Unit BThe Consumer’s Impact on

Business

Section 2.01

The Government’s Role in Consumer Protection

Consumer Rights & Responsibilities

The federal government has created agencies to make sure the rights of consumers are enforced so goods and services purchased in the marketplace are safe and fair.

These agencies were created to protect the following rights and responsibilities of American consumers:

Consumer Rights & Responsibilities

The right to be informed.– Consumers should be given the facts

needed to make informed choices – Consumers should compare brands when

shopping– Consumers should be protected from:

• Unfair or misleading advertising.• Incorrect product labels.• Fraudulent sales practices.

Consumer Rights & Responsibilities

The right to safely choose products and services.– Consumers should have access to a variety

of goods and services at competitive prices.

The right to use products safely.– Consumers should be protected against

products the are hazardous to life or health.

Consumer Rights & Responsibilities

The right to speak out and be heard.– Consumers should be assured their

interests will be considered in the making of laws that might affect them.

The right to seek remedy and have problems corrected.– Consumers should be entitled to quick

and fair remedies for consumer problems.

Consumer Rights & Responsibilities

The right for consumer education– Consumers should be taught to use their

rights and responsibilities to the greatest satisfaction for the money.

Federal Consumer Protection Agencies

Consumer Information Center

This agency provides information on government publications on many topics that concern consumers:– 66 Ways to save money– Heating &cooling your home– Fraudulent web sites– Current scams

http://www.pueblo.gsa.gov/links.htm

Consumer Product Safety Commission

This agency promotes safety from unreasonable risk of injury from products, sets safety requirements, tests products, conducts research, and provides consumer safety education programs.

http://www.cpsc.gov/

Consumer Product Safety Commission

The CPSC is charged with protecting the public from unreasonable risks for more than 15,000 products: toys, cribs, power tools, lighters, and household chemicals.

This agency is responsible for a 30% decline in consumer injuries or death over the last 30 years.

Federal Trade Commission (FTC) The FTC works to ensure the nations

financial markets are vigorous, efficient, and free of restrictions that harm customers.

One of the primary areas of focus is enforcing laws and regulations concerning unfair advertising.

Federal Trade Commission (FTC)

Some additional responsibilities of the FTC:– Enforce federal antitrust laws.– Enforce consumer protection laws that

prevent fraud, deception, and unfair business practices.

– Conducts economic research.

www.ftc.gov

Department of Transportation (DOT)

Established in 1966 to:– Serve the United States by ensuring a

fast, safe, efficient, accessible and convenient transportation system that meets our vital national interests and enhances the quality of life of the American people, today and into the future

www.dot.gov

Department of Transportation

The DOT supervises the following:– Federal Aviation Administration

– Federal Highway Administration

– Federal Railroad Administration

– Federal Transit Administration

– Maritime Administration

– National Highway Traffic Administration

The USDA assists the following:– America’s farmers and ranchers– USDA leads the Federal anti-hunger effort with

the Food Stamp, School Lunch, School Breakfast, and the WIC Programs.

• USDA is the steward of our nation's 192 million acres of national forests and rangelands

– USDA brings housing, modern communications, and safe drinking water to rural America

www.usda.gov

USDA

• USDA is the country's largest conservation agency, encouraging voluntary efforts to protect soil, water, and wildlife on the 70 percent of America's lands that are in private hands.

• USDA is responsible for the safety of meat, poultry, and egg products.

• USDA is a research leader in everything from human nutrition to new crop technologies that allow us to grow more food and fiber using less water and pesticides.

The FDA sets and maintains purity & safety standards for foods, drugs,and cosmetics.– Researches contents of new health and

drug products.– Inspects food and health aid manufacturing

plants.– Ensures accurate product labeling.– Removes unsafe products from the market.

www.fda.gov

Food and Drug Administration

The FDA regulates the following:– Safety of the nations blood supply

– Cosmetics

– Drugs• Product approvals• Over the counter (OTC) prescription drug

labeling• Drug manufacturing standards

Food and Drug Administration– Foods

• Labeling• Safety of all food products, except meat and

poultry. Who does this?• Bottled water

– Medical devices– Veterinary products

• Livestock feeds• Pet foods, veterinary drugs, veterinary devices

United States Postal Service

The USPS performs the following:– Delivers mail to over 142 million homes,

businesses and post office boxes.

