Consumer Economics Chapter 4 Consumer Protection and Law

Learning Objectives Identify the major consumer complaints Explain consumer responsibilities Discuss consumer service problems

Introduction The responsibilities of consumers Instances of fraud Consumer protection

Top Consumer Fraud Complaints 1. Identity theft (18 percent) 2. Debt Collection (10 percent)

Consumer Responsibilities A consumers may be referred to as a client, patient, expert by

Customer Service Customer service includes the entire shopping experience Consumer complaints Corporate Reputation

Steps to Take Before Buying Gather information from many sources Find out about return

Steps to Follow After Buying Consumer redress Ways to complain effectively The manufacturer Self-regulatory

Going to the Law Civil vs. criminal cases Consumer law Licensing boards Warranties and

Consumer Legal Terms • Action – a judicial proceeding; a lawsuit contested in court

Chapter Summary Top ten consumer fraud complaints Consumer responsibilities Steps to follow before and

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Learning Objectives Identify the major consumer complaints Explain consumer responsibilities Discuss consumer service problems Describe the steps to follow before buying List the steps to follow to complain effectively Describe the steps to follow before buying Discuss how small claims courts work

Introduction The responsibilities of consumers Instances of fraud Consumer protection

Top Consumer Fraud Complaints 1. Identity theft (18 percent) 2. Debt Collection (10 percent) 3. Banks and lenders (6 percent) 4. Shop-at-home and catalog sales (6 percent) 5. Prizes, sweepstakes, and lotteries (5 percent) 6. Imposter Scams (4 percent) 7. Internet scams (4 percent) 8. Auto-related complaints (4 percent) 9. Telephone and mobile services (4 percent) 10. Credit cards (3 percent)

Consumer Responsibilities A consumers may be referred to as a client, patient, expert by experience, customer, or user Bottom Line: Use common sense, be aware of surroundings, business dealings, and potential victimization.

Customer Service Customer service includes the entire shopping experience Consumer complaints Corporate Reputation

Steps to Take Before Buying Gather information from many sources Find out about return and refund policies Get receipts in writing; keep credit card receipts Be suspicious of sales person tactics

Steps to Follow After Buying Consumer redress Ways to complain effectively The manufacturer Self-regulatory organizations Government consumer protection agencies Small claims courts or civil courts

Going to the Law Civil vs. criminal cases Consumer law Licensing boards Warranties and guarantees Contracts

Consumer Legal Terms • Action – a judicial proceeding; a lawsuit contested in court • Adversary proceeding - a legal procedure involving opposing parties, such as a plaintiff and a defendant • Adversary system – a system with a trial where the truth will emerge (the system we are used to in the United States) • Answer – the defendant’s written response to the plaintiff • Breach of contract – the failure (without legal excuse) to fulfill any promise the is part of a contract

Chapter Summary Top ten consumer fraud complaints Consumer responsibilities Steps to follow before and after buying Consumer complaints