Consumer Advocates Who watches out for the consumer

Consumer Advocates “Who watches out for the consumer? ” Private, Government, Regulatory Agencies, Magazines, Associations, Leaders

Who is a Consumer? You are!!! l l Who is a consumer advocate? A party who stands up for another party and defends them. Who is an advocate for you as a consumer? First and foremost…you are!!! Let’s review your rights…and responsibilities as a consumer.

Consumer Bill of Rights 3

Consumer rights and responsibilities l l l l I want to say… To be informed-compare, evaluate To choose carefully-shop around-quality, brands To use products safely-read labels, follow instrux To speak out and be heard - letter of complaint To seek remedy and have problems corrected – repair, reimburse, or replace To consumer education – read, compare, be aware of illegal practices, use consumer publications To learn consumer skills –conservation, consumerism

Consumer Bill of Rights What is the purpose of the consumer bill of rights? The consumer bill of rights protects consumers from unfair business practices. 5

Consumer Bill of Rights continued l The Right to Be Informed – l The Right to Safety – 6 Consumers have the right to be informed of what a product is and its functions. Consumers have the right to be protected from harm while using a product or service.

Consumer Bill of Rights continued l The Right to Choose – l The Right to Be Heard – 7 Consumers have the right to choose what to buy among a variety of products and services. Consumers have the right to talk with businesses about products or services they offer. Consumers may share their comments, complaints, concerns, or questions.

Consumer Bill of Rights continued l The Right to a Remedy – – – 8 Consumers are assured that they can seek legal remedy when they encounter a problem or defective product. What is a guarantee? (A promise that a product meets certain quality. ) What is the difference between an express and an implied warranty?

Consumer Bill of Rights continued l The Right to Consumer Education – l The Right to Service – 9 Consumers have the right to be informed about how their purchasing decisions impact them personally and the economy. Consumers have the right to receive goods and services at the promised level by companies.

Speaking out - Letter of Complaint l l Use positive tone since letter is negative by nature Three basic paragraphs – – What happened What action do you want receiver to take? l – Refund, repair, replace Positive closing l l How will they reach you? Have you attempted to reach favorable response?

How consumers make a difference l Social awareness due to consumer and media exposure – – l Boycotts- large # of consumers refuse to buy – – – l MADD- Mothers Against Drunk Driving “Erin Brockovich” –polluted ground water “Dollars vote” concept Prices go down – ex: gas prices Business may fail - ex: clothing made using child labor Conservation- reuse, recycle, reduce

Common socially responsible practices of businesses 12

Common Socially Responsible Practices of Businesses l l Socially responsible practices of businesses include practices that positively impact communities. Common social responsibilities addressed: − − 13 Environmental protection Workplace diversity Job safety Employee wellness

Common Socially Responsible Practices of Businesses continued l Companies can contribute to environmental protection by – – l 14 Implementing actions to conserve natural resources Minimizing pollution of air and water resources What is an example of an organization or action that protects the environment?

Environmental Protection Agency l l 15 EPA enforces and provides standards for air and water quality. www. epa. gov

Recycling and Conservation l Save the earth. It's the only planet with chocolate.

Recycling? l l l l Aluminum cans, metals – new aluminum products, structural products Animal wastes- fertilizers Yard/kitchen wastes- compost for gardens Plastic bottles – carpet, auto parts, fiberfill Newspaper- newsprint, insulations, paperboard Construction waste, tires- pressboard, roads, playground mulch Furnishings & clothing- reused by another person (Goodwill, Salvation Army, Kidney Foundation, garage sales) Glass- jars, bottles and construction materials

Federal Citizen Information Center l l l Purpose: to provide American citizens with a catalog of federal publications available May order info on-line Located in Pueblo, Colorado Phone # 1 -888 -8 PUEBLO http: //www. pueblo. gsa. gov/. United States General Services Administration

Common Socially Responsible Practices of Businesses continued l l 19 Workplace diversity exists in a company when the employees represent a variety of groups including women, ethnic groups, physically challenged, and older workers. What is an example of an organization or action that enforces workplace diversity?

WORKFORCE DIVERSITY l l 20 The American with Disabilities Act (ADA) enforces regulations to accommodate people with disabilities. The Age Discrimination in Employment Act protects employees 40 or over from employment decisions based on their age. The Equal Employment Opportunity Commission (EEOC) protects against workforce discrimination. Companies providing workforce diversity training to employees.

