Chapter 14: Consumer Protection

Alternative dispute resolution (ADR): A method for resolving legal conflicts outside the traditional court system, in which a professional mediator (a third-party neutral) works with the two sides to negotiate a settlement agreeable to both parties.

Behavioral advertising: Advertising that targets particular customers based on their observed online behavior.

Consumer affairs officer: Manages the complex network of consumer relations.

Consumer movement: A social movement that seeks to augment the rights and powers of consumers. (Also known as consumerism.)

Consumer privacy: A consumer's right to be protected from the unwanted collection and use of information about that individual for use in marketing.

Consumer protection laws: Laws that provide consumers with better information, protect consumers from possible hazards, encourage competitive pricing, protect privacy, or permit consumer lawsuits.

Deceptive advertising: An advertisement that makes false or misleading claims about the company's own product or its competitor's product, withholds relevant information, or creates unreasonable expectations; generally illegal in most countries.

Product liability: The legal responsibility of a firm for injuries caused by something it made or sold.

Product quality: Everything an organization does to ensure the quality of its product.

Product recall: Occurs when a company, either voluntarily or under agreement with a government agency, takes back from its distribution channels all items found to be dangerously defective.

Strict liability: A legal doctrine that holds that a manufacturer is responsible (liable) for injuries resulting from the use of its products, whether or not the manufacturer was negligent or breached a warranty.