CONSUMER RIGHTS AND RESPONSIBILITIES General Financial Literacy Jessica

CONSUMER RIGHTS AND RESPONSIBILITIES General Financial Literacy – Jessica Cox

LEARNING OBJECTIVE v. Explain the purposes and features of consumer protection laws. v. Identify federal and state entities that exist to protect consumers from forms of fraud and abuse.

SOURCES OF INFORMATION v Consider sources of information from: • • • Family and Friends Advertising Sales and informational brochures Catalogues Magazine/newspapers Consumer/product testing organizations

GUIDELINES FOR CONSUMERS v. Think about what you need before you buy. (Think about specific features and requirements that are important to you. ) v. Compare stores v. Compare brands v. Check for any extra charges

GUIDELINES FOR CONSUMERS v. Read and understand the warranty. v. Read the contract terms carefully. v. Read and follow the use and care guidelines. v. Keep all sales receipts, warranties, and instructions.

GUIDELINES FOR CONSUMERS v. Understand the store’s refund or exchange policy. v. Buy within your budget. v. Check your bill for accuracy. v. Exercise the right to protest.

CONSUMER RIGHTS AND RESPONSIBILITIES In 1962 President Kennedy presented four basic consumer rights in a message to Congress. These four basic rights have been a basis for government action and legislation aimed at protecting consumer interests. Along with each right, the consumer has a certain responsibility to act within the bounds of that right.

CONSUMER RIGHTS AND RESPONSIBILITIES Rights To Safety To be Informed To Choose To be Heard Responsibilities To use products safely To see information and use it to make decisions To choose goods and services carefully To speak up and let likes and dislikes be known.

THE RIGHT TO BE SAFE The Right: The Responsibility: v Government protection v To use products safely. v Food and Drug v Read information about Administration (FDA) the product v Consumer Product Safety v Use care booklets Commission (CPSC)

THE RIGHT TO BE INFORMED The Right: The Responsibility: v Protection against false v To seek information and misleading information. use it to make decisions v Choose appropriately

THE RIGHT TO BE INFORMED Much of the responsibility here falls on the consumer. It is up to the consumer to seek information and use it to make wise decisions. Consumers need to understand that a claim that sounds too good to be true, probably is. Also, to remember that nothing is free; somehow it will be paid for, by you, the consumer.

THE RIGHT TO CHOOSE The Right: The Responsibility: v A variety of products v Choose goods and v Competitive prices services carefully v No monopolies v Shop a variety of places v Use consumer magazines

THE RIGHT TO CHOOSE v Along with this right, the consumer has the responsibility to choose goods and services carefully. v Consumers should shop around and give their business to the stores that are willing to provide the best quality at the lowest price. v It is also important for consumers to support reputable businesses. In that way, an establishment with bad business tactics would be forced to change their tactics or discontinue doing business.

THE RIGHT TO BE HEARD The Right: The Responsibility: v Complain v To speak up and let likes v BBB and dislikes be known v Consumer Protection v Complaint letters Agency v Support reputable businesses

THE RIGHT TO BE HEARD v When a product or service is not satisfactory, the consumer has the right to complain. v In the majority of cases the seller or the manufacturer can correct the problem. Many companies have a consumer complaint department established for the very purpose of satisfying customers. v If a complaint is not settled at this level, the consumer can move on to higher management for additional help.

CONSUMER COMPLAINTS

CONSUMER COMPLAINTS v. It is imperative whenever a consumer complains that the complaint be done promptly. v. It is also important that the complaint be directed to the appropriate person or the person with the authority to handle the situation. v. It is senseless to complain to a salesclerk over company policy because the salesclerk has no more control over the company policy than the consumer does.

CONSUMER COMPLAINTS v When writing a complaint letter, type it, if possible. v If it is handwritten, make sure that it is neat and easy to read. v It is not in your best interest to write an angry, sarcastic, or threatening letter. –don’t v Most likely, the person reading your letter was not responsible for your problem, but does have authority to deal with it.

COMPLAINT LETTER v Include your name, address, home and work telephone numbers and account number where applicable. • (Many complaint letters have been written that a company would like to deal with, but the consumer has left no address or phone number to enable the company to locate them. If you want your letter to be answered, you must provide them with the means to do it. ) v The name of the person(s) you are writing to, their title, the company name and address. • (As you decide to whom to send your complaint, be sure that the person has the necessary authority to address your concerns. )

COMPLAINT LETTER v Important facts about the purchase. The date and place of the purchase and all product information such as model or serial number, size, color, and any other important information. • (Keep your letter brief and to the point. Make sure that all important facts concerning your purchase are included. Be sure to include all necessary information about the product you purchased. ) v If you are writing to complain about a service, describe the service which you received. • (If you are writing to complain about a service you received, describe the service in detail and include the name of the person who performed the service. )

COMPLAINT LETTER v Clarify the subject of the complaint. Clearly describe the problem. • (Be very specific in describing the problem. How was the product defective, was there a problem in billing, conduct of personnel, etc. ) v State your expectations. What do you want done about the problem and how long are you willing to wait to have it resolved? • (What will it take to make you happy? Be reasonable in your expectations. State exactly what you want done about the problem and how long you are willing to wait to have it resolved. )

COMPLAINT LETTER v Include copies of all important documents: bills, sales receipts, etc. • (Be sure to include copies of all documents regarding the problem. Do not send any original documents, only copies of the original. Keep a copy of all letters to and from the company. Whenever copies of documents are being included with the complaint letter, be sure to mention it in the letter. )

COMPLAINT LETTERS v Sometimes results from a complaint letter do not come quickly. Be persistent, continue writing two, three, or four times if necessary to get the results that you want. v If you find that you have directed the letter to someone who seems to be unable to assist you, then redirect the letter to someone else who can better assist you.