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5.5 Consumer Protection Objective: Demonstrate how to be a responsible consumer in the 21st century

+Warm – Up:

What is a Consumer?How do we protect consumers?

+I. Consumer Protection & Rights A. Consumer: someone who buys a product

or service B. Consumer Protection: movement backed

up by laws and organizations designed to ensure the rights of a consumer

+C. Rights of the Consumer You have a right to…1. Safety: protection from

goods/ services that are hazardous to health

2. Be Informed: protection from misleading information, advertising or labeling

+3. Choose: providing a

selection of goods/services at fair prices

4. Be Heard: Provides you the opportunity to be a voice in the creation & development of goods/services

5. Redress: Request money or other benefits as compensation for a company’s mistake

+II. Consumer Protection Agencies A. There are many federal agencies that help consumers

file complaints against businesses, be smarter shoppers and understand credit

B. Better Business Bureau (BBB) – use this agency to learn about a business and how they treat consumers

1. Sets standards for ethical business behaviors 2. Helps consumers identify trustworthy businesses and

those that aren’t 3. Evaluates advertisements to ensure we can trust what

companies say

+ C. Federal Trade commission

(FTC) –designed to protect consumers and promote competition

1. Organizes National Do Not Call List –registering your name to be removed from telemarketers call lists

2. The Fair Credit Reporting Act – provides that you must be given with a copy of you credit report if requested

3. Prevents anti-business practices like monopolies (when a business has complete control of a good/service)

+ D. Securities and Exchange Commission (SEC) –

protects investors who are purchasing stocks, bonds and other financial assets

1. requires companies to provide consumer with reports of how the co. is doing

2. Maintains a database EDGAR (Electronic Data Gathering, Analysis and Retrieval system)that allows investors to see the information the SEC collects

+III. How to Protect Yourself

A. Register on Do Not Call ListB. Read the Fine Print of any offer/deal/ad

C. Find Trusted Companies through the BBB and other sources

+D. For more information check out…

1. North American Securities Administrative Association – protects investors in the US, Canada and Mexico

2. FBI Common Fraud Schemes – provides consumers with a list of fraudulent businesses practices

3. Internet Crime Complaint Center – where consumers submit complaints regarding internet scams

+Socratic Seminar - Consumer Credit Protection

You will be using the information from the articles on Consumer Credit Protection and Student Loans that you read over the weekend

You and your classmates will be having an open discussion about your thoughts on these two readings and what you learned

To keep your points you must contribute to the discussion in a professional manner. This means: You must have your printed documents. You must speak. You must wait to be called on. You must respect your classmates opinions.

I will keep track of who speaks, prompt you with points for discussion and call on students to speak