Chapter 24: Protecting Consumers

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.

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.

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.

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.

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.