Consumer Advocates“Who watches out for the

consumer?”2.05 Understand responsible actions for conducting business.

Who is a Consumer? You are!!!

Who is a consumer advocate? A party who stands up for another party and defends them.

Who is an advocate for you as a consumer? First and foremost…you are!!! Let’s review your rights…and

responsibilities as a consumer.

Consumer Bill of Rights

3

Consumer rights and responsibilities

To be informed-compare, evaluate To choose carefully-shop around-quality, brands To use products safely-read labels, follow instrux To speak out and be heard - letter of complaint To seek remedy and have problems corrected –

repair, reimburse, or replace To consumer education – read, compare, be aware

of illegal practices, use consumer publications To learn consumer skills –conservation,

consumerism

I want to say…

Consumer Bill of Rights

What is the purpose of the consumer bill of rights?

The consumer bill of rights protects consumers from unfair business practices.

5

Consumer Bill of Rights continued

The Right to Be Informed– Consumers have the right to be informed of what

a product is and its functions.

The Right to Safety– Consumers have the right to be protected from

harm while using a product or service.

6

Consumer Bill of Rights continued

The Right to Choose– Consumers have the right to choose what to buy

among a variety of products and services. The Right to Be Heard

– Consumers have the right to talk with businesses about products or services they offer. Consumers may share their comments, complaints, concerns, or questions.

7

Consumer Bill of Rights continued

The Right to a Remedy– Consumers are assured that they can seek legal

remedy when they encounter a problem or defective product.

– What is a guarantee? (A promise that a product meets certain quality.)

– What is the difference between an express and an implied warranty?

8

Consumer Bill of Rights continued

The Right to Consumer Education– Consumers have the right to be informed about

how their purchasing decisions impact them personally and the economy.

The Right to Service– Consumers have the right to receive goods and

services at the promised level by companies.

9

Speaking out - Letter of Complaint

Use positive tone since letter is negative by nature

Three basic paragraphs– What happened– What action do you want receiver to take?

Refund, repair, replace– Positive closing

How will they reach you? Have you attempted to reach favorable response?

How consumers make a difference

Social awareness due to consumer and media exposure– MADD- Mothers Against Drunk Driving– “Erin Brockovich” –polluted ground water

Boycotts- large # of consumers refuse to buy– “Dollars vote” concept– Prices go down – ex: gas prices– Business may fail - ex: clothing made using child labor

Conservation- reuse, recycle, reduce

Common socially responsible practices of businesses

12

Common Socially Responsible Practices of Businesses

Socially responsible practices of businesses include practices that positively impact communities.

Common social responsibilities addressed:− Environmental protection− Workplace diversity− Job safety− Employee wellness

13

Common Socially Responsible Practices of Businesses continued

Companies can contribute to environmental protection by– Implementing actions to conserve natural

resources– Minimizing pollution of air and water resources

What is an example of an organization or action that protects the environment?

14

Environmental Protection Agency

EPA enforces and provides standards for air and water quality.

www.epa.gov

15

Recycling and Conservation

Save the earth. It's the only planet with chocolate. 

Recycling?

Aluminum cans, metals – new aluminum products, structural products

Animal wastes- fertilizers Yard/kitchen wastes- compost for gardens Plastic bottles – carpet, auto parts, fiberfill Newspaper- newsprint, insulations, paperboard Construction waste, tires- pressboard, roads, playground mulch Furnishings & clothing- reused by another person (Goodwill,

Salvation Army, Kidney Foundation, garage sales) Glass- jars, bottles and construction materials

Federal Citizen Information Center

Purpose: to provide American citizens with a catalog of federal publications available

May order info on-line Located in Pueblo, Colorado Phone # 1-888-8PUEBLO http://www.pueblo.gsa.gov/. United States

General Services Administration

Common Socially Responsible Practices of Businesses continued

Workplace diversity exists in a company when the employees represent a variety of groups including women, ethnic groups, physically challenged, and older workers.

What is an example of an organization or action that enforces workplace diversity?

19

WORKFORCE DIVERSITY

The American with Disabilities Act (ADA) enforces regulations to accommodate people with disabilities.

The Age Discrimination in Employment Act protects employees 40 or over from employment decisions based on their age.

The Equal Employment Opportunity Commission (EEOC) protects against workforce discrimination.

Companies providing workforce diversity training to employees.

20

Common Social-responsible Practices of Business continued

Job Safety is ensuring work environments are risk-free of accidents.

