CHAPTER 23

Consumer Rights and Responsibilities

The Consumer Bill of Rights

Outline by President John F. Kennedy in 1962 The Right to Be Informed The Right to Choose The Right to Safety The Right to Be Heard The Right to Have Problems Corrected The Right to Consumer Education The Right to Service

Consumer Movement

Movement to pass laws protecting consumers from unfair and unsafe business practices.

The Right to Be Informed

You have a right to accurate information about products.

Businesses are required to give you certain information about products Ingredients in food Interest rates for loans

The Right to Be Informed

Food labels give us useful information about the food we eat

Energy Guides inform us of the estimated energy consumption and the estimated yearly cost of operating the product

Clothing labels provide information about what the garment is made of, how to care for it, where it is made, and what size it is.

The Right to Choose

Consumers have the right to choose from a variety of goods and services.

Competition gives consumers more choices of goods to buy

Federal government regulates the market to keep it competitive Anti-trust laws: designed to keep

monopolies from forming

The Right to Safety

Consumers have the right to products that are safe to use.

Product Liability – manufacturers

have a legal responsibility to make a safe product.

Can you think of any safety devices or warning labels on the products that you use?

How about…

Warning labels

ATV Label

Cigarette Label        

CD Labels

Warning Labels Video

McDonalds Coffee Lawsuit

In 1994, $2.9 million was awarded to an 81-year old woman who was scalded by McDonald’s coffee.

While removing the lid to add cream and sugar, she spilled it causing third-degree burns to her inner thighs

Judgment was later reduced to $430,000

What changes do you think occurred after the verdict?

As a result…

Batman: The Animated Series Armor Set Halloween costume: PARENT: Please exercise caution—mask and chest

plate are not protective; cape does not enable wearer to fly. Conair Pro Style 1600 hair dryer:

WARNING: Do not use in shower. Never use while sleeping.

Instructions for folding up a portable baby carriage: Step 1: Remove baby.On packaging for a Rowenta iron:

Do not iron clothes on body.

More Funny Warning Labels

The Right to Be Heard

Consumers have the right to complain about products or services

“The customer is always right” Many businesses rely on satisfying their customers

to stay in business

Do you have an example of a time when you complained about a product and the business responded positively?

The Right to Be Heard

Bait and Switch Store advertising an item at a low price to lure

you in Then the product is not available They attempt to sell you a more expensive item

Fraud deliberately misleading the consumer

Vacation ScamsSPAM emails for free gifts

Vacation Scams

The Right to Have Problems Corrected

Many large businesses have customer service departments

Companies want to keep your business and will usually correct any problems that you’ve had

How would your respond if you purchased an item that was defective, and the company did not rectify the situation?

The Right to Consumer Education

Customers have the right to know how the economy works Orientation to Business

Be an informed consumer Read

Consumer Reports Watch the news

CBS News Consumer Alerts Comparison shop

http://www.shopping.com/ Consumer Websites

http://www.fightback.com/ http://www.consumeraffairs.com/

The Right to Service

Consumers have the right to be treated in a respectful and courteous manner

Consumers have the right to expect fast delivery of goods or services

Consumers have the right to be served without discrimination

What could you do if you feel you are not being treated fairly?

Your Responsibilities as a Consumer

We have 7 rights as consumers, but we also have responsibilities as consumers too Responsibility to be informed Responsibility to choose carefully Responsibility to use products safely Responsibility to speak out Responsibility to learn consumer skills

The Responsibility to be Informed

As a consumer, you have the responsibility to be informed and educate yourself

Before making a major purchase, do your homework. Consumer Reports Read Fact Sheets

The Responsibility to Choose Carefully

Make comparisons to find the best product or service at the best price

Find out about the product choices Which product has the best guarantee Which product fits your budget and your needs?

Choose products that don’t hurt the environment Pollution – contamination of air, water, and land Conservation – process of preserving, protecting, and

planning the management of resources. Recycling – collecting products for processing so they can

be used again

The Responsibility to Use Products Safely

Government has passed many laws to make products safe

You have a responsibility to read information about a product and use the product the way it was intended Extreme Home Makeover Video`

Consumers must follow the instructions given by the manufacturer for the safe use of products What is the recommended dosage? How should chemicals be stored?

The Responsibility to Speak OutYou have a responsibility to report unfair,

unsafe, and illegal business practicesBoycott – refusing to buy a good or service

A modern boycott was the blacklisting of the country band The Dixie Chicks after one of the members made a derogatory political comment about President Bush.

Many country music stations in the U.S. refused to play their music as a result.

List of active boycotts http://www.ethicalconsumer.org/boycotts/

boycotts_list.htm

The Responsibility to Seek Remedy

You have a responsibility to seek remedy for a defective product

If you plan to exchange an item or get a refund: it’s your responsibility to bring the item with you It’s your responsibility to bring the receipt and bring any warranties or guarantees that

came with the item.