Consumer Rights and Responsibilities

1. Caveat Emptor Consumer Rights and Responsibilities PERSONAL CONSUMER RATING Mechanics Sound

2. On question #1, give yourself five points if you selected something to do with your money that is consistent with your goals and values in life. Give yourself two points for each question you answered, as follows: #2—yes #6—yes #10—yes #3—yes #7—no #11—yes #4—yes #8—yes #12—yes #5—yes #9—no #13—yes #14—yes 25-31 points Great! Keep up the good work! 19-25 points Fair. You should begin to make some changes. 14-19 points Not too good. Consider making some big changes Less than 14 Take good notes during this unit, you'll need them! PERSONAL CONSUMER RATING

3. A variety of products Competitive prices No monopolies Right to ChoOSe Responsibility to choose carefully • Practice comparison shopping • Consider the cost • Research variety of places, items, magazines • Refuse to buy

4. How to compare shop for the best buy • Price / Size = price per ounce/sheet/bag… • Popcorn A $3.20 / 6 bags = .53 per bag • Popcorn B $2.00 / 8 bags = .25 per bag • Which is the better buy? Lab Next Time – Info To Know

5. Accurate information to make free choice Protected against fraudulent, deceptive, and misleading information Right to Information Responsibility to seek information and use it to make wise decisions • Use available information • Seek accurate information • Ask questions & understand

6. Government Protection Food & Drug Administration (FDA) Consumer Product Safety Commission (CPSC) Assume product will perform as intended Right to Safety Responsibility to use products safely • Read information • Read & follow instructions • Read & heed to any warning labels

7. Complain BBB (Better Business Bureau) Consumer Protection Agency Right to be heard Responsibility to speak up • Speak up to let likes & dislikes known • Complaint letters • Support reputable businesses

8. Consumers have the right to resolve consumer problems in any case of dissatisfaction Right to Redress Responsibility to Seek Redress • Make suggestions • Seek satisfaction • Speak up when errors occur

9. Consumers may expect convenience, courtesy, and responsiveness to consumer needs and problems Right to Service Responsibility to be Alert • Expect good service • Compliment service where appropriate

10. Without consumer education consumer cannot gain the full benefits of the other seven consumer rights Right to Consumer Education Responsibility to Study • Become more informed about how to get money’s worth • Learn how to assert all the consumer rights

11. SMART By Shel Silverstein My Dad game me one dollar bill ‘cause I’m his smartest son, And I swapped it for 2 shiny quarters ‘cause 2 is more than 1. And then I took the quarters and traded them to Lou for 3 times – I guess he don’t know that 3 is more than 2. Just then, along came old blind Bates and just ‘cause he can’t see, He gave me 4 nickels for my 3 dimes, and 4 is more than 3. And I took the nickels to Hiram Coombs Down at the seed-feed store, and the fool gave me 5 pennies for them, and 5 is more than 4! And then I went and showed my Dad, and he got red in the cheeks and closed his eyes and shook his head – Too proud of me to speak! Watch your vocabulary back!

12. 1. Think about what you NEED before you buy. (Think about specific features and requirements that are important to you.) 2. Compare stores 3. Compare brands, prices, and quality before making a selection. 4. Check for any extra charges. 5. Read and understand the warranty. 6. Written contracts when purchasing large items and read the contract terms carefully. 7. Read and follow the use and care guides. 8. Keep all sales receipts, warranties, and instructions. 9. Understand the store's refund or exchange policy. 10. Check your bill for accuracy. 11. Before purchasing anything from a company, check out its reputation. 12. Do not pay for items or services until they are acceptable to you. 13. Avoid telephone sales. 14. Price is not necessarily an indication of quality. 15. Calculate the cost per unit (unit pricing) to determine the best purchases. 16. Consumers are responsible to protect themselves against fraud. guidelines

13. Work On This Assignment Caveat Emptor – CareatVenditor

14. Unfair & Deceptive Selling Methods Fraud

15. Utah State Laws Against Fraud • Indicating a warranty that does not exist • Selling an item as free when purchased in conjunction with another item & then raising the price of the other item • Saying that repairs are necessary when they are not • Saying repairs have been made when they have not • Telling a consumer they have won a contest when they have not

16. Pyramid Schemes • Illegal scams in which large numbers of people at the bottom of the pyramid pay money to a few people at the top.

17. Home Improvement Fraud • Will approach homes that obviously need repairs • Make sure contract is written and put every promise in writing. • Never pay the cost of the entire job before work is completed (10-30% reasonable) • Never release final payment until job is complete • Check with BBB for complaints • After job is complete, they will claim there has been a misunderstanding & the customer owes a lot more money than was originally quoted.

18. Vacation Fraud • Offering FREE trips • These end up very costly once you pay all of the conditions that are attached • Prevention: • Use a contract!

19. Mechanic Fraud • Have car checked before leaving on vacations! • Get a second opinion if you are away from your usual mechanic. • http://www.knbc.com/video/9152183/detail.html#

20. Telephone Fraud • Americans lose an estimated $1 million every hour to investment fraud promoted over the phone. • Hang up when it sounds to good to be true • Never give you credit card number • Ask the solicitor for the name, address, and phone for the company • Be wary of unknown charities

21. Health & Nutrition Fraud • Promise of weight loss, adding years to their lives, curing ailments, and providing higher nutritional benefits.

22. Email Fraud • http://www.myfoxprovidence.com/myfox/pages/Home/Detail;jsessionid=FF367C18B2BF9BD0FFC0ED76CC94EF43?contentId=4947703&version=3&locale=EN-US&layoutCode=TSTY&pageId=1.1.1&sflg=1

23. Lemon Law • Consumers who buy a new automobile or motor home with significant defects that cannot be repaired, or is a lemon, can obtain relief, through a cash refund or replacement

24. Cooling-off • When a consumer buys an item at home or at a location that is not the seller’s regular place of business, the consumer has 3 days to cancel that purchase if the cost was $25 or more. • The consumer’s opportunity to cancel for a full refund extends until midnight of the third business day • Set by Federal Trade Commission (FTC)