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Chapter 24: Protecting Consumers

Consumer Organizations and Agencies

Finding Solutions to Consumer Problems

  • At some point, you may have trouble with a product or service.

  • There are things you can do to resolve the matter yourself.

    • When faced with a purchasing problem, review your receipts and warranties.

    • Consumer organizations may be able to help.

    • If you do not get the results you want, you might decide to file a claim in small claims court.

Nongovernmental Consumer Organizations

  • There are many organizations that work on behalf of consumers.

    • Groups and individuals who work to protect, inform, and defend consumers are called consumer advocates.

  • The Consumer Federation of America (CFA) works to inform the public and government about consumer issues.

  • The National Consumers League is the nation’s oldest non- profit consumer group with membership open to anyone.

  • Consumers Union is a nonprofit organization that publishes the magazine Consumer Reports

  • Some industries have consumer assistance panels.

  • The Major Appliance Consumer Action Program (MACAP) helps consumers solve problems with large appliances, such as washers, stoves, and freezers.

  • Internet sites, radio, TV stations, and newspapers advocate for consumers.

    • They often have a consumer reporter who reports on issues that are important to consumers, such as product safety, testing, and shopping.

Government Consumer Organizations

  • In the United States, each state has a consumer affairs division.

  • Many state and federal agencies have been set up to protect consumers.

  • The Federal Trade Commission (FTC) enforces federal antitrust and consumer protection laws by investigating complaints against companies

  • The U.S. Department of Agriculture (USDA) inspects foods and grades them.

    • Grade labels indicate the level of quality of foods.

  • The Food and Drug Administration (FDA) regulates the labeling and safety of food, drugs, cosmetics, dietary supplements, and medical devices sold in the United States.

  • The National Highway Traffic Safety Administration is part of the U.S. Department of Transportation.

  • A recall is an order to take back and repair or replace a product that has defective parts

  • The U.S. Consumer Product Safety Commission is a federal government agency that oversees the safety of products such as toys, cribs, power tools, electronics, and furniture.

  • State public utilities commissions regulate the rates charged by electric, gas, and water companies.

  • A legal monopoly is a company that is allowed to operate without competition.

  • State insurance commissions are the state government bodies responsible for regulating the activities of insurers and health plans.

  • State licensing agencies issue licenses, or legal permits to conduct business.

Consumer Protection Laws

Laws that Protect Consumers

  • The U.S. government allows businesses to compete in the marketplace with relative freedom.

    • However, many laws have been enacted to regulate and restrict business practices.

  • Manufacturers of products for the public must become familiar with consumer protection laws.

  • Price discrimination is the act of charging more than one price for the same product or service in different markets or to different customers.

    • The Clayton Act of 1914 and the Robinson- Patman Act of 1936 are aimed at prohibiting price discrimination.

  • The Fair Packaging and Labeling Act requires that manufacturers’ labels truthfully list all ingredients and raw materials used in production.

  • The Uniform Commercial Code (UCC) is a group of laws that regulate commercial business transactions.

    • The UCC protects the economic interests of buyers and sellers in contracts.

    • It also regulates sales warranties.

  • The Consumer Credit Protection Act requires those who give credit to reveal all the terms and conditions of their credit agreements.

  • The Federal Trade Commission Act protects consumers from false and misleading advertising with truth-in-advertising laws.

How Businesses Protect Consumers

  • The business community protects consumers by providing information.

    • Labels, brochures, manuals, and online details are some of the ways that businesses educate consumers about their products and services.

  • The Better Business Bureau (BBB) is a nonprofit organization that collects information on local businesses and handles complaints.

  • Many businesses have a customer service department.

  • A customer service representative can answer questions or help resolve problems

  • Advertising can be a good source of consumer information.

  • Some commercial magazines are good sources of consumer information.

Chapter 24: Protecting Consumers

Consumer Organizations and Agencies

Finding Solutions to Consumer Problems

  • At some point, you may have trouble with a product or service.

  • There are things you can do to resolve the matter yourself.

    • When faced with a purchasing problem, review your receipts and warranties.

    • Consumer organizations may be able to help.

    • If you do not get the results you want, you might decide to file a claim in small claims court.

Nongovernmental Consumer Organizations

  • There are many organizations that work on behalf of consumers.

    • Groups and individuals who work to protect, inform, and defend consumers are called consumer advocates.

  • The Consumer Federation of America (CFA) works to inform the public and government about consumer issues.

  • The National Consumers League is the nation’s oldest non- profit consumer group with membership open to anyone.

  • Consumers Union is a nonprofit organization that publishes the magazine Consumer Reports

  • Some industries have consumer assistance panels.

  • The Major Appliance Consumer Action Program (MACAP) helps consumers solve problems with large appliances, such as washers, stoves, and freezers.

  • Internet sites, radio, TV stations, and newspapers advocate for consumers.

    • They often have a consumer reporter who reports on issues that are important to consumers, such as product safety, testing, and shopping.

Government Consumer Organizations

  • In the United States, each state has a consumer affairs division.

  • Many state and federal agencies have been set up to protect consumers.

  • The Federal Trade Commission (FTC) enforces federal antitrust and consumer protection laws by investigating complaints against companies

  • The U.S. Department of Agriculture (USDA) inspects foods and grades them.

    • Grade labels indicate the level of quality of foods.

  • The Food and Drug Administration (FDA) regulates the labeling and safety of food, drugs, cosmetics, dietary supplements, and medical devices sold in the United States.

  • The National Highway Traffic Safety Administration is part of the U.S. Department of Transportation.

  • A recall is an order to take back and repair or replace a product that has defective parts

  • The U.S. Consumer Product Safety Commission is a federal government agency that oversees the safety of products such as toys, cribs, power tools, electronics, and furniture.

  • State public utilities commissions regulate the rates charged by electric, gas, and water companies.

  • A legal monopoly is a company that is allowed to operate without competition.

  • State insurance commissions are the state government bodies responsible for regulating the activities of insurers and health plans.

  • State licensing agencies issue licenses, or legal permits to conduct business.

Consumer Protection Laws

Laws that Protect Consumers

  • The U.S. government allows businesses to compete in the marketplace with relative freedom.

    • However, many laws have been enacted to regulate and restrict business practices.

  • Manufacturers of products for the public must become familiar with consumer protection laws.

  • Price discrimination is the act of charging more than one price for the same product or service in different markets or to different customers.

    • The Clayton Act of 1914 and the Robinson- Patman Act of 1936 are aimed at prohibiting price discrimination.

  • The Fair Packaging and Labeling Act requires that manufacturers’ labels truthfully list all ingredients and raw materials used in production.

  • The Uniform Commercial Code (UCC) is a group of laws that regulate commercial business transactions.

    • The UCC protects the economic interests of buyers and sellers in contracts.

    • It also regulates sales warranties.

  • The Consumer Credit Protection Act requires those who give credit to reveal all the terms and conditions of their credit agreements.

  • The Federal Trade Commission Act protects consumers from false and misleading advertising with truth-in-advertising laws.

How Businesses Protect Consumers

  • The business community protects consumers by providing information.

    • Labels, brochures, manuals, and online details are some of the ways that businesses educate consumers about their products and services.

  • The Better Business Bureau (BBB) is a nonprofit organization that collects information on local businesses and handles complaints.

  • Many businesses have a customer service department.

  • A customer service representative can answer questions or help resolve problems

  • Advertising can be a good source of consumer information.

  • Some commercial magazines are good sources of consumer information.

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