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Chapter 3
Your Purchasing Power
What Are Consumer Rights?
Many laws protect consumers.
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Consumer Bill of Rights
Airline Passenger Rights
Consumer Technology Bill of Rights
Patients’ Bill of Rights
Consumer Protection Laws
o Examples: Food, Drug, and Cosmetic Act;
Hazardous Substances Act; Cigarette Labeling
and Advertising Act; Nutrition Labeling and
Education Act; FERPA; HIPAA
3-4 Consumer Rights and Responsibilities
Slide 2
Sources of Consumer Protection
• Federal agencies
o Examples: USDA, FDA,
CPSC, FCC, FTC, FAA,
SEC
• State and local
assistance
• Private Organizations
o Examples: BBB, National
Consumers League,
Consumers Union
3-4 Consumer Rights and Responsibilities
Slide 3
How Are Consumers Defrauded?
Deception involves false or misleading
claims made about a product.
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Bait and switch
Fake sales
Low-balling
Pyramid schemes
Ponzi schemes
Pigeon drop
Infomercials
3-4 Consumer Rights and Responsibilities
Slide 4
How Are Consumers Defrauded?
http://www.youtube.com/watch?v=9EQPrF
R9KRo
3-4 Consumer Rights and Responsibilities
Slide 5
How Can Consumers Protect
Themselves from Fraud?
• Shop smart
• Be aware of prices
• Understand sale
terminology
• Compute unit
prices
• Read labels
• Check packages
carefully
• Read contracts
• Keep receipts and
warranties
• Compute total cost
• Research
businesses
3-4 Consumer Rights and Responsibilities
Slide 6