Unit 12 Part 2

regulates advertisements to make sure they are not misleading or false

federal trade commission (FTC)

inspects meat, egg, poultry, and catfish products to make sure they are safe, grades several food products, makes sure livestock is treated humanely

US Department of Agriculture (USDA)

inspects fish, fruits, and vegetables, oversees the safety and labeling of drugs, cosmetics, dietary supplements, medical devices, and food

Food and Drug Administration (FDA)

sets safety standard for motor vehicles and enforces them

National Highway Traffic Safety Administration (NHTSA)

monitors and investigates the safety of furniture, cribs, toys, electronic devices, and power tools

Consumer Product Safety Commission (CPSC)

regulates how banks and other financial institutions deal with consumers, handles complaints about mortgages, credit cards, and student loans, provides materials for consumer education

Consumer Financial Protection Bureau (CFPB)

demand that a company stop manufacturing and selling a defective product and repair and replace it for free

recall

North Carolina Utilities Commission (short answer)

regulates and sets the price for gas and electricity companies

oldest regulatory agency in NC, governed by 7 commissioners who are appointed by the gov and general assembly, 6 year terms

North Carolina Utilities Commission

North Carolina Department of Insurance (short answer)

regulates insurance companies, handles complaints about insurance, investigates insurance fraud, licenses insurance agents and adjusters

nonprofit organization that handles consumer complaints about businesses, includes insurance and charities

Better Business Bureau (BBB)

nonprofit that tests and rates products

Consumer Reports

Cultural practice, based on the idea that increasing the demand for goods and services is a positive goal for society and increases the happiness of individual consumers as those goods and services become available

Consumerism

Obsession with possessions

Materialism

uses action by organized groups to influence the business practices of certain companies or industries

Consumer Activism

Things a socially conscious company practices (3)

protecting the environment, showing commitment to diversity by hiring from different racial and ethnic groups, donating money

Refusal to buy a good or service until something changes

Boycott

How consumer-driven decisions impact the economy (2)

Can cause expansion or troughs in the business cycle, cause business to change or create new products

what will happen is businesses do not respond to consumer-driven decisions

they will lose business

advertising contributes to almost what percent of the US GDP

20%