Consumer Issues Objective 5.01C Students will understand consumer protection agencies.
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Transcript of Consumer Issues Objective 5.01C Students will understand consumer protection agencies.
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Consumer Issues Objective 5.01C
Students will understand consumer protection agencies.
Rights of consumers were first identified by President John F. Kennedy in a message to Congress in 1962. Later presidents have added additional rights to this “Consumer Bill of Rights.”
Activist against corporate carelessness and greed, Ralph Nader brought attention to products that were not safe for consumers. He gained national attention in 1965 with his book, “Unsafe at Any Speed”. Known as “Father of the Consumer Movement”
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What Laws Protect Consumers?
Brainstorm with a partner.
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Federal Laws/Agencies That Protect• Clayton Antitrust Act• Clean Air Act• Clean Water Act • CPSA-Consumer Product
Safety Act• EEOC-Equal Employment
Opportunity Commission• EPA- Environmental
Protection Agency• FCC- Federal
Communications Commission
• FDA – Food and Drug Administration
• FLSA – Fair Labor Standards Act
• FPLA -Fair Packaging & Labeling Act
• FTC -Federal Trade Commission
• ICC -Interstate Commerce Commission
• NLRB - National Labor Relations Board
• OSHA - Occupational Safety and Health Administration
• Patent and Trademark Office
• Robinson-Patman Act• IRS -Internal Revenue
Service• TILA - Truth in Lending Act• UCC –Uniform Commercial
Code• USDA - United States Dept
of Agriculture• USPS – United States
Postal Service
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Federal Trade Commission (FTC)
Prohibits deceptive and unfair trade practices among businesses
Very broad act that created numerous laws and agencies to regulate special areasHave you ever been deceived?
Key concept: FAIR TRADE PRACTICES
ADVOCATE for every US consumer
http://ftc.gov/
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What are Unfair and Deceptive Trade Practices?Includes:
Price fixing on goods/services
Deceptive prices on service contracts
Door-to-Door Sales
Fraudulent Misrepresentation
Telemarketing Fraud
Work at home schemes
Illegal Lotteries
Scams
Gambling
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Antitrust Laws
Purpose: To foster competition and fair trade To eliminate restraint of trade caused by
MonopoliesPrice fixingPrice discrimination
Q: Are all monopolies a bad thing for consumers?
Q: Why are some monopolies, such as utility companies, legal?
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Antitrust ActsSherman Antitrust Act - 1890
First antitrust law
Evolved from the “Robber Baron” historical period
Clayton Antitrust Act - 1914 Clarifies laws, adds penalties for monopolies, fair trade, price fixing and price discrimination
Robinson-Patman Act-1936
Protects small businesses from price discrimination
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United States Postal Service (USPS)
Established to provide a federal system of mail
Protects consumers from mail fraud* with federal USPS regulations
* Example: chain letters
https://www.usps.com/
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Federal Communications Commission
Licenses and regulates the operation of airwaves that are utilized in:
Television
Radio
Telephone
Telegraph
http://www.fcc.gov/
Policies banning nudity, expletives and other indecent content on broadcast radio and televisionEx: Janet Jackson 2004 Super bowl Expose
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Environmental Protection Agency (EPA)
Responsible for environmental protectionGoverns the environmental laws for air, water, solid waste, toxic substances, pesticides, and noise pollution
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http://www.epa.gov Boston’s “Green” Project
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Environmental Protection Agency (EPA)
Manages all federal antipollution programs
Handles air, solid waste, toxic substances, and pesticides
Sets guidelines for program
Monitors programs
Establishes grants to help eliminate pollution
Researches and sets national standards for programs
Issues permits
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Record Setting 300 +mpg
Standards for Lead in Paint
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Clean Water ActPurpose: Protects water
qualityRegulates water quality standards for rivers, lakes, streams, and oceans
Helps to reduce pollution in waterways, rivers, oceans, wetlands, wastewater treatment plants, and controls runoff pollutionProtects the water for swimming, fish, shell fish, and wildlife in water
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Clean Air Act
Established to protect public health and the environment
