1.05: A Responsible Consumer 1

​Section Objectives:

After you have completed this section, you will be able to:

• Examine consumer protections provided by the federal government.

• Identify federal agencies responsible for protecting consumers.

• Research state and local consumer action groups and explain their roles.

• Evaluate consumer problems and identify the best recourse for the consumer.

• Identify the elements of an effective consumer complaint.

• Identify and evaluate sources of information for consumers when making buying decisions.

• Examine common financial scams and identify ways to avoid being a victim.

• Apply effective consumer strategies to make buying decisions.

​A Responsible Consumer Part 2

Let's talk consumer protection laws:
These laws protect buyers from sellers
How? By making it illegal for businesses to engage in unfair business practices, spread untruthful and inaccurate information, or sell dangerous products.

​Consumer Protection Laws
These are needed for 2 major reasons:

1. Some businesses engage in fraud (intentionally tricking someone to make a financial gain.)

2. Some companies will sell products they know are dangerous or unhealthy just to make a profit.

Federal Government Agencies to protect consumers:

Consumer Product Safety Commission: Protects public from injury /death from consumer products.
Federal Trade Commission: Works to prevent fraud, deception, unfair business practices, such as scams.
Food & Drug Administration (FDA): Regulates/tests foods and drugs for safety.
Internet Crime Complaint Center: Run by FBI. Protects consumers against cyber crime.

Federal Consumer Protection Agencies

There are many government agencies for help:

• Environmental Protection Agency (EPA): Promotes public health by protecting air, water, and soil from harmful pollution.

• Department of Justice (DOJ): Ensures that laws passed by the legislative branch are upheld.

• Securities and Exchange Commission (SEC): Enforce the federal securities laws and regulate the securities industry, the nation's stock and options exchanges, and other electronic securities markets.

• Federal Communications Commission (FCC): Regulates interstate and international communications.

• National Highway Traffic Safety Administration (NHTSA): Is responsible for reducing deaths, injuries and economic losses resulting from motor vehicle crashes.

Effective Consumer Complaint letters:

​When you have a complaint write to the company first (before contacting a govt. agency

• Authoritative letters: Clearly present problem.

• Friendly tone.

• Be clear and specific: What do you want them to do?

• Be concise and brief.

Consumer Scams:

A type of financial fraud.

Avoid being a victim by knowing what to watch out for.

Most common scam: Identity theft

Think before you buy!

Compulsive shopping is another trap that consumers may fall into. Without a budget and savings plan, consumers may find themselves unable to pay for the things they need because they splurged on nonessential items.

Let's go through the buying process.

Congratulations!
You have learned:

• Federal consumer protections

• How to write an effective complaint

• Scams

• The consumer buying process

You're ready...

Live session password for the week of Sept. 8th
Password: fraud

Take the 1.05 Quiz Friday Sept. 12th