Consumer Protection
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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
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
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
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