Consumer Powers and Protections

1. Consumer Powers and Protections

2. Consumer Powers and Protections • The Power of Consumers • Protecting Consumers’ Rights • Safeguarding Your Privacy • Recognizing Deception and Fraud • Resolving Consumer Problems

3. The Power of Consumers • Economic roles of individuals • Ways that consumers influence the marketplace • Impact of technology on consumers • Effective uses of consumer skills

4. Economic Roles of Individuals • Consumer- use goods/services • Consumers have an impact on mktplce Consumers spend $bus. makes $ee’s make $spend • Worker- earn $ at job • Citizen- use public services/pay taxes/vote • How are the roles interrelated? How might a person fill all three? Draw a diagram that illustrates how decisions made by individual consumers affect the marketplace. Interview someone who owns a retail store in the community and ask how the store strives to please its customers through products, services, and atmosphere.

5. Teens as Consumers • Spend $170 billion annually • Family buying decisions • Household shopping • Provide input How could you help your family make wise buying decisions?

6. Technology and the Consumer • Changes in technology • Communication • Accessing information • Purchasing goods and services

7. Effective Consumers • Set goals • Decide what u want, how to carry out the plan • Set priorities on time, energy and money • Plan for career, education, training • Think critically • Carefully consider alternatives and their outcomes • Avoid acting on impulse • Stay realistic upon encountering persuasive ads/aggressive people • Do their research • Read, observe, ask ?s about options available • Search for reliable businesses • Compare prices, quality, features, and customer service policies • Manage everyday finances • handle income, expenses, taxes, banking, and credit in a responsible way • Plan for financial security • Set plans for savings, investing, and insurance, call professionals for help

8. Protecting Consumers’ Rights

9. Protecting Consumers’ Rights • Consumer rights and responsibilities • Identify laws that protect consumers • Describe sources of consumer information and protection

10. The Consumer Movement • Unfair treatmentadvocacy • The power of consumers=economic and political power of bus and industry • Consumer advocates • St and ntnl levels: • Investigate bus practices • Expose unfair or dangerous situations • Encourage the passage of laws protecting consumers

11. Consumer Advocates

12. Think… • What new issues can you think of that must be addressed to protect consumers in the marketplace today? • List 3 in your notes.

13. Consumer Rights and Responsibilities • Consumers have rights! • 4 rights identified by JFK in his message to congress in 1962 • Expanded into “Consumer Bill of Rights” • Groups of 2: • Link to Rights/Responsibilities • Create a brochure (rights/responsibilities) • Create skit of a right or responsibility (10 min.) • Complete the sentence: • “I showed consumer responsibility when I ….”

14. Government Protection • Consumers can seek legal remedy when wrongs are done to them • Right to redress (seek remedy for a wrong/loss) • Think…. • President Gerald Ford promoted the right to consumer education, expressing his hope that it would become “an integral part of regular school instruction.” • What impact does this right have on you?

15. Federal Laws • Link to chart pg. 30 • Make flash cards for the federal laws on chart

16. Federal Agencies • Enforce laws • Set up rules and reg’s to ensure compliance • Federal Agencies Table *Some agencies also protect bus’s Have you ever observed one of these consumer protection laws in action?

17. State and Local Laws • St and local legislators passed laws • To find state and local agencies: • Check govt listings in phone book • Visit FCIC-Consumer action website • Other websites: • National Association of Attorneys General • National Association of Consumer Agency Administrators • Visit the website of your state attorney generalWhat measures do they take to protect consumers in KY? • Find the name of a current piece of consumer legislation in Congress. Write a summary of this bill’s purpose. • KY attorney general website: create newsletter from the attorney general Jack Conway informing them of their efforts and anything new they are working on.

18. Other Consumer Assistance • Consumer groups- focused on consumer education, protection, and advocacy • Consumer testing agencies and publications- buy products, test them, report the results • Business and industry groups- (BBB)-provide reliability reports on bus’s & allow consumers to file a complaint • Consumer affairs departments-bus’s have full-time comm. w/ consumers about their rights/needs • Consumer action panels-grp formed by trade assoc to address complaints • BBB website-research a company and a charity • News media- warn consumers about local scam artists who try to cheat consumers (alert consumers about it and what to do)

19. Media Reporter Activity • Assume the role of a media reporter • Write a story about a fictitious consumer complaint

20. Safeguarding Your Privacy • Ways to protect yourself • Laws that protect consumer privacy • Guidelines for preventing online harassment

21. Identity Theft • Threat to personal security • Identity theft- the illegal use of an individual’s personal information • Social Security number-unique 9-digit number • Do not give it out or carry your card with you • Some agencies ask for it that have no right 2 it • Identity theft: How does it happen?

