Download Federal Income Tax

Chapter #7
Section #7.1
 Describe your rights as set forth in the Consumer Bill
of Rights.
 Describe the protections provided by major federal
consumer protection laws.
 The Consumer Bill of Rights outlines basic rights that
consumers should expect in the marketplace,
including:
 The right to safety.
 The right to be informed.
 The right to choose.
 The right to be heard.
 The right to redress.
 The right to consumer education.
 Some laws set standards for product purity and safety.
 These laws include:
 Food, Drug, and Cosmetic Act of 1938
 Flammable Fabrics Act of 1953
 Flammability:
 The capacity for catching on fire.
 Meat Inspection Laws
 Kefauver-Harris Drug Amendment of 1962
 Generic Drugs:
 Medications with the same composition as the equivalent brand-
name drugs, but they are generally less expensive.
 National Traffic and Motor Vehicle Safety Act of 1966
 Many consumer laws set rules for product labeling.
 These laws include:
 Hazardous Substances Labeling Act of 1960
 Recall:
 A request for consumers to return a defective product to the
manufacturer.
 Cigarette Labeling and Advertising Act of 1965
 Fair Packaging and Labeling Act of 1966
 Permanent Care Labeling Rule of 1972
 Care Labels:
 Give instructions for cleaning, wash and dry temperature, and
other care needed to preserve the product.
 Several consumer protection laws are designed to
protect children from harm.
 These laws include:
 Child Protection and Toy Safety Act of 1966
 Childproof Devices:
 Devices designed to resist tampering by young children.
 Toy Safety Act/ Generic Drug Act (1984)
 Children’s Online Privacy Protection Act of 1998.
 FERPA and HIPAA are laws designed to protect
privacy.
 Family and Educational Rights and Privacy Act (FERPA)
 Health Insurance Portability and Accountability Act
(HIPAA)
Section #7.2
 Identify national sources of consumer information and
assistance.
 List and describe state and local agencies and private
consumer assistance.
 Explain how to contact public officials to express
opinions.
 Department of Agriculture:
 Inspects and grades food.
 Food and Drug Administration:
 Approves new drugs, tests products for safety, and sets labeling guidelines.
 Consumer Product Safety Commission:
 Enforces product standards and bans or recalls hazardous products.
 Federal Communications Commission:
 Regulates communications by radio, television, wire, satellite, and cable.
 Federal Trade Commission:
 Regulates methods of competition, marketing practices, and credit reporting.
 United States Postal Inspection Service:
 Investigates consumer problems pertaining to illegal use of mail.
 Fraud:

The intentional misrepresentation of information with the intent to deceive or mislead.
 Securities and Exchange Commission:
 Requires businesses to disclose certain information for investors to evaluate and
oversees the securities markets.
 Private organizations, such as the Better Business
Bureau, can assist consumers with incidents of
unethical or illegal practices.
 Consumer Advocate:
 A person who actively promotes consumer causes.
 Public officials can also impact consumer protection
laws.
 To inform public officials of a consumer problem, you
can reach them in several ways, including:
 In person
 By phone
 By e-mail
 By letter
 Ryan, J.S. (2006). “Managing your personal finances;
5th ed.” Thomson South-Western; Mason, Ohio.