Understanding Consumer Protection Actions and Common Complaints

1. Bell Work • Page 385, 15-2 assessment 1-4

2. Consumer Protection Actions 15-3

3. Common Consumer Problems • Damaged item • Wrong item shipped • Credit card payment not recorded • Product does not work

4. Top business complaints • Motor vehicle purchases, repairs • Deceptive investments • Identity theft/credit card fraud • Guaranteed and advance fee loans • Credit repair scams • Telemarketing, catalog, and magazine sales • Internet auctions, online purchases • Prizes, sweepstakes, and phony lottery promotions • Work at home and start your own business opportunities • Travel and vacation promotions • Health and diet gimmicks

5. Deceptive Business Activities • Most business scams range from mail to the internet fraud. • The most common schemes are on the internet involving the sales of general merchandise. • Can also take the form of prizes, sweepstakes and credit card offers. • BE CAUTIOUS WHEN MAKING INTERNET PURCHASES! • If it sounds to good to be true it probably is.

6. Protection for shoppers • Internet and TV shopping protected by federal govt. • Must send your item with in 30 days unless specified • If there is a delay the seller must notify you • If un-received or returned item is billed to your credit card, you have 60 days to dispute it. • The company has 30 days to respond. • Within 90 days the credit card company must investigate the matter

7. The complaint process 1. Contact place of purchase • Most complaints are settled here • Make sure you have documentation 2. Contact company head quarters • If place of purchase does not work • Contact customer service department • Provide the facts • Write formal letter/email • Explain what action you would like to be take (be specific)

8. The complaint process cont. 3. Involve consumer agency • Consider contacting a state, local, or federal agency • They are usually specific to types of business • If contacting company does not work/satisfy you • Contact the Better Business Bureau 4. Take legal action • Last resort • Third party resolution • Class action lawsuit • Small claims court • Hire a lawyer

9. Legal actions for consumers • Third Party Settlements • Mediation- Third party tries to get a compromise • Arbitration- Third party has legally binding say • Class Action Suits • Used when many customers have the same issue • Lawyers represents a group of individuals

10. Legal actions cont. • Small Claims court • Resolves cases involving small amounts • Limits are $1,000-$10,000 depending on the state • Lawyers usually not involved • Individuals present the facts and show evidence • Witnesses may be used • Using a Lawyer • If all else fails this is the final step • Used when the damages are large amounts of money • Research your lawyer • Ask him/her many questions

11. Significant purchases • A significant purchase is normally anything over $500. • Our bodies go through physiological changes when making a significant purchase. • We all have that spoiled, red-faced, grocery store kid living inside of us. • Always remember, if you can’t pay cash, you can’t afford it!

12. Buying only Big, Big Bargains • It is proper to get a great deal if you: • Have in no way misrepresented the truth. • Have not set out to harm the other party. • Have created a win-win deal. • The first key to opening the door to huge bargains is learning to negotiate everything.

13. 7 Basic Rules of Negotiating • Always tell the absolute truth. • Use the power of cash • Cash is Emotional • Cash is visual • Cash has immediacy 3. Understand and use “Walk away power” 4. Shut Up 5. “That’s not good enough” 6. Good guy, bad guy. 7. The “If I take away technique”

14. The second key to opening the door to huge bargains is that you must have patience. • Don’t get married to a purchase. • The third key to opening the door to huge bargains is that you must know where to find deals.