or injuries caused by something made or sold

in the US and some other countries, consumers have the right to sue and collect damaged if harmed by unsafe products

consumer advocates and trial attorneys have supported these legal protections

by contrast, some in the business community have argued courts and juries have unfairly favored plaintiffs and have called for reform

strict liability

the legal standard applied to manufacturers in the US, they are responsible for injuries resulting from use of their products, whether or not they were negligent or breached a warranty

may be held liable, whether or not they knowingly did anything wrong

alternative dispute resolution (ADR)

an approach to settling disagreements between companies and consumers without going to court

meditation (1/2 form of ADR)

a voluntary process to settle disputes using a third party neutral

arbitration (1/2 form of ADR)

the use of an impartial individual to hear and decide a case outside of the judicial system

quality management

all measures an organization takes to assure quality

taking steps at all stages of the production process to ensure consistently high quality has many benefits

building products right reduces the risk of liability lawsuits and builds brand loyalty

voluntary codes of conduct

businesses in some industries have banded together to agree on voluntary codes of conduct, spelling out how they will treat their customers

consumer affairs departments

manage a complex network of contacts with customers

handle consumer inquiries and complaints about a company’s products and services

product recalls

occurs when a company, either voluntarily or under an agreement with a government agency, takes back all items found to be dangerously defective

the public may be not aware of them, so dangerous products continue to be used

achievements of the consumer movement

better information about the goods and services they purchase

being more aware of their rights when something goes wrong

being better protected against inflated advertising claims, hazardous or ineffective products, and unfair pricing