Common Social-responsible Practices of Business continued l l 21 Job Safety is ensuring work environments are risk-free of accidents. What is an example of an organization or action that enforces job safety?

What is an example of an organization or action that enforces job safety? l l l 22 The Occupational Safety and Health Administration (OSHA) gives surety to safe and healthful working conditions for men and women. A company’s schedule cleaning of bathrooms used by employees three times a day. Employees who work in a plant that manufactures chemical are required to wear proper clothing to protect from skin irritations

Common Socially Responsible Practices of Businesses continued l l 23 Employee Wellness programs are offered by employers to maintain a healthy workforce. What are some examples of employee wellness activities? Stop smoking and weight-loss counseling

Evaluation of Social Responsibility l Benefits – – – 24 Expanded justice for groups of a society. Enhanced company image. Reduced need for government actions. Improved quality of life in a community and around the world. Increase awareness of social issues among workers, consumers, and others.

Evaluation of Social Responsibility The costs of providing social programs must be realistic to allow a business to earn a profit. 25

Ethics What is the purpose of business ethics? Business ethics address the conduct of business and employees. 26

Ethics Guidelines for responsible business conduct addresses the following questions: – – 27 Is the action illegal? Does the action violate professional or company standards? Who is affected by the action and how? http: //www. youtube. com/watch? v=CUCSK 1 QFwts &feature=related&safety_mode=true&persist_safe ty_mode=1&safe=active

Government protection 28

Government Protection continued How are workers protected in their work environments by the government? l Safe work conditions l Minimum standards for buildings, machines, and chemicals 29

Government Protection continued l A contract is an agreement usually between two parties to exchange goods or services for something of value, usually money. l What are the elements of a contract? 30

6 Elements of a Contract 1. Offer – 2. Acceptance – 3. an unqualified willingness to go along with the offer Genuine Agreement – – 31 Proposal by one party to another with intent to create a legal binding agreement if a valid offer is met by a valid acceptance then a genuine agreement exists Can be destroyed by fraud, misrepresentation, duress, or undue influence

6 Elements of a Contract 4. Capacity – – Legal ability to enter into a contract Ex Minor, mentally ill, drunk, drugs 5. Consideration – Must exchange something of value in order to create a bond 6. Legality – 32 – Must be permitted by law Courts will not enforce an illegal contract

Government Protection continued l l The government enforces contracts between businesses and individuals by ensuring agreed upon work and the exchange of money or other means are completed. Examples of when contracts are used: – – – 33 Buying an automobile Leasing a building Buying inventory

Oral vs. Written Contracts Statute of Frauds – Requires that some contracts must be in writing l l l 34 Contracts to pay debts of others Contracts to pay debts of deceased persons Contracts requiring more than a year to perform Contracts to sell real property Contracts for sale of goods over $500 Prenuptial contract (contemplation of marriage)

Express vs. Implied warranty 35 • An express warranty is a verbal promise by a company about the specific quality performance of a product. • An implied warranty may not be verbally communicated but is understood to apply anyway.

Government Protection continued l Intellectual property protected by the government are: Copyrights (creative works of artists, authors) Lifetime + 70 years – Patents (right to make, use or sell the item for 17 years) – Trademarks (registered words, letters or symbols – 36

Examples of Intellectual Property l l l 37 Copyright: Published poem titled Still I Rise by poet Dr. Maya Angelou Patents: Nike’s production of the footwear Trademarks: Starbucks symbol found on coffee cups

Consumer Product Safety Commission (CPSC) l l l Established 1972 Federal Agency Purpose: – – – Set standards for product safety Promoting safety from unreasonable risk of injury from products Testing products Initiate recalls of unsafe products from the marketplace Conducting research and education programs ? What are some recent research recalls? Go to www. cpsc. gov and find out.

Underwriters Laboratories l l Tests electrical and other consumer products Consumer Safety Can you think of places you have seen the UL label? Underwriters Laboratories Inc.

Federal Trade Commission (FTC) www. ftc. gov l l l Founded in 1914 Federal Agency Purpose: – – l To protect business and consumer from unfair competition (advertising, fraud, bait and switch, etc. ) To enforce antitrust laws (monopoly) To enforce truth in lending laws (credit) To enforce truth in labeling laws (consumerism) Have you ever been the victim of unfair competition?