What is an example of an organization or action that enforces job safety?

21

What is an example of an organization or action that enforces job safety?

The Occupational Safety and Health Administration (OSHA) gives surety to safe and healthful working conditions for men and women.

A company’s schedule cleaning of bathrooms used by employees three times a day.

Employees who work in a plant that manufactures chemical are required to wear proper clothing to protect from skin irritations

22

Common Socially Responsible Practices of Businesses continued

Employee Wellness programs are offered by employers to maintain a healthy workforce.

What are some examples of employee wellness activities? Stop smoking and weight-loss counseling

23

Evaluation of Social Responsibility

Benefits– Expanded justice for groups of a

society.– Enhanced company image.– Reduced need for government

actions.– Improved quality of life in a

community and around the world.

– Increase awareness of social issues among workers, consumers, and others.

24

Evaluation of Social Responsibility

The costs of providing

social programs must

be realistic to allow a

business to earn a

profit.

25

Ethics

What is the purpose of business ethics?

Business ethics address the conduct of business and employees.

26

Ethics

Guidelines for responsible business conduct

addresses the following questions:– Is the action illegal?– Does the action violate professional or company s

tandards?– Who is affected by the action and how?– http://www.youtube.com/watch?v=CUCSK1QFwts

&feature=related&safety_mode=true&persist_safety_mode=1&safe=active

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Government protection

28

Government Protection continued

How are workers protected in their work environments by the government?

Safe work conditions Minimum standards for buildings,

machines, and chemicals

29

Government Protection continued

A contract is an agreement usually between two parties to exchange goods or services for something of value, usually money.

What are the elements of a contract?

30

6 Elements of a Contract

1. Offer– Proposal by one party to another with intent to create

a legal binding agreement

2. Acceptance– an unqualified willingness to go along with the offer

3. Genuine Agreement – if a valid offer is met by a valid acceptance then a

genuine agreement exists – Can be destroyed by fraud, misrepresentation,

duress, or undue influence 31

4. Capacity– Legal ability to enter into a contract– Ex Minor, mentally ill, drunk, drugs

5. Consideration– Must exchange something of value in order to create

a bond

6. Legality– Must be permitted by law– Courts will not enforce an illegal contract

32

6 Elements of a Contract

Government Protection continued

The government enforces contracts between businesses and individuals by ensuring agreed upon work and the exchange of money or other means are completed.

Examples of when contracts are used:– Buying an automobile– Leasing a building– Buying inventory

33

Oral vs. Written ContractsStatute of Frauds – Requires that some

contracts must be in writing

Contracts to pay debts of others Contracts to pay debts of deceased persons Contracts requiring more than a year to perform Contracts to sell real property Contracts for sale of goods over $500 Prenuptial contract (contemplation of marriage)

34

Express vs. Implied warranty

• An express warranty is a verbal promise by a company about the specific quality performance of a product.

• An implied warranty may not be verbally communicated but is understood to apply anyway.

35

Government Protection continued

Intellectual property protected by the government are:– Copyrights (creative works of artists, authors)

Lifetime + 70 years– Patents (right to make, use or sell the item for 17

years)– Trademarks (registered words, letters or symbols

36

Copyright: Published poem titled Still I Rise by poet Dr. Maya Angelou

Patents: Nike’s production of the footwear Trademarks: Starbucks symbol found on coffee

cups

37

Examples of Intellectual Property

Consumer Product Safety Commission(CPSC)

Established 1972 Federal Agency Purpose:

– Set standards for product safety– Promoting safety from unreasonable risk of

injury from products– Testing products – Initiate recalls of unsafe products from the

marketplace– Conducting research and education

programs ? What are some recent research recalls? Go

to www.cpsc.gov and find out.

Underwriters Laboratories

Tests electrical and other consumer products

Consumer Safety Can you think of places you

have seen the UL label?

Underwriters Laboratories Inc.

Federal Trade Commission(FTC) www.ftc.gov

Founded in 1914 Federal Agency Purpose:

– To protect business and consumer from unfair competition (advertising, fraud, bait and switch, etc.)

– To enforce antitrust laws (monopoly)– To enforce truth in lending laws (credit)– To enforce truth in labeling laws

(consumerism) ? Have you ever been the victim of

unfair competition?

