Consumer Protection Agencies INTRODUCTION TO BUSINESS MARKETING Consumer

Consumer Protection Agencies INTRODUCTION TO BUSINESS & MARKETING

Consumer Protection Agencies Find solutions for consumer problems Most consumers solve problem themselves: Contact the seller customer service Contact seller headquarter Contact consumer organizations End all – file claim in small claims court

Types of Consumer Protection Agencies Nongovernmental Consumer Organizations: Government Consumer Organizations: The Consumer Federation of The Federal Trade Commission America National Consumers League Consumers Union Major Appliance Consumer Action Program The Media 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 consumers Consumer 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 consumers Lets members know they can support legislation to help the public

National Consumers League Nations oldest nonprofit consumer group Membership open to anyone Provides gov’t agencies, businesses, other organizations with consumer point of view National Fraud Information Center Monitors Internet to alert consumers of fraud

Consumers Union Nonprofit organization that publishes Consumer Reports magazine Researchers test products & report findings Testifies before gov’t agencies on consumer concerns

Major Appliance Consumer Action Program Association of Home Appliance Manufactures Most major appliance dealers are members MACAP 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 division In some states, Attorney General’s office handles consumer affairs Set up to protect consumers Publish materials to help consumers with buying decisions and problems The 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 companies Seeks to ensure nations markets function competitively Works to eliminate unfair or deceptive practices

US Department of Agriculture USDA inspects foods and grades them Grade labels: indicate the level of quality of foods EXAMPLE: 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 Transportation Agency sets and enforces safety standards for motor vehicles Can 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 pricing Public 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 your choice of one product : 1. 2. 3. What impact does this recall have on the company? What should consumers do if they own this product? How will this recall impact consumer perception of the company? Research the recall of your choice of one additional product: 1. 2. 3. What impact does this recall have on the company? What should consumers do if they own this product? How will this recall impact consumer perception of the company? Students are to visit http: //www. distraction. gov/downloads/pdfs/schoolpresentation. pdf and complete the following: 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?