Transcript Consumer Protection

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Warm up
In 3-5 words, define each of the following:
1.
Phishing
2.
Skimming
3.
Pyramid scheme
4.
Ponzi scheme
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Answer the following question:
1.
How can you protect yourself from the many types of fraud
we learned about last class?
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5.6 Consumer Protection
Objective: Demonstrate how to be a
responsible consumer in the 21st century
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I. Consumer Protection & Rights
 A.
Consumer: someone who buys a product or
service
 B. Consumer
Protection: laws and organizations
designed to ensure the rights of a consumer
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C. Rights of the Consumer
 You
have a right to…
 1. Safety: protection
from
goods/ services that are
hazardous to health
 2. Be
Informed: protection
from misleading information,
advertising or labeling
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 3. Choose: providing
a selection
of goods/services at fair prices
 4. Be
Heard: Provides you the
opportunity to be a voice in the
creation & development of
goods/services
 5. Redress: Request
money or
other benefits as compensation
for a company’s mistake
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D. Consumer Credit Protection
Organizations, laws
and programs
designed to help the consumer:
make smart credit decisions and
to overcome financial problems
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II. Consumer Protection Agencies

A. There are many federal agencies that help consumers file
complaints against businesses, be smarter shoppers and
understand credit
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B. Better Business Bureau (BBB) – use this agency to learn
about a business and how they treat consumers

1. Sets standards for ethical business behaviors

2. Helps consumers identify trustworthy businesses and those
that aren’t
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3. Evaluates advertisements to ensure we can trust what
companies say
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 C. Federal Trade
commission
(FTC) –designed to protect
consumers and promote competition
1. Organizes National Do Not Call
List –registering your name to be
removed from telemarketers call
lists
 2. The Fair Credit Reporting Act –
provides that you must be given
with a copy of you credit report if
requested
 3. Prevents anti-business practices
like monopolies (when a business
has complete control of a
good/service)
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D. Securities and Exchange Commission (SEC) –protects
investors who are purchasing stocks, bonds and other
financial assets
 1. requires companies to provide consumer with
reports of how the company is doing
 2. Maintains a database EDGAR (Electronic Data
Gathering, Analysis and Retrieval system)that allows
investors to see the information the SEC collects
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III. How to Protect Yourself
A. Register
on Do Not Call List
B. Read
the Fine Print of any
offer/deal/ad
C. Find Trusted
Companies through
the BBB and other sources
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D. For more information check
out…
 1. North
American Securities
Administrative Association – protects
investors in the US, Canada and Mexico
 2. FBI
Common Fraud Schemes –
provides consumers with a list of fraudulent
businesses practices
 3. Internet
Crime Complaint Center –
where consumers submit complaints
regarding internet scams