Environmental Protection Agency www.epa.gov

Federal Law– Environmental Protection

Act (1970) Purpose:

– Sets, monitors, and enforces environmental standards

– Researches the effects of pollution on AIR, WATER, LAND

Federal Aviation Administration(FAA) www.faa.gov

1934 – started as Bureau of Air Commerce Expanded in 1938 by Civil Aeronautics Board Became Federal Law in 1948 under Federal

Aviation Act (due to mid-air collisions air traffic controllers became licensed and regulated)

Purpose– To set safety standards– To license pilots– To regulate and monitor aircraft safety– Ensure safe navigation for pilots and aircraft

Enforced through Department of Commerce (one of federal cabinet offices)

? What are some other cabinet offices?

Federal Communications Commission(FCC) www.fcc.gov

Established in 1934 Federal Agency Purpose-

– To license radio and television stations

– To oversee interstate and international telephone and telegraph operations

Example: special telephone taxes- advertised prices change due to federal and local (911) taxes added

Equal Employment Opportunity Commission www.eeoc.gov

Established in 1964 (Civil Rights Act)

Federal Agency Purpose:

– Enforces laws prohibiting job discrimination on the basis of:

– Race, Color, Religion, Gender, National Origin, Age, or Handicap

Federal Reserve Boardwww.federalreserve.gov

Established in 1913 aka “The Fed” Purpose:

– Set monetary and credit policies

– Regulate banks in the Federal Reserve System

All national banks– Control money supply, regulate

interest rates, stabilize economy

? Do you know which branch of the Federal Reserve services the Charlotte area?

Answer-Richmond

Food and Drug Administrationwww.fda.gov

Established 1906, expanded 1931 Federal Agency Purpose-

– Approve and issue licenses for manufacturing and distribution of new products in market

– Setting and maintaining the purity and safety standards for foods, drugs, health aids and cosmetics

– Inspecting product manufacturing facilities– Ensure accurate labeling– Removing unsafe products from the market

? What book that created uproar and led to founding of FDA? The Jungle, by Upton Sinclair

– President Theodore Roosevelt

Interstate Commerce CommissionSurface Transportation Board

Federal Agency established 1887 Became Surface Transportation Board (STB) in 1995 Affiliated with the U.S. Department of Transportation. Jurisdiction over:

– Railroad rates, service issues, mergers, sales – Trucking company and moving van rates – Intercity passenger bus financial, and operational matters

Purpose:– To set rates, routes and rules for interstate trucks, railroads

and businesses– To improve transportation safety through research,

monitoring vehicles and manufacturers for safety issues (emissions, tires, weight, fuel consumption)

? Ever see weigh stations on the interstate? ? What vehicles must be checked for emissions?

National Labor Relations Board(NLRB) www.nlrb.gov

Established 1935 Federal Agency Purpose:

– To protect employees against unfair labor practices

– To investigate unfair labor practices– To regulate labor unions (collective bargaining by

employees with management)

Nuclear Regulatory Commission (NRC) www.nrc.gov

Began in 1946 as Atomic Energy Commission

Expanded in 1974 as NRC Federal Agency Purpose:

– Set standards and regulate the operation of nuclear power plants

– Issue licenses for nuclear power plants Locally- Duke Power (McGuire

Nuclear Plant)

Occupational Safety and Health Administration (OSHA)

www.osha.gov

Founded in 1970 Federal Agency Purpose:

– To promote health and safety in the workplace– To set standards of safety– To investigate violations and assess penalties for

violations

Securities and Exchange Commission(SEC) www.sec.gov

Founded in 1934 Federal Agency Purpose:

– To regulate stock exchanges– To oversee investment companies and

brokers– To protect investors

? What stock exchanges can you name? Amex, NYSE, Nikkei, London,OTC, etc

United States Postal Service (USPS) www.usps.com

Established in 1775 by Ben Franklin Federal Agency Purpose:

– To distribute domestic and international parcels to the public

– To protect consumers against mail fraud and scams

United States Department of Agriculture (USDA) www.usda.gov

Federal Agency Established in 1862 by Abraham Lincoln Purpose:

– Ensures product safety for meat, poultry, dairy and agricultural products-fruits, vegetables

– Research and regulate production & processing of fresh foods

– Stewardship of national forests and rangelands

– Research in human nutrition & new crop technologies

– Lead anti-hunger effort with “STAMP OUT HUNGER IN THE US”- Food stamps, WIC, school lunch programs

Attorney General (AG)

