Becoming a Smart Consumer

Smart Consumers

• Think about whether they need a product, whether they can afford it and how they can purchase it carefully

• Teenagers are often targeted by advertisers because they spend over $200 billion each year.

• http://www.youtube.com/watch?v=NlHUz99l-eo

Emotional Ads

• Association: Products will associate you with popular ideas or symbols

• Bandwagon: Everyone else is using the product.

• Celebrity Appeal: Athletes and movie stars advertise the product.

• Claims of authorities: Experts recommend the product.

• http://www.youtube.com/watch?v=Auqp28Bk4RI

• http://www.youtube.com/watch?v=buDWcDsR3rs

• http://www.youtube.com/watch?v=CcWnfduAS_E

Consumer Protection Laws

• Laws prevent false advertising, unfair pricing and mislabeling

Consumer Product Safety Act

• Allows the government to ban, seize or prevent the sale of harmful products.

Nutrition Labeling and Education Act

• Federal government required most food manufacturers to list fats and calories, so most people would understand.

Consumer Lawsuits!

• Remedy: Government actions that make up for the harm to the consumer

• Expectation Damages: Difference between the value that would be expected if the breaching party had fulfilled it’s promise.

• Cease and Desist Order: A government agency can require a business to stop a forbidden practice

• Consent Decrees: Voluntary agreements to end a practice that is claimed to be illegal

• Rescission: Ask the court to cancel a contract

Court Options• Criminal Cases: Sometimes

sellers actions are considered crimes– Criminal Fraud: a salesperson

knowingly misstates or misrepresents an important fact with intent to defraud

• Civil Court: Lawsuits involving large amounts of money (More than $5,000)

• Small Claims Court: Inexpensive, quick and no attorney required. (All cases are decided by judges)– Modeling Agency Scam

Before a Purchase

• Comparison Shopping: Compare prices and products

• Each seller will have different return policies, installation fees etc.

• Read the warranty• Read before signing a

contract

Better Business Bureau

• Provides information about different sellers and collects reviews from other consumers– http://easternnc.bbb.org

/consumers

After the purchase-Direct Action!• Inspect the product

immediately after the purchase

• Read and follow any directions provide

• Contact the seller first with any problems or defects– If there is no response, you

may write directly to the President of the company

• To find the manufacturer use the Thomas Registry of American Manufacturers.

Consumer Agencies & Groups

• Consumer Federation of America

• Consumers Union• Safe Kids Worldwide• Better Business Bureau• National Association of

Attorneys General• Federal Trade Commission• Food and Drug Administration• Consumer Product Safety

Commission

• U.S. Postal Service• Federal Communications

Commission• National Highway Traffic

Safety Administration• Federal Transit Administration• Federal Railroad

Administration• Federal Aviation

Administration