Environmental Protection Agency www. epa. gov l Federal Law – l Environmental Protection Act (1970) Purpose: – – Sets, monitors, and enforces environmental standards Researches the effects of pollution on AIR, WATER, LAND

Federal Aviation Administration (FAA) www. faa. gov l l 1934 – started as Bureau of Air Commerce Expanded in 1938 by Civil Aeronautics Board Became Federal Law in 1948 under Federal Aviation Act (due to mid-air collisions air traffic controllers became licensed and regulated) Purpose – – l l To set safety standards To license pilots To regulate and monitor aircraft safety Ensure safe navigation for pilots and aircraft Enforced through Department of Commerce (one of federal cabinet offices) What are some other cabinet offices?

Federal Communications Commission (FCC) www. fcc. gov l l l Established in 1934 Federal Agency Purpose– – To license radio and television stations To oversee interstate and international telephone and telegraph operations l Example: special telephone taxesadvertised prices change due to federal and local (911) taxes added

Equal Employment Opportunity Commission www. eeoc. gov l l l Established in 1964 (Civil Rights Act) Federal Agency Purpose: – – Enforces laws prohibiting job discrimination on the basis of: Race, Color, Religion, Gender, National Origin, Age, or Handicap

Federal Reserve Board www. federalreserve. gov l l l Established in 1913 aka “The Fed” Purpose: – – Set monetary and credit policies Regulate banks in the Federal Reserve System l – l l All national banks Control money supply, regulate interest rates, stabilize economy Do you know which branch of the Federal Reserve services the Charlotte area? Answer-Richmond

Food and Drug Administration www. fda. gov l l l Established 1906, expanded 1931 Federal Agency Purpose– – – l l Approve and issue licenses for manufacturing and distribution of new products in market Setting and maintaining the purity and safety standards for foods, drugs, health aids and cosmetics Inspecting product manufacturing facilities Ensure accurate labeling Removing unsafe products from the market What book that created uproar and led to founding of FDA? The Jungle, by Upton Sinclair – President Theodore Roosevelt

Interstate Commerce Commission Surface Transportation Board l l Federal Agency established 1887 Became Surface Transportation Board (STB) in 1995 Affiliated with the U. S. Department of Transportation. Jurisdiction over: – – – l Purpose: – – l l Railroad rates, service issues, mergers, sales Trucking company and moving van rates Intercity passenger bus financial, and operational matters To set rates, routes and rules for interstate trucks, railroads and businesses To improve transportation safety through research, monitoring vehicles and manufacturers for safety issues (emissions, tires, weight, fuel consumption) Ever see weigh stations on the interstate? What vehicles must be checked for emissions?

National Labor Relations Board (NLRB) www. nlrb. gov l l l Established 1935 Federal Agency Purpose: – – – To protect employees against unfair labor practices To investigate unfair labor practices To regulate labor unions (collective bargaining by employees with management)

Nuclear Regulatory Commission (NRC) www. nrc. gov l l Began in 1946 as Atomic Energy Commission Expanded in 1974 as NRC Federal Agency Purpose: – – l Set standards and regulate the operation of nuclear power plants Issue licenses for nuclear power plants Locally- Duke Power (Mc. Guire Nuclear Plant)

Occupational Safety and Health Administration (OSHA) www. osha. gov l l l Founded in 1970 Federal Agency Purpose: – – – To promote health and safety in the workplace To set standards of safety To investigate violations and assess penalties for violations

Securities and Exchange Commission (SEC) www. sec. gov l l l Founded in 1934 Federal Agency Purpose: – – – l l To regulate stock exchanges To oversee investment companies and brokers To protect investors ? What stock exchanges can you name? Amex, NYSE, Nikkei, London, OTC, etc

United States Postal Service (USPS) www. usps. com l l l Established in 1775 by Ben Franklin Federal Agency Purpose: – – To distribute domestic and international parcels to the public To protect consumers against mail fraud and scams

United States Department of Agriculture (USDA) www. usda. gov l l l Federal Agency Established in 1862 by Abraham Lincoln Purpose: – – – Ensures product safety for meat, poultry, dairy and agricultural products-fruits, vegetables Research and regulate production & processing of fresh foods Stewardship of national forests and rangelands Research in human nutrition & new crop technologies Lead anti-hunger effort with “STAMP OUT HUNGER IN THE US”- Food stamps, WIC, school lunch programs

