11

Consumer Rights & Consumer Rights & ResponsibilitiesResponsibilities

Chapter 34Chapter 34

22

Consumer RightsConsumer Rights6 Basic consumer rights:6 Basic consumer rights:1. Right to Safety1. Right to Safety Not face undo riskNot face undo risk

2. Right to be informed2. Right to be informed Given facts about goods and servicesGiven facts about goods and services Protected from false and misleading Protected from false and misleading

advertisingadvertising Truth-in-Lending ActTruth-in-Lending Act

Requires lenders state what is charged for creditRequires lenders state what is charged for credit

33

3. Right to Choose3. Right to Choose Federal and state laws forbid businesses from Federal and state laws forbid businesses from

taking actions that limit competitiontaking actions that limit competition

4. Right to Redress4. Right to Redress Right to have a wrong correctedRight to have a wrong corrected Receive refunds/replacements for products Receive refunds/replacements for products

that don’t workthat don’t work Can take legal action against the businessCan take legal action against the business

44

5. Right to Consumer Education5. Right to Consumer Education Right to learn about consumer issuesRight to learn about consumer issues Many states require schools to teach basic Many states require schools to teach basic

consumer skillsconsumer skills

6. Right to be Heard6. Right to be Heard Speak out when not satisfiedSpeak out when not satisfied Can campaign or lobby to shape laws and Can campaign or lobby to shape laws and

regulationsregulations

55

Handling ProblemsHandling ProblemsMaking ComplaintsMaking Complaints

1. Decide who to contact1. Decide who to contact Original salespersonOriginal salesperson Next managerNext manager Next customer service personnelNext customer service personnel

66

4 Rules4 Rules

1. Act as soon as you realize the problem1. Act as soon as you realize the problem Quick action lends credibilityQuick action lends credibility By waiting you risk that it will be sold out, back By waiting you risk that it will be sold out, back

ordered or discontinuedordered or discontinued

2. Have a specific goal in mind2. Have a specific goal in mind Replaced or repairedReplaced or repaired Want a refund or credit towards other Want a refund or credit towards other

purchasepurchase

77

3. When you buy, always keep the sales 3. When you buy, always keep the sales receipt and warrantyreceipt and warranty May need it if problem arisesMay need it if problem arises

4. keep the product’s original packaging 4. keep the product’s original packaging at least as long as the warranty periodat least as long as the warranty period Might need it for shippingMight need it for shipping

88

ComplainingComplainingIn PersonIn Person May explain problem more than onceMay explain problem more than once Be calm and patientBe calm and patient If not satisfied, be prepared to leave storeIf not satisfied, be prepared to leave store

By PhoneBy Phone May be more effective to phoneMay be more effective to phone When, where, and how you purchased itemWhen, where, and how you purchased item Standard and Poor’s Register of corporations, Standard and Poor’s Register of corporations,

Directors, and Executives (help find business)Directors, and Executives (help find business)

99

By LetterBy Letter Find company’s addressFind company’s address Include your name, address, etcInclude your name, address, etc What the problem isWhat the problem is How you want it fixedHow you want it fixed Keep an original copy for youKeep an original copy for you Polite and reasonable more likely to get Polite and reasonable more likely to get

resultsresults

1010

Taking Further ActionTaking Further Action

Local Business GroupsLocal Business Groups Local Chamber of commerceLocal Chamber of commerce

Member organization that represents and Member organization that represents and serves businesses in a town or cityserves businesses in a town or city

Better Business Bureau (BBB)Better Business Bureau (BBB)Helps resolve consumer complaintsHelps resolve consumer complaintsAn organization of businesses that promise to An organization of businesses that promise to follow fair business practicesfollow fair business practices

1111

National Business GroupsNational Business Groups

1.1. Consumer action panelsConsumer action panelsGroups formed by industries to handle Groups formed by industries to handle consumer complaints (CAP)consumer complaints (CAP)

1212

Government AgenciesGovernment Agencies

National levelNational levelConsumer Product Safety CommissionConsumer Product Safety Commission

State levelState levelAttorney general’s officeAttorney general’s office

1313

Good Source of InformationGood Source of Information

Consumer Information CenterConsumer Information CenterPueblo, Co 81009Pueblo, Co 81009www.pueblo.gsa.gov/www.pueblo.gsa.gov/

1-888-878-32561-888-878-3256

1414

Join Other ConsumersJoin Other Consumers

Band together to see redressBand together to see redressBusinesses recognize the power of word Businesses recognize the power of word of mouthof mouth

Letter writing campaignsLetter writing campaignsBoycott – technique in which consumers Boycott – technique in which consumers organize to refuse to buy a company’s organize to refuse to buy a company’s productproduct

1515

Legal ActionLegal Action

Hiring a lawyerHiring a lawyer ExpensiveExpensive

Small Claims CourtSmall Claims Court Proceedings in which consumers present their Proceedings in which consumers present their

own claims and a judge decides the outcomeown claims and a judge decides the outcome

1616

Until this century, few laws protected Until this century, few laws protected consumers from irresponsible and greedy consumers from irresponsible and greedy sellerssellersLast 30 years laws and government Last 30 years laws and government agencies help protect consumer rightsagencies help protect consumer rights

1717

Consumer ResponsibilitiesConsumer Responsibilities

Teen buying power impressiveTeen buying power impressive12 to 19 years of age spend $60 billion 12 to 19 years of age spend $60 billion

Big responsibilityBig responsibility

1818

Show ConsiderationShow ConsiderationShow ConsiderationShow ConsiderationNot opening up products – you might find Not opening up products – you might find yours missing somethingyours missing something