Created by the US EPA to authorize the National Ambient Air Quality Standards (NAAQS) to assist in the creations of law to protect the atmospheric environmentSets quality standards for factories and auto emissionsHandles problems such as acid rain, ground-level ozone, smog, and air toxinsWeather channel gives air quality info daily- “air particulates”
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Toxic Substance Control Act
Tracks industrial chemicals produced and imported into the US
Governed by EPA Screens, tests, and reports chemicals that pose a threat to the environmentEPA can prohibit the manufacture or import of chemicals thought to be hazardous
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Labor Laws
Fair Labor Standards Act:
Restricts child labor
Identifies dangerous jobs
Minimum wage
Time and a half overtime
Equal Pay Act: equal pay for equal work
Social Security:Contributions by employee and employer for benefits
Worker’s Compensation Act:
provides income or health care
if illness caused by job or injured on the job
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Labor LawsCivil Rights Act of 1964:
Prohibits discrimination in employment practices
Complain to the Equal Employment Opportunity Commission (EEOC)
Link: Civil Rights Act and the EEOC
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Laws Protecting Debtors
Set maximum interest rates
Usury- state laws that regulate the maximum interest rate legally chargeable to consumers
Truth in Lending Act
Requires full disclosure of interest and finance charges over life of loan
Limits chargeable items on lost/stolen credit cards to $50
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Laws Protecting Debtors
Equal Credit Opportunity Act
When applying for credit, decisions must be made on:
*Ability to repay, based on evaluation of application, including:
Income, current debt obligations, credit rating, dependents
*Cannot legally discriminate based on gender, age, ethnicity, or religion
*Acceptance and rejection Based on income, current debts, or poor credit
record If denied, applicant may request reasons in writing
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Product Liability
Consumer Product Safety Act of 1972Created the Consumer Product Safety Commission (CPSC) Sets product standards for hazardous productsRequires manufacturer or seller to test quality and reliability before marketing productCan require recall, repair, replacement or refunding of the purchase price, of unsafe products Examples:
Children’s toys with dangerous parts Defective vehicle tires that cause accidents
http://www.cpsc.gov/
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Food, Drug and Cosmetic Act
Created the Food and Drug Administration (FDA)Passed in 1903 after President Teddy Roosevelt read “The Jungle” by Upton SinclairProhibits adulteration or mislabeling of foods, drugs or cosmeticsCreates standards for packaged foods, drugs and cosmeticsApproves new pharmaceuticals (prescription drugs)
http://www.fda.gov/
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Food and Drug Administration
FDA regulates packaged Food, Drugs, Cosmetics including:
Inspecting production facilities for cleanliness
Setting standards of purity and quality
Approving ingredient lists as to fitness for human consumption or use
Requiring labeling with manufacturer, packager, distributor, weight & nutritional information to assist consumer in informed decision making
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Food and Drug Administration
FDA discourages the sale of harmful products through:
Imposing high taxes. Issuing label or package warning.Prohibiting the sale of the product.
Examples: tobacco, alcohol, saccharin, red food dye
Can you name other examples?
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United States Department of Agriculture (USDA)
Regulates preparation and sale of fresh produce, meats and dairy products
Inspects canners, packers and processors and distributors for sanitary conditions and handling
Inspects products to ensure freedom from disease and fit for human consumption
http://www.usda.gov/wps/portal/usda/usdahome
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What could you do with 90 Gatorade bottles?
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National Energy Conservation Policy Act - How can we be more efficient?
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Weights and Measures Division of the National Institute of Standards
Promotes uniformity in weights and measures laws, regulations, and standards
Allows consumers to make comparison shopping decisions such as unit pricing
Examples: gas pumps, dispensing of pharmaceuticals, measurement by nurses, food weights and measurements
http://www.nist.gov/index.html
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Division of Weights and Measures
The correct way to weigh yourself:
“I can't believe I was doing it wrong all these years.WE MUST SPREAD THE WORD!”
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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/