Chapter 44 Consumer Protection and Product Safety

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Meat and Related Products Safety

 U.S. Department of Agriculture (USDA)  Responsible for regulating meat, poultry, and other food products  Can initiate legal proceedings against violators Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

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Case 44.1: Adulterated Food

 Case  United States of America v. LaGrou Distribution Systems, Incorporated   466 F.3d 585, Web 2006 U.S. App. Lexis 25986 (2006) United States Court of Appeals for the Seventh Circuit  Issue  Has LaGrou knowingly engaged in the improper storage of meat, poultry, and other food products, in violation of federal food safety laws?

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Food, Drugs, and Cosmetics Safety

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Food, Drug, and Cosmetic Act (FDCA):

 Provides the basis for the regulation of much of the testing, manufacture, distribution, and sale of foods, drugs, cosmetics, and medicinal products 

Food and Drug Administration (FDA)

 Federal administrative agency that administers and enforces the FDCA 4 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Regulation of Food

 The FDCA prohibits  shipment, distribution, or sale of adulterated food  false and misleading labeling of food products 

Nutrition Labeling and Education Act (NLEA):

A federal statute that requires food manufacturers to disclose on food labels nutritional information about the food  Requires the disclosure of uniform information about serving sizes and nutrients 5 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Regulation of Drugs

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Drug Amendment to the FDCA

 Empowers the FDA to license new drugs  Manufacturer must provide adequate warnings, directions for use   May revoke approval of previously licensed drugs Prohibits adulterated, misbranded drugs Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

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Regulation of Cosmetics

 FDA requirements for cosmetics:  Proper labeling  Disclosure of ingredients  Display of warnings if carcinogenic   Adulterated or misbranded cosmetics are prohibited FDA may remove from commerce cosmetics that contain unsubstantiated claims Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

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Regulation of Medicinal Devices

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Medicinal Device Amendment:

Gives the FDA authority to regulate medicinal devices, such as heart pacemakers, kidney dialysis machines, defibrillators, surgical equipment, etc.

Mislabeling of medicinal devices is prohibited FDA is empowered to remove “quack” devices from the market 8 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Product and Automobile Safety

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Consumer Product Safety Act (CPSA):

A federal statute that regulates potentially dangerous consumer products and that created the Consumer Product Safety Commission 

Consumer Product Safety Commission (CPSC):

An independent federal administrative agency empowered to  adopt rules and regulations to interpret and enforce the CPSA 9 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Product and Automobile Safety

 conduct research on the safety of consumer products  collect data regarding injuries caused by consumer products  issue product safety standards on consumer products Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

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Medical and Health Care Protection

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Health Care Reform Act:

A 2010 federal statute that  increases the number of persons who have health care insurance in the United States  provides new protections for insured persons from abusive practices of insurance companies Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

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Unfair and Deceptive Practices

 The Federal Trade Commission Act (FTC Act) prohibits unfair and deceptive practices including:  False and deceptive advertising  Bait and switch Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

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False and Deceptive Advertising

 Advertising is false and deceptive under Section 5 of the FTC Act if it  contains misinformation or omits important information that is likely to mislead a “reasonable consumer”  makes an unsubstantiated claim Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

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Bait and Switch

 Seller advertises low-cost merchandise to attract customers  Seller pressures buyers to upgrade    Refuses to show advertised merchandise Discourages employees from selling advertised merchandise Fails to have adequate quantities of advertised merchandise Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

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Door-to-Door Sales

 Many states permit consumers to rescind contracts made with door-to-door sales representatives within a set period after signing the contract  FTC requires salesperson to permit cancellation as specified  Consumer must send required notice of cancellation to seller 15 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Do-Not-Call Registry

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Do-Not-Call Registry:

A register created by federal law on which consumers can place their names and free themselves from most unsolicited commercial telephone calls Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

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Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

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