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This 3 page Class Notes was uploaded by Jocelyn Norfleet on Tuesday September 29, 2015. The Class Notes belongs to FCS 103 at Illinois State University taught by Donald Meyer in Fall 2015. Since its upload, it has received 21 views.
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Date Created: 09/29/15
Management For Consumers FCS 103 Chapter 5 Protection for the Consumer Historv of Consumer Protection 0 Market place regulation insure market functionality 0 Uniform standards set upweights and measurements 0 Quality regulation 0 Examples Ancient Greece adding water to wine Colonial America our shipped to Europe 0 Enforcement of the rules next challenge 0 Court involvement Government agency Creation Major Legislation see Table 51 for more complete list 1906 Pure Food and Drug Act meat inspection Act 191411938 federal trade commission Act 193039s Food Drug Cosmetics replaced 1906 Wool 195039s ammable Fabrics Fur Products Textile Fibers Q39s Truth in lending Child protectionloys Trafficmotor vehicles Hazardous Substances cigarette Labeling Product Labels 0 E39s credit Report egual Credit Debt Collection Public Cigarette Consumer product DoorDoor Sales warranty Q s Counterfeit Device Home equity Car Restraint Safe toy Used car funeral Home 39s Truth in Savings clean air Act Dietary Supplements Food label Advertising to Children Limits Antitrust Laws 0 Laws to prevent business monopolies late 180039s Sherman antitrust1890 Price quot xingquot illegal Previously was quotcommon lawquot unwritten laws governing people s rightsduties most current laws had their start as quotcommon lawquot from EnglandUS except Louisiana Birth of Consumer Protection quotMuckrakersquot of early 190039s politicians writers journalists others 0 led to wagezhour laws women39sminors protection early CP laws 0 quotThe iunglequot Upton Sinclair led to meat laws 0 Protection increased each decade 0 19651975 twice as many laws passed as from previous 90 years 0 Ralph Nader Consumer activist quotUnsafe at Any Speedquot book led to auto safety standards 0 Until 196039s it was mostly quotcaveat emptor quotLet the Buyer Bewarequot Kennedy Administration New laws based on 4 fundamental consumer rights Right to safety Right to be choose 0 Right to informed Right to be heard Since the Kennedy Plan Others 0 Right to a decent environment 0 Right to consumer education 0 Right to reasonable quotredressquot for physical damages 0 Consumer Redress Satisfaction damages suffered use of productservice protection after the fact Reagan Presidency Shift to Less regulation Give businesses more of a free hand 0 Budget reduction to agencies involved Addressed growing concerns of quotgovernment intrustionquot No President has dared to add quotResbonsibilities of Consumerquot 0 Responsibility to give correct information Loan applications car trading 0 Responsibility to report defective goods Increase awareness problems preventedothers 0 Responsibility to report quotwrongsquot Make government aware of possible problems Responsibility to be quotlawfulquot when protesting to not wrongfully attack businessproduct Responsibility to accept consequences of decisionSomeone else39s fault IF your bad judgment Government Coordination Agencies commonly created later merged into a more coordinated government approach Federal Trade Commission Since 1914 3 Bureaus 0 Bureau of consumer protection Cease and Desist Order discussed earlier nes 0 Bureau of competition Antitrust laws 0 Bureau of economics Generally quotstudiesquot regulations consumers economy Consumer Product Safetv Commission Since 1972 wwwcbscoov Regulates potentially hazardous products 0 Sets safety standards for products Bans manufacturesale of products 0 Uses hospital emergency room data Other Consumer Protectors 0 Federal food and drug Administration securities exchange commission investments 0 State Level lL attorney general Of ce Lisa Madigan 0 Court System small claims Court lease problems product warranty 0 Federal quotclass actionquot effort group is assembled all similarly wronged le suit Courtroom Solutions plaintiff person who les the complaint Defendant Person complained against Litigants the two parties above involved in a court process 0 Filing Fees Court Costs Legal Fees optiona Some states limit small claims amounts 0 O Case may be referred to civil court court where attorney required May win the case quotrightquot to collect not guarantee May proceed thru quotappealsquot higher courts Private Sector Consumer Protection 0 Consumers Union wwwconsumerreportsorg 0 Sometimes better known for magazine published 0 Over 3 million quotmembersquot subscribernews stand sales No advertising 0 Consumers Research Publishes consumer research Magazine Product Testing Groups ASA American standards association BBB better business bureaus Media Role UL underwriters laboratories Industry NADA National Automobile Dealers Association MACAP Major Appliance Cons Action Panel 0 Major Corporations consumer relation sections Warranties MagnusonMoss Act 1975 closed many loonholes in warrantiesthat existed o gt15 value simpe complete conspicuous information name address description how to le 0 Manufacturers cannot specify that warranty only good certain brands Full warranty if it meets all federal warranty standards