Consumer Rights and Protections

Flashcards from lecture notes on consumer rights and protections.

Federal Trade Commission (FTC)

Promotes free and fair competition, regulates interstate trade, sets truth in advertising and labeling standards, and prosecutes unfair and deceptive business practices.

Consumer Product Safety Commission (CPSC)

Protects consumers from risk and injury from consumer products, establishes rules for disposing of hazardous waste, sets standards for air and water quality, and monitors businesses for compliance.

Environmental Protection Agency (EPA)

Enforces laws to protect the environment, establishes rules for disposing of hazardous waste, sets standards for air and water quality, and monitors businesses for compliance.

Food and Drug Administration (FDA)

Protects consumers and the public from unsafe and impure foods, drugs, cosmetics, and medical devices.

Generally Recognized as Safe (GRAS)

A designation indicating that a food substance has been adequately proven to be safe under the conditions of intended use.

United States Department of Agriculture (USDA)

Inspects food products and facilities, sets safety and sanitation standards, grades for quality, and educates about human nutrition, specifically relating to meat, fish, poultry, and dairy products.

Grading (USDA)

The USDA grades for quality based on nationally uniform federal standards.

Consumer Bill of Rights

Originally outlined by John F. Kennedy in 1962 to protect consumers from unfair practices; now includes eight rights.

Better Business Bureau (BBB)

A nonprofit agency that helps resolve consumer complaints, keeps a file of complaints, educates consumers, and promotes honest advertising.

Consumers Reports Magazine

A nonprofit organization that tests products and conducts research to help consumers make informed purchasing decisions.

Magnuson Moss Warranty Act

States that products are NOT required to have a warranty.

Express Warranty

A warranty that is explicitly written out.

Implied Warranty

A warranty that is not explicitly written out.

Full Warranty

A warranty where everything is covered.

Limited Warranty

A warranty where only specific parts/repairs are covered.

Fitness (Warranty)

Based on seller recommendation.

Merchantability

Product performs as intended.

Extended Warranty

Additional coverage for a product, also known as a service contract, service agreement, or maintenance agreement.

Cooling-off Period

A 3-day period to back out of an agreement.

Small Claims Court

A court designed to handle claims up to a certain amount (e.g., $10,000) quickly and without lawyers.