22. Preventing Identity Theft • Safeguard your SS # • Handle mail with care • Personal info in locked drawer • Safeguard sensitive info on computer with passwords (#s & letters)- Don’t share or write down where can b found • Don’t give out personal info over phone, through mail, email or web unless initiated • Secure sites-websites that use safeguards (shttp:// or https://) • Secure your home Internet connection • Shred personal info

23. If Your Identity is Stolen….. • File a report with the police • Notify your bank and credit card companies • Close any accounts • Call the 3 major credit reporting companies and ask for a fraud alert and no new accounts be opened • Equifax, Experian, and TransUnion • Call the FTC or visit it’s website for info about resolving problems

24. Data Collection and Privacy Issues • You may have to provide personal info to: • financial institutions, health care providers, insurance companies • when you buy or register a product • What do the companies do with all of your information? • CC #s –most keep secure • Their own marketing purposes • Sell your info to other retailers • Analyze your surveys for their benefit (product development) Creat a chart displaying the advantages/disadvantages of having personal info used for each

25. Protecting Your Privacy • Co’s provide choices on how your info is used • Law addressing consumer privacy are being developed • Ex: Financial institutions privacy policy (have to give you a copy) • Ex: Children’s online privacy protection act-post privacy policy, get parent permission • Who oversees this act? • FTC • Check all companies privacy policies before providing your info • May have right to “opt-out” of info sharing • Shred all documents with your info • Unsolicited requests for your CC # or info-NO!

26. Online Profiling • OP-practice in which companies collect info about the websites a consumer visits, then use info to predict what you may buy in future • How do you feel about websites’ use of cookies to remember info about you? • Do you consider this a useful feature or an invasion of privacy? • Is it worth the inconvenience to set your browser to reject cookies?

27. Internet Safety • Keep info private in: chat rooms, forums, IM • Anyone can obtain it once its out there! • Cyber-stalking- online harassment • Spread false info about you • Give your email-you will receive threatening emails • Prevent online harassment: • Reveal as little info as possible (gender neutral names and addresses) • Share email with friends and family only-alternate for online stuff • Watch what you say online-don’t create enemies • Block transmission of mail, chat or IMs from ones you don’t know • Save harassment as proof, tell administrator and law enforcment

28. Recognizing Deception and Fraud After studying this you should be able to… • Recognize examples of deception and fraud • Explain how to report deception and fraud

29. Deceptive Advertising • Dec. Advtsg-advertising that is likely to mislead consumers through false statements, omitted info, or other means. • Unfair advantage of consumer • Illegal-FTC empowered to stop it

30. Deceptive Ad. Examples • Bait and Switch-advertises an item but does not sell at that price and offers another • False promise of free gifts-”free gift” must have no strings attached (have to buy to receive gift-not free) • Deceptive pricing-advertise as sale but actually same price • Hidden catches-additional feesprocessing fees, hidden restrictions, etc. Ad has to disclose this! Activity: Role-play-deceptive ads

31. Fraud • Fraud-deceitful conduct designed to manipulate another person for some gain. • Lying, repeating something known 2b false, concealing a fact that could have changed dec. • Ex: Give to “charity”person keeps it • Ex: seller sells item they know 2 not work right • Illegal • According to US Dept of Justice: 24 mill ppl victims ALWAYS CHECK FINE PRINT!

32. Pyramid Schemes • Pyramid schemes-an illegal get rich quick plan • Try to pass it as a “gift” or a “multi-level marketing plan” • Impossible to sustain • Only individuals who start will make money Search the FTC website for the difference between pyramid schemes and multi level marketing plans

33. Chain Letter • Chain letter- message sent by postal mail or email that instructs the recipient to send copies to a certain number of people • Fraudulent & illegal when: item of value item of value Ex: “Send $5 to 1st person on list, remove name, add your name to bottem, send letter to several people

34. Fraud and Technology • New types of fraud using Internet • Chain letters (email) • Pyramid schemes (websites) • Technology used to combat fraud • “teaser-sites”

35. Warning signs of deception and fraud • Businesses won’t reveal physical location (city and state) • Require u 2 pay up front 2 receive info or opportunities to make $ • High pressure sales tactics requiring immediate “today only” • Anything that fits pyramid or chain letter description • Exaggerated claims that seem too good 2b true

36. Reporting • FTC website • Information • Consumer complaint form • National Fraud Info Center • Website and toll free number • Local consumer protection agency • BBB • State attorney general’s office • Post office (if was in mail) • Local media

37. Resolving Consumer Complaints • Demonstrate how to make an effective consumer complaint • Identify sources of assistance for resolving consumer problems

38. Registering a Complaint • State problem clearly, ID desired outcome, receipts, know stores policies • Contact Merchant- contact person on level you worked with or go to website (FAQs) • Be polite, professional • Take notes • May need follow up inquiry-higher position • Letter of complaint (may write more than 1)

39. Dispute Resolution • Use a dispute resolution program: • Mediation • Arbitration • Legal action • Small claims court –up to $5000 • Lawsuit (legal aide if no $) • Class action suit-lawsuit filed on behalf of grp