Attorney General (AG) l The attorney general – – – l l Protects citizens from fraud and criminal acts Stop actions of individuals or corporations by injunctions, cease and desist orders Files criminal actions/lawsuits against violators of legal statutes Government’s lawyer for the people AG for each state and the federal government

Office of the Attorney General www. usdoj. gov l l l Created by Judiciary Act of 1789 Evolved into the head of the Department of Justice and chief law enforcement officer of the Federal Government Who is the NC Attorney General? www. ncdoj. gov l Who is the US Attorney General? www. usdoj. gov

Public Utilities Commission l l l Regulates prices and production of natural gas and electricity a governing body that regulates the rates and services of a public utility. (natural gas, electricity) may be owned by the consumers that it serves OR may be a stockholder owned utility either publicly traded on a stock exchange (DUKE POWER)

Licensing l Why require licenses? – – – l Professional licensures: – – – l Nurses, doctors, medical personnel Realtors, insurance agents, stock brokers, attorneys Plumbers, electricians, contractors Other licenses: – l Prove knowledge of subject area Prove identity Raise revenues ($) Hunting, drivers, pets, vehicle tags, open retail business, passports, marriage ? Can you think of others?

Weights and Measures l Standardized measurements – – l Food products-prepackaged or fresh – l l l Pounds, Ounces, Miles, Feet, Inches Grams, Liters, Kilometers, Meters Steak at $10 per pound…I want accurate weight! Vehicles-fuel pumps, air pumps, pressure, speed Hospitals-input, output, pharmacies, medicines ? Can you think of other places that standardized weights and measure are important?

National Highway Traffic Safety Administration l l l Division of Department of Transportation (DOT) Regulate highway safety standards Research fuel consumption (estimated mpgmiles per gallon) and ways to save fuel Investigate consumer complaints Research on ways to increase highway safety

Better Business Bureau (BBB) l l l Established in 1912 Non-governmental agency with both state and federal levels Purpose: – – To accept consumer complaints about business dealings To keep records available to public To inform the public about unfair trade practices and issues to remedy problems or fulfill promises for a product or service being questioned

Consumer Reports Magazine www. consumerreports. org l l l Established as Consumer’s Union in 1954 Expert, independent, non-profit, nongovernmental periodical Purpose: – – – To research products for safety and quality To inform the public about safety and quality issues for products available to the public To provide access through the magazine and online to inform the public

Consumer Reports ® l l Consumer. Reports. org and Consumer Reports ® published by Consumers Union Mission: – – To work for a fair, just and safe marketplace for all consumers To empower all consumers to protect themselves by making good purchasing decisions

Consumer Federation of America (CFA) www. consumerfed. org l l l Founded in 1968 Part of the “consumer movement” Purpose: – – l l To advance the consumer interests through research, education and advocacy To scrutinize business practices, products and services To raise awareness through the news media To defend the interests of the public at large Associated with Ralph Nader Headquartered in Washington, DC with state and local affiliates

Ralph Nader “Father of the Consumer Movement” l l Graduate of Princeton Law Became consumer advocate in 1963 due to concern for public welfare Wrote book- Unsafe at Any Speed in 1965 about the Chevrolet Corvair that led to the passage of national auto safety standards Used “crash dummies”

Consumer Movement Issues l “Nader’s Raiders” were instrumental in establishing: – – l Freedom of Information Act (1966) OSHA (1970) EPA (1970) CPSC (1972) Publicly and actively addressed environmental and health issues such as : – oil pipeline safety, baby foods, insecticides, mercury poisoning, pension reform, lead paint, coal mine safety, nuclear radiation, meat processing

Actual Instructions to Consumers: Warning on a Korean kitchen knife: “Keep out of children” What should the warning be? On a package of peanuts given to US Air passengers. “ Instructions: Open package, eat nuts. ” Why do you think the package has this warning?

QUOTE- POLLUTION "It isn't pollution that's harming the environment. It's the impurities in our air and water that are doing it. " l Dan Quayle

Dilbert Ethics l l l http: //www. youtube. com/watch? v=0 WTklt. Rfp h. M&safety_mode=true&persist_safety_mode =1&safe=active http: //www. youtube. com/watch? feature=fvwp &v=ds 1 Nn. DC 18_4&NR=1&safety_mode=tru e&persist_safety_mode=1&safe=active http: //www. youtube. com/watch? v=TBct 38 Y 2 f 3 g&feature=related