The purpose of this presentation is to help consumers understand the rights & responsibilities of buyers and sellers under consumer protection laws, as well as what factors to consider when making buying decisions.

Be a Wise Consumer

In your Journal

Take notes on the information in Blue

Consumer Protection: Where it all started

Consumer Bill of Rights (State of the Union Address of 1962-President John F. Kennedy)

The right to safety & protection against practices that result in noncompetitive prices for goods and services available

The right to be informed and protected against false and misleading advertising

The right to be heard & guaranteed consumer representation when using government policies and enforcement of consumer protection laws

Fair Credit Reporting Act of 1970 Stipulates how Consumers and Creditors

resolve disputes. Consumers have the right to receive one free

credit report per year (annualcreditreport.com)

Consumers can write a 1 page explanation if information in your credit report is incorrect.

Truth in Lending Act

Creditors must make a complete account of credit costs and terms.

The Equal Credit Opportunity Act Creditors cannot discriminate on the basis of

the following:

Sex

Marital Status

Race

Religion

Age

The Fair Credit Billing Act

If you think there is an error on a bill, you must complain in writing within 60 days after the bill is mailed

Better Business Bureau (BBB)

A nonprofit , business-sponsored agency, dedicated to educating consumers, helping to resolve disputes, and promoting honest business practices (www.bbb.org)

Federal Trade Commission (FTC) A federal agency which protects consumers

against false advertising, illegal sales schemes, and unfair trade practices (www.ftc.gov)

Pyramid scheme

A type of illegal and fraudulent system which requires an endless stream of recruits in which people pay to join and organization in exchange to the right to sell memberships to others.

Bureau of Consumer Protection (A division of the FTC) A federal agency which provides state and

local consumer protection to help answer consumer problems and enforce consumer protection and fraud laws

Consumers Union (Consumer Product-Testing Organizations) A non-profit organization that helps guide consumers in the market-place with testing. Through its monthly magazine, Consumer Reports. Consumer Union gives tests results and product ratings. (www.consumerreports.org) Other consumer magazines and web sites are Consumers’ Research and Changing Times.

Food & Drug Administration (FDA) A federal agency which sets and enforces

safety standards for consumable products such as food, drugs, and cosmetics (www.fda.gov)

Warranty

A company’s promise that its product will meet specific standards over a given time period or replace or refund

Limited Warranty

May require the consumer to pay labor or handling charges

Implied Warranty of Merchantability

The product does what its name implies.

ie: Advertising snow tires, but they aren’t actually good in the snow.

Monopoly

A company that has an unfair advantage over competitors in an area of business

CONSUMER RIGHTS AND RESPONSIBILITIESRIGHT:

To Get Reliable Help

Food and Drug Administration (FDA)

Consumer Product Safety Commission

(CPSC) BBB FTC

RESPONSIBILITY:

To use products safely read information, use

care booklets & products properly

To speak up Complaint letters

Consumer Product Research Project

What Criteria should you consider when making a buying decision?

Things to consider

What features do you want? What products are available in your price

range? Where should you purchase it? What happens if it doesn’t work as indicated?

USE CONSUMERREPORTS.ORG

Username: WarriorsPFin

Password: Edmonds2014

After you have done the Research

Now, collaborate with another student (2-3 in a group) who researched the same product and create a “Best Buy” product flyer.

It should be well designed (Publisher) &Informative for the Consumer – use rubric & be ready to present Friday