The attorney general– Protects citizens from fraud and criminal acts– Stop actions of individuals or corporations by

injunctions, cease and desist orders– Files criminal actions/lawsuits against violators of

legal statutes Government’s lawyer for the people AG for each state and the federal

government

Office of the Attorney General www.usdoj.gov

Created by Judiciary Act of 1789 Evolved into the head of the Department of Justice

and chief law enforcement officer of the Federal Government

? Who is the NC Attorney General?www.ncdoj.gov

? Who is the US Attorney General?www.usdoj.gov

Public Utilities Commission

Regulates prices and production of natural gas and electricity

a governing body that regulates the rates and services of a public utility. (natural gas, electricity)

may be owned by the consumers that it serves OR may be a stockholder owned utility either publicly

traded on a stock exchange (DUKE POWER)

Licensing

Why require licenses? – Prove knowledge of subject area– Prove identity– Raise revenues ($)

Professional licensures:– Nurses, doctors, medical personnel– Realtors, insurance agents, stock brokers, attorneys– Plumbers, electricians, contractors

Other licenses:– Hunting, drivers, pets, vehicle tags, open retail business,

passports, marriage ? Can you think of others?

Weights and Measures

Standardized measurements– Pounds, Ounces, Miles, Feet, Inches– Grams, Liters, Kilometers, Meters

Food products-prepackaged or fresh – Steak at $10 per pound…I want accurate weight!

Vehicles-fuel pumps, air pumps, pressure, speed Hospitals-input, output, pharmacies, medicines ? Can you think of other places that standardized

weights and measure are important?

National Highway Traffic Safety Administration

Division of Department of Transportation (DOT)

Regulate highway safety standards Research fuel consumption (estimated mpg-

miles per gallon) and ways to save fuel Investigate consumer complaints Research on ways to increase highway

safety

Better Business Bureau (BBB)

Established in 1912 Non-governmental agency with both

state and federal levels Purpose:

– To accept consumer complaints about business dealings

– To keep records available to public– To inform the public about unfair trade

practices and issues– to remedy problems or fulfill promises for

a product or service being questioned

Consumer Reports Magazinewww.consumerreports.org

Established as Consumer’s Union in 1954

Expert, independent, non-profit, non-governmental periodical

Purpose:– To research products for safety and quality– To inform the public about safety and quality

issues for products available to the public– To provide access through the magazine and

online to inform the public

Consumer Reports ®

ConsumerReports.org and Consumer Reports ® published by Consumers Union

Mission:– To work for a fair, just and safe marketplace for all

consumers– To empower all consumers to protect themselves

by making good purchasing decisions

Consumer Federation of America (CFA) www.consumerfed.org

Founded in 1968 Part of the “consumer movement” Purpose:

– To advance the consumer interests through research, education and advocacy

– To scrutinize business practices, products and services – To raise awareness through the news media – To defend the interests of the public at large

Associated with Ralph Nader Headquartered in Washington, DC with state and

local affiliates

Ralph Nader“Father of the Consumer Movement”

Graduate of Princeton Law Became consumer

advocate in 1963 due to concern for public welfare

Wrote book- Unsafe at Any Speed in 1965 about the Chevrolet Corvair that led to the passage of national auto safety standards

Used “crash dummies”

Consumer Movement Issues

“Nader’s Raiders” were instrumental in establishing:– Freedom of Information Act (1966)– OSHA (1970)– EPA (1970)– CPSC (1972)

Publicly and actively addressed environmental and health issues such as : – oil pipeline safety, baby foods, insecticides, mercury poisoning,

pension reform, lead paint, coal mine safety, nuclear radiation, meat processing

Actual Instructions to Consumers:

On a package of peanuts given to US Air passengers.

“ Instructions: Open package, eat nuts.”

Why do you think the package has this warning?

Warning on a Korean kitchen knife:“Keep out of children”What should the warning be?

QUOTE- POLLUTION

"It isn't pollution that's harming the environment. It's the impurities in our air and water that are doing it."

Dan Quayle

Dilbert Ethics

http://www.youtube.com/watch?v=0WTkltRfphM&safety_mode=true&persist_safety_mode=1&safe=active

http://www.youtube.com/watch?feature=fvwp&v=ds1NnDC18_4&NR=1&safety_mode=true&persist_safety_mode=1&safe=active

http://www.youtube.com/watch?v=TBct38Y2f3g&feature=related