Vandalism- Vandalism- deliberately destroying or deliberately destroying or damaging property of othersdamaging property of others Raises costs to cover lossesRaises costs to cover losses

1919

Act HonestlyAct HonestlyReturn policyReturn policy

Rules for returning or exchanging Rules for returning or exchanging merchandisemerchandise

Purchase “as is” and try to return itPurchase “as is” and try to return it

ShopliftingShoplifting Stealing items that are displayed for sale in a Stealing items that are displayed for sale in a

storestore Shoplifters cost $30 billion a yearShoplifters cost $30 billion a year Raise costs to recover lossesRaise costs to recover losses

2020

Using Products SafelyUsing Products Safely

Responsible consumers follow Responsible consumers follow manufacturers instructionmanufacturers instructionStay informed about safety issuesStay informed about safety issuesRecalled –returned to the maker to be Recalled –returned to the maker to be fixed or destroyedfixed or destroyed

2121

Real Life ApplicationReal Life Application

Edie ordered a cake from a woman who Edie ordered a cake from a woman who ran a small bakery from her home. When ran a small bakery from her home. When she picked up the cake, she thought it she picked up the cake, she thought it wasn’t nearly as attractive as the picture in wasn’t nearly as attractive as the picture in the brochure she had ordered from. When the brochure she had ordered from. When she served it, she and several guest found she served it, she and several guest found it dry and stale.it dry and stale.

2222

1. What recourse does Edie have?1. What recourse does Edie have?2. Is her case weakened because she 2. Is her case weakened because she cannot return the product?cannot return the product?3. Because her complaints were based on 3. Because her complaints were based on opinion?opinion?4. Because she had no warranty?4. Because she had no warranty?

2323

Consumer AgenciesConsumer Agencies

National Bureau of Standards, a division of National Bureau of Standards, a division of the Department of commerce, maintains the Department of commerce, maintains the standards of weights, measures, and the standards of weights, measures, and time. time. Fixed standards allow people to buy Fixed standards allow people to buy replacement parts for countless items and replacement parts for countless items and to purchase food in specific amounts.to purchase food in specific amounts.

2424

International standards are being International standards are being developed so goods and services can be developed so goods and services can be interchanged between countries. interchanged between countries. Many goods manufactured overseas are Many goods manufactured overseas are made according to U.S. standards in made according to U.S. standards in deference to the large American market.deference to the large American market.

2525

Other AgenciesOther Agencies

Consumer SentinelConsumer Sentinelwww.consumer.gov/sentinel/index.htmlwww.consumer.gov/sentinel/index.htmlInternet Fraud Complaint CenterInternet Fraud Complaint Centerwww.ic3.gov/www.ic3.gov/National Fraud Information CenterNational Fraud Information Centerwww.fraud.org/www.fraud.org/

2626

Decide in advance exactly what you want and Decide in advance exactly what you want and what you can afford.what you can afford. Don’t buy on impulse or under pressure. This Don’t buy on impulse or under pressure. This includes donating to charity.includes donating to charity. Do your Do your research. research. Ask family, friends and others you trust for Ask family, friends and others you trust for advice based on their experience.advice based on their experience. Gather Gather information about both the seller and the item or information about both the seller and the item or service you are purchasing. service you are purchasing.

2727

Review product test results and other Review product test results and other information from consumer experts.information from consumer experts. See See Consumer Information Sources. Consumer Information Sources. Get advice and price quotes from several Get advice and price quotes from several sellers.sellers. Make sure that the seller has all appropriate Make sure that the seller has all appropriate licenses.licenses. Doctors, lawyers, home improvement Doctors, lawyers, home improvement contractors and many other service providers contractors and many other service providers must register with a state or local licensing must register with a state or local licensing agency. agency.

2828

Check out a company’s complaint Check out a company’s complaint recordrecord with your local consumer affairs with your local consumer affairs office and the Better Business Bureau. office and the Better Business Bureau. Get a written copy of guarantees and Get a written copy of guarantees and warrantieswarranties. Compare their features. . Compare their features. Get the seller’s refund, return and Get the seller’s refund, return and cancellation policies.cancellation policies.

2929

Ask whom to contact if you have a question Ask whom to contact if you have a question or problem.or problem. Read and understand any contract or legal Read and understand any contract or legal document you are asked to sign.document you are asked to sign. Make sure Make sure there are no blank spaces. Insist that any extras there are no blank spaces. Insist that any extras you are promised orally be put in writing. you are promised orally be put in writing. Consider paying by credit card.Consider paying by credit card. If you have a If you have a problem, you may not have to pay the charge problem, you may not have to pay the charge made on your credit card. made on your credit card.

3030

ActivityActivityA description of the purchase, and the name and A description of the purchase, and the name and serial number of the product, serial number of the product, A concise summary of the problem, A concise summary of the problem, The specific action you would like the company The specific action you would like the company to take, to take, A timeline in which you would like to see the A timeline in which you would like to see the problem resolved before taking further action, problem resolved before taking further action, Your contact information, and Your contact information, and Copies of pertinent documents such as receipts, Copies of pertinent documents such as receipts, copies of warranties and any communication copies of warranties and any communication received to date. received to date.

3131

ActivityActivity

Watch Judge JudyWatch Judge Judy

3232

ActivityActivity

Interview a merchantInterview a merchantWhat do they dislike and like about some What do they dislike and like about some consumers?consumers?

3333

ActivityActivity

Write a letter to praise a local merchant.Write a letter to praise a local merchant.