Objective 5.00 Understand Consumer Rights, Responsibilities and Information.

1. Objective 5.00 Understand Consumer Rights, Responsibilities and Information. 5.01 Students will be able to understand the rights and responsibilities of consumers.

2. Essential Questions What adjective describes these bananas? • What basic consumer rights are protected by law? • What does it mean to be a responsible consumer?

3. GeneralTerms • Goods • Service • Retailer • Marketplace • Merchandise • Consumable Products • Durable Products • Warranty

4. Exercising Consumer Rights and Responsibilities • Government agencies---federal and state consumer agencies • Merchant services • Consumer advocate groups • Consumer affairs • Consumer action panel • Sources of consumer resources and protection

5. Government Agency • Federal Agencies: • Federal Trade Commission (FTC) – Ensure fair transactions, product labels, privacy • Department of Labor (DOL) – Ensure fair and reasonable working conditions • Food and Drug Administration (FDA) – Protect against unsafe food, drugs, cosmetics • Consumer Product Safety Commission (CPSC) – Set safety standards for products • Department of Housing and Urban Development (HUD) – Supervises programs related to housing needs and fair housing opportunities • United States Department of Agriculture (USDA) – Inspects and sets standards for meat, poultry, and canned foods • State Agencies • Attorney General’s Office – takes legal action on behalf of the state and its citizens • NC Cooperative Extension – provides unbiased research-based consumer education and information

6. Merchant Services • Warranty and return policies – provide guidelines for dissatisfied customers • Consumer affairs departments – deal with consumer concerns and complaints

7. Consumer Advocacy Groups • Justice Department - Enforces the laws to maintain free trade • Better Business Bureau (BBB) – provide reliability reports on businesses, accept consumer complaints • News media – provide consumer investigative reports • National consumer organizations – provide consumer advocacy, educational materials, product/service information • Consumer Reports - Consumer Reportsis published by Consumer’s Union

8. Exercising Consumer Rights and Responsibilities • Be their own advocates • Look out for their own interests as a consumer with rights • Be aware of the steps to take to resolve problems with products/services • Be aware of organizations that assist consumers in resolving complaints • Know when to seek help • To protect their rights in the marketplace, consumers should:

9. Better Business Bureau (BBB) • A private, non-government agency available at local and state levels • Logs complaints from consumers • Passes complaint information to businesses that are members, frequently resolving issue • Makes complaints available for public viewing • Tries to steer consumers to reliable businesses that conduct business ethically http://nwnc.bbb.org/

10. Rights of Consumers A basic set of protections, agreed upon by society and written into law, apply to purchases of merchandise and services in the United States. These rights of consumers include: • Right to be safe • Right to be informed • Right to choose products and services • Right to be heard • Right to redress • Right to consumer education • Right to service • Right to a healthy environment

11. Responsibilities of Consumers Types of activities a consumer is expected to perform as part of a purchase decision. Each consumer responsibility parallels a consumer right. • To use products safely • To find and use information • To choose purchases carefully • To speak up • To seek redress • To learn • To reward good service • To promote a healthy & caring relationship with the environment

12. Consumer IssuesObjective 05.01Students will understand how to settle a consumer complaint.

13. What if I have a complaint? • First, contact company customer service department to give notice of the problem and allow time to resolve conflict with involved parties. • Frequently, companies will resolve the problem with a consumer at this stage by replacement, repair, or restitution for the item. • The company desires to keep the customer satisfied to ensure future business and positive goodwill. • If complaint is unresolved, proceed to next contact.

14. Steps to Settle a Consumer Problem • Identify the problem • Decide on desired solution • Gather up important documentation • Take your complaint back to the store • Direct to the Manufactor • Take your complaint further, if necessary

15. 1. Identify the problem. • Is the product broken? • Is the product something other than what you thought it was?

16. 2. Decide on a solution. • Do you want your money back(refund)? • Do you want a repair performed? • Do you want a replacement product?

17. 3.  Gather up important documentation. • Find your sales slip or credit-card receipt. • If you paid by check, bring your cancelled check. • If you had the item fixed, bring the repair bill. • Find your service agreement or contract. • Bring your warranty.

18. 4. Take your complaint back to the store. • Go to customer service department or see a salesperson. • State the problem. • State how you would like the problem resolved. • If necessary, see the store manager and repeat your complaint.

19. 5. Direct to Manufacturer Mail a letter • If you do not get resolution through customer service, then go direct to manufacturer • Call toll free # • Mail letter • Email your complaint • Contact local “Action 9” Reporter • Media attention often gets results Call to complain Email a Complaint

20. Exercising Consumer Rights and Responsibilities • Greeting/salutation • Opening • Body • Closure State the problem clearly and be brief as possible! • Components of a successful complaint letter Refer to Sample Letter

21. 6. Take your complaint further, if necessary. • Get in touch with the BBB or other private consumer organizations. • Contact applicable federal regulatory agencies for assistance. • Contact the state or federal attorney general’s office. • File a claim in small claims court. • Contact a private attorney to file individual litigation or be part of a class action lawsuit.

22. Better Business Bureau (BBB) • A private, non-government agency available at local and state levels • Logs complaints from consumers • Passes complaint information to businesses that are members, frequently resolving issue • Makes complaints available for public viewing • Tries to steer consumers to reliable businesses that conduct business ethically http://nwnc.bbb.org/

23. Government Regulatory Agencies Contact the government regulatory agency related to your complaint. Examples: • Consumer Product Safety Commission • Federal Communication Commission • Federal Trade Commission • US Postal Service • State or federal attorney general’s office • chief law enforcement/justice officer • committed to protecting the safety and welfare of all state residents • AG's Office aggressively prosecutes those who break criminal, environmental and consumer protection laws and defends the state against legal actions.

24. Last Resort – Legal Action • Last option, if all else fails to resolve the conflict: • Go to small claims court or • Seek legal counsel to: • File individual litigation or • Join a class action lawsuit