Consumer Protection Agencies Introduction to Business & Marketing.
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Transcript of Consumer Protection Agencies Introduction to Business & Marketing.
Consumer Protection Agencies
Find solutions for consumer problemsMost consumers solve problem
themselves: Contact the seller customer service Contact seller headquarter
Contact consumer organizationsEnd all – file claim in small claims
court
Types of Consumer Protection Agencies
Nongovernmental Consumer
Organizations: The Consumer Federation of
America National Consumers League Consumers Union Major Appliance Consumer
Action Program The Media
Government Consumer Organizations:
The Federal Trade Commission
US Department of Agriculture The Food And Drug
Administration National Highway Traffic
Safety Administration Consumer Product Safety
Commission State Public Utilities
Commissions State Insurance Commissions State Licensing Agencies
Nongovernmental Consumer Organizations
Work on behalf of consumersConsumer Advocate: groups and individuals
work to protect, inform, and defend consumers
Many consumer advocates are private, nonprofit groups
The Consumer Federation of America
Works to inform the public & gov’t about consumer issues
Works with public officials to promote polices that benefit consumers (ensure fair/balanced debate about issues important to consumers)
Studies federal laws that affect consumersLets members know they can support
legislation to help the public
National Consumers League
Nations oldest nonprofit consumer groupMembership open to anyoneProvides gov’t agencies, businesses, other
organizations with consumer point of viewNational Fraud Information CenterMonitors Internet to alert consumers of fraud
Consumers Union
Nonprofit organization that publishes Consumer Reports magazine
Researchers test products & report findingsTestifies before gov’t agencies on consumer
concerns
Major Appliance Consumer Action Program
Association of Home Appliance Manufactures Most major appliance dealers are membersMACAP helps consumers solve problems with
large appliances: Washers Freezers Stoves
The Media
Internet sites, radio, TV stations, newspapers advocate for consumers
Often have consumer reporters who report issues importation to consumers: Product Safety, Testing, Shopping
Reporter might feature local business problem and visit the location to solve problem
Government Consumer Organizations
Each state has a consumer affairs divisionIn some states, Attorney General’s office
handles consumer affairsSet up to protect consumersPublish materials to help consumers with
buying decisions and problemsThe Federal Citizen Information Center is a
good source for consumer information
The Federal Trade Commission
FTC enforces federal antitrust and consumer protection laws
Investigates complaints against companiesSeeks to ensure nations markets function
competitivelyWorks to eliminate unfair or deceptive
practices
US Department of Agriculture
USDA inspects foods and grades themGrade labels: indicate the level of quality of
foodsEXAMPLE: meat can be labeled ‘prime’ or
‘choice’Consumers use grade as a guide for what to
buy
The Food And Drug Administration
FDA regulates the labeling and safety of food, drugs, cosmetics, dietary supplements, and medical devices sold in the US
FDA tests and approves all drugs before they can be offered to consumers
Reviews products already on the market
National Highway Traffic Safety Administration
Part of the US Department of TransportationAgency sets and enforces safety standards for
motor vehiclesCan require an automaker to issue recall Recall: order to take back & repair or replace
a product that has defective parts
Consumer Product Safety Commission
Oversees the safety of products such as toys, cribs, power tools, electronics, furniture
Contributed to a 30% decline in deaths/injuries associated with consumer products over the last 30 years
State Public Utilities Commissions
Regulates the rates charged by electric, gas, and water companies
Also may regulate telephone services in local areas
Protect consumers from unfair pricingPublic utilities are legal monopolies - a
company is allowed to operate without competition
State Insurance Commissions
State government bodies responsible for regulating the activities of insurers and health plans
Control and approve insurance rates
State Licensing Agencies
Issue licenses - legal permits to conduct business
Licenses provide assurance to consumers that license holder is qualified to do a service
Doctors, teachers, roofers, hair stylists require licenses
Activity
Students are to visit http://www.cpsc.gov and complete the following: Research the recall of the Fitbit Force:
1. What impact does this recall have on the company? 2. What should consumers do if they own this product? 3. How will this recall impact consumer perception of the company?
Research the recall of your choice of one additional product:1. What impact does this recall have on the company? 2. What should consumers do if they own this product? 3. How will this recall impact consumer perception of the company?
Students are to visit http://www.nhtsa.gov/ and complete the following: Click on Distracted Driving and read about this campaign
1. What are the 3 main types of distractions when you drive?2. List 3 ways you can be distracted while driving (not counting
texting) – do you believe these actions really distract the driver?3. How can you as a high school student get involved?4. What are the Distracted Driving laws in Virginia?