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Government and Consumer Protection

Government and Consumer Protection. Chapter 3.2 Page 90. The Rise of the Consumer Movement. In the late 1700s states enforced weights and measurement standards In 1887 the Interstate Commerce Act was enacted to regulate railroads In the early 1900s Consumerism began as a grass-roots movement

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Government and Consumer Protection

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  1. Government and Consumer Protection Chapter 3.2 Page 90

  2. The Rise of the Consumer Movement • In the late 1700s states enforced weights and measurement standards • In 1887 the Interstate Commerce Act was enacted to regulate railroads • In the early 1900s Consumerism began as a grass-roots movement • Consumerism grew during the Depression in the 1930s and then exploded in the 1960s

  3. The Rise of the Consumer Movement • A Growing Concern • 200 years ago the products were simple • Today we buy products we don’t understand • Foods we eat today are frozen, packaged, and treated with preservatives • A Growing Awareness • Books published in the 1960s brought consumer and environmental awareness • Silent Spring by Rachel Carson • Unsafe at Any Speed by Ralph Nader • The Consumer Movement • Seeks to protect consumers by requiring • Honest advertising • Product warranties • Improved safety standards

  4. Government Protection Federal Trade Commission (1914) – • Most important federal consume protection agency • Protects against unfair or deceptive business practices such as misleading information in advertisements or on labels. • When this agency finds an ad that is deceptive it issues a cease-and-desist order. • http://www.ftc.gov/ • 1-877-FTC-HELP (1-877-382-4357)

  5. Government Protection Consumer Product Safety Commission(1972) • Protects consumers from dangerous products • First agency to have power over ALL products • Provides data about products to consumers. • http://www.cpsc.gov/ • 800-638-2772

  6. Government Protection Environmental Protection Agency (1970) • Enforces laws that protect the environment • Regulates disposal of hazardous waste by businesses • Set standards for air quality • http://www.epa.gov/ • 202-272-0167

  7. Government Protection State and Local Protection • Protect consumers in local situations • Usually part of the attorney general’s office • http://www.illinoisattorneygeneral.gov/ • http://www.illinoisattorneygeneral.gov/about/hotlines.html

  8. Warranties • Warranty – a company’s promise that the product will meet specific standards over a given time period. • Magnuson-Moss Warranty Act (1975) • Specifies how a warranty is written.

  9. Types of Warranties • Full warranty • A very specific written guarantee. • Promises repair or replacement at no cost for a specific period of time. • Must also explain how to file a claim. • Limited warranty • Like a full warranty except with specific limitations • Implied warranty • An unwritten guarantee that the product is of sufficient quality to fulfill the purpose for which it was designed.

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