25-1 chapter 44 consumer protection and product safety
TRANSCRIPT
25-1
Chapter 44
Consumer Protection and Product Safety
Meat and Related Products Safety
U.S. Department of Agriculture (USDA) Responsible for regulating meat, poultry, and other
food products Can initiate legal proceedings against violators
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Case 44.1: Adulterated Food
Case United States of America v. LaGrou Distribution
Systems, Incorporated 466 F.3d 585, Web 2006 U.S. App. Lexis 25986 (2006) United States Court of Appeals for the Seventh Circuit
Issue Has LaGrou knowingly engaged in the improper
storage of meat, poultry, and other food products, in violation of federal food safety laws?
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Food, Drugs, and Cosmetics Safety
Food, Drug, and Cosmetic Act (FDCA): Provides the basis for the regulation of much of the
testing, manufacture, distribution, and sale of foods, drugs, cosmetics, and medicinal products
Food and Drug Administration (FDA) Federal administrative agency that administers and
enforces the FDCA
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Regulation of Food
The FDCA prohibits shipment, distribution, or sale of adulterated food false and misleading labeling of food products
Nutrition Labeling and Education Act (NLEA): A federal statute that requires food manufacturers to disclose on food labels nutritional information about the food Requires the disclosure of uniform information
about serving sizes and nutrients
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Regulation of Drugs
Drug Amendment to the FDCA Empowers the FDA to license new drugs Manufacturer must provide adequate warnings,
directions for use May revoke approval of previously licensed drugs Prohibits adulterated, misbranded drugs
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Regulation of Cosmetics
FDA requirements for cosmetics: Proper labeling Disclosure of ingredients Display of warnings if carcinogenic
Adulterated or misbranded cosmetics are prohibited FDA may remove from commerce cosmetics that
contain unsubstantiated claims
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Regulation of Medicinal Devices
Medicinal Device Amendment: Gives the FDA authority to regulate medicinal devices, such as heart pacemakers, kidney dialysis machines, defibrillators, surgical equipment, etc.
Mislabeling of medicinal devices is prohibited FDA is empowered to remove “quack” devices from
the market
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Product and Automobile Safety
Consumer Product Safety Act (CPSA): A federal statute that regulates potentially dangerous consumer products and that created the Consumer Product Safety Commission
Consumer Product Safety Commission (CPSC): An independent federal administrative agency empowered to adopt rules and regulations to interpret and enforce
the CPSA
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Product and Automobile Safety
conduct research on the safety of consumer products
collect data regarding injuries caused by consumer products
issue product safety standards on consumer products
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Medical and Health Care Protection
Health Care Reform Act: A 2010 federal statute that increases the number of persons who have health
care insurance in the United States provides new protections for insured persons from
abusive practices of insurance companies
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Unfair and Deceptive Practices
The Federal Trade Commission Act (FTC Act) prohibits unfair and deceptive practices including: False and deceptive advertising Bait and switch
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False and Deceptive Advertising
Advertising is false and deceptive under Section 5 of the FTC Act if it contains misinformation or omits important
information that is likely to mislead a “reasonable consumer”
makes an unsubstantiated claim
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Bait and Switch
Seller advertises low-cost merchandise to attract customers
Seller pressures buyers to upgrade Refuses to show advertised merchandise Discourages employees from selling advertised
merchandise Fails to have adequate quantities of advertised
merchandise
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Door-to-Door Sales
Many states permit consumers to rescind contracts made with door-to-door sales representatives within a set period after signing the contract FTC requires salesperson to permit cancellation as
specified Consumer must send required notice of cancellation
to seller
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Do-Not-Call Registry
Do-Not-Call Registry: A register created by federal law on which consumers can place their names and free themselves from most unsolicited commercial telephone calls
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