– Adds 1.8 million new addresses annually.

– Serves over 7 million customers daily at 38,000 post offices.

– Delivers over 206 billion pieces over mail annually.

United States Postal Service

The USPS regulates by enforcing laws against fraud by mail:

• Receives complaints.• Helps recover money.• Provides information on common mail fraud

schemes.

www.usps.com

Department of Justice The mission of the Department of Justice is

to:– Enforce the law and defend the interests of the

United States– Ensure public safety– Control crime– Punish those guilty of unlawful behavior– Enforce immigration laws – Ensure fair justice for all Americans

Department of Justice

The following are departments are supervised by the DOJ. – Attorney General

– Office on Violence Against Women

– Civil Rights Division

– Federal Bureau of Investigation

– Criminal Division

Department of Justice

– Drug Enforcement Administration

– Federal Bureau of Prisons

– United States Marshall Service

– Bureau of Alcohol, Tobacco, Firearms, and Explosives

– United States Attorneys

www.usdoj.gov

Occupational Safety & Health Administration (OSHA)

OSHA's mission is to assure the safety and health of America's workers by setting and enforcing standards; providing training, outreach, and education; establishing partnerships; and encouraging continual improvement in workplace safety and health.

www.osha.gov

The EPA was established by the White House and congress in July of 1970.

The EPA was created in response for the public’s demand for cleaner water, air, and land.

The EPA’s mission is to protect human health and the environment.

www.epa.gov

Securities Exchange Commission

The primary mission of the SEC is to protect investors and maintain the integrity of the securities, stocks and bonds, markets.– Promoting disclosure of information.– Enforcing securities laws.– Protecting investors in the marketplace.– Creating a “level playing field.”

Securities Exchange Commission

The SEC oversees:– Stock exchanges.

– Broker / Dealers.

– Investment advisors.

– Mutual Funds.

– Public Utility Holding Companies.

www.sec.gov

State Consumer Protection Agencies

Public Utilities Commission

The purpose of regulation of public utilities is to ensure that adequate service may be provided at reasonable rates.

In fixing rates, the commission must be fair to public utilities and their customers.

The commission regulates more than 1,791 utility companies in North Carolina.

http://www.ncuc.commerce.state.nc.us/

Public Utilities Commission

The Public Utility Commission regulates:– Electric companies

– Telephone companies

– Natural gas companies

– Motor freight carriers

– Motor passenger carriers

– Water and sewer companies

– Ferryboat operators

Licenses All businesses operating in the state of

North Carolina must possess a business license.

The North Carolina Department of Commerce administers the program.

The purpose is to ensure all businesses are registered for taxation purposes.

http://www.nccommerce.com/servicenter/blio/faq/

Private Consumer Protection Organizations

The Consumer Report Mission:– Test

• We buy all the products we use as test samples.

• We receive no special treatment

• We accept no free samples.

• More than 100 testing experts work in seven major technical departments

• We also survey our millions of readers to bring you information on numerous products.

Consumer Reports– Inform

• Consumer Reports magazine has about 4 million subscribers.

• We reach millions more consumers through ConsumerReports.org,

– Protect• Our research and testing uncovered dangers that

led to the Flammable Fabrics Act, the Child Protection and Toy Safety Act, and many product recalls, government standards, and regulations.

www.consumerreports.org

The BBB exists to persuade businesses to remedy problems, or fulfill promises, for a product or service in question.

The BBB gets involved with consumer problems when a significant number of complaints are made about a product or service.

http://www.bbb.org/

Better Business Bureau

The BBB's Core Services include: – Business Reliability Reports

– Dispute Resolution

– Truth-in-Advertising

– Consumer and Business Education

– Charity Review

Conclusion

Should consumers use the rights and responsibilities provided by the government?

Do we need consumer protection agencies in our country?

What might happen without consumer protection agencies?

Vocabulary Review Consumer Protection

Agencies Consumer Information

Center Consumer Product Safety

Commission FTC DOT USDA Consumer Reports

FDA USPS DOJ OSHA EPA SEC Public Utilities

Commission Licenses Better Business

Bureau