Consumer Education: Agencies and Protection
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Questions and Answers

The Consumer Product Safety Commission (CPSC) primarily focuses on:

  • Overseeing the safety and efficacy of food, drugs, and cosmetics.
  • Regulating interstate commerce and preventing unfair business practices.
  • Protecting the environment from pollution and hazardous waste.
  • Ensuring the safety of consumer products, including toys, electronics, and household items. (correct)

What is the Food and Drug Administration's (FDA) main responsibility?

  • Regulating workplace safety and health standards nationwide.
  • Ensuring the safety and proper labeling of food, drugs, and cosmetics. (correct)
  • Protecting consumers against fraudulent financial products and investment schemes.
  • Enforcing environmental regulations and protecting natural resources.

The Federal Trade Commission (FTC) primarily aims to:

  • Prevent business monopolies and protect consumers from unfair or deceptive business practices. (correct)
  • Regulate the stock market and protect investors from securities fraud.
  • Establish guidelines for environmental protection and sustainable business practices.
  • Oversee the safety of consumer products and issue recalls when necessary.

Which of the responsibilities below reflects the Environmental Protection Agency's (EPA) main focus?

<p>Protecting human health and the environment by writing and enforcing regulations. (D)</p> Signup and view all the answers

What is the core function of Underwriters Laboratories (UL)?

<p>To test electrical products for safety. (D)</p> Signup and view all the answers

The Better Business Bureau (BBB) is primarily known for:

<p>Serving as a resource for consumers and businesses, promoting trust and ethical business practices. (C)</p> Signup and view all the answers

The Securities and Exchange Commission (SEC) is mainly responsible for:

<p>Regulating securities markets and protecting investors. (B)</p> Signup and view all the answers

A State Attorney General's (SAG) role in consumer protection typically involves:

<p>Enforcing state laws, investigating consumer complaints, and prosecuting businesses engaged in fraud or deceptive practices. (C)</p> Signup and view all the answers

Small Claims Court is designed to:

<p>Resolve disputes involving relatively small amounts of money without extensive legal procedures. (D)</p> Signup and view all the answers

In the context of fraudulent or deceptive practices, 'bait and switch' refers to:

<p>Advertising a product or service at a low price to lure customers in, then attempting to sell them a more expensive item. (B)</p> Signup and view all the answers

Which scenario exemplifies a sophisticated phishing attempt that is most likely to deceive a careful recipient?

<p>An email that perfectly mimics a legitimate banking communication, referencing recent transactions and directing the user to a cloned website that captures credentials. (D)</p> Signup and view all the answers

What is the most effective strategy for mitigating the risk of identity theft when disposing of sensitive personal documents?

<p>Shredding the documents with a cross-cut shredder to render them unreadable. (A)</p> Signup and view all the answers

A consumer purchases a high-end electronic device. Which warranty scenario provides the most comprehensive protection?

<p>An express warranty detailing specific covered components and a repair or replacement guarantee for failures within three years, including accidental damage. (D)</p> Signup and view all the answers

How does an implied warranty inherently protect consumers, even if no explicit warranty is provided?

<p>It guarantees the product meets a basic level of quality and is fit for the purpose for which it is sold. (A)</p> Signup and view all the answers

A consumer is dissatisfied with a service. What is the most strategic first step they should take to resolve the issue?

<p>Contacting the service provider directly to explain the issue and seek a resolution. (B)</p> Signup and view all the answers

A product is sold 'As Is'. What implications does this have for the consumer's warranty rights?

<p>The consumer waives all warranty rights, accepting the product in its current condition with no guarantees. (D)</p> Signup and view all the answers

What is the critical distinction between an express warranty and an implied warranty regarding consumer protection?

<p>An express warranty is a specific guarantee made by the seller, while an implied warranty is a basic assurance required by law that the product is functional. (C)</p> Signup and view all the answers

Considering the limitations of 'small claims courts', what is the most strategic use of this legal avenue for a dissatisfied consumer?

<p>To efficiently resolve straightforward disputes involving relatively small amounts, without incurring high legal costs. (C)</p> Signup and view all the answers

In the context of consumer protection, what is the primary purpose of a warranty?

<p>To offer a guarantee from the manufacturer or seller to repair or replace a product within a specified period. (C)</p> Signup and view all the answers

A consumer is targeted by a pyramid scheme. What defining characteristic most clearly indicates its fraudulent nature?

<p>The emphasis on recruiting new members rather than selling a legitimate product or service to consumers. (D)</p> Signup and view all the answers

Flashcards

CPSC (Consumer Product Safety Commission)

Protects the public from unreasonable risks of injury associated with consumer products.

FDA (Food and Drug Administration)

Regulates food, drugs, and cosmetics.

FTC (Federal Trade Commission)

Prevents business practices that are anticompetitive, deceptive, or unfair to consumers.

EPA (Environmental Protection Agency)

Protects human health and the environment by writing and enforcing regulations.

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UL (Underwriters Laboratories)

Tests samples of electrical products for safety.

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BBB (Better Business Bureau)

A resource for consumers to find businesses they can trust.

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SEC (Securities and Exchange Commission)

Protects investors, maintains fair, orderly, and efficient markets, and facilitates capital formation.

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State Attorney General (SAG)

Enforces state consumer protection laws and can bring lawsuits on behalf of consumers.

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Small Claims Court

A local court that lets you recover money without a huge expense.

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Bait and Switch

Advertising a low-priced item (the bait) to lure customers in, then trying to sell them a higher-priced item (the switch).

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Pyramid Scheme

A fraudulent scheme where people are recruited to make payments to those above them, with the promise of receiving payments when they recruit others.

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Phishing

A type of online fraud where criminals disguise themselves as trustworthy entities to trick individuals into revealing sensitive information.

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Identity Theft

Stealing someone's personal information to commit fraud.

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Warranty

A written guarantee issued to the purchaser of an article by its manufacturer, promising to repair or replace it if necessary within a specified period of time.

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Implied Warranty

A warranty that is not explicitly written but is implied by law; the product should function as expected.

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Express Warranty

A warranty that is clearly stated, either verbally or in writing, regarding the quality or performance of a product.

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"As Is" Warranty

A product bought 'As Is' typically has no warranty; the buyer assumes all risks.

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Steps for Dissatisfaction

  1. Contact the seller; 2. Contact the manufacturer; 3. Contact a consumer agency; 4. Take legal action.
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Study Notes

  • These notes cover consumer education topics, including agency responsibilities, deceptive practices, identity theft protection, warranties, and consumer complaint procedures.

Agency Responsibilities

  • Consumer Product Safety Commission (CPSC): Keeps records of safety, issues recalls, and oversees product safety and standards to protect the public from unreasonable risks of injury or death associated with consumer products.
  • Food and Drug Administration (FDA): Regulates food and medications, with authority to recall food, medicine, and cosmetics to ensure public health and safety.
  • Federal Trade Commission (FTC): Prevents business practices that are anticompetitive, deceptive, or unfair to consumers.
  • Can bring court cases for national deception and is looking at AI use.
  • Environmental Protection Agency (EPA): Establishes and enforces environmental protection standards; Also regulates business and consumption practices in the interest of environmental sustainability.
  • Underwriters Laboratories (UL): Tests model electrical products for safety; Sets standards followed across industry.
  • Better Business Bureau (BBB): Resolves issues for consumers to fulfill responsibilities and foster business.
  • It resolves disputes.
  • Securities and Exchange Commission (SEC): Regulates all fraudulent financial markets.
  • State Attorney General (SAG): Handles consumer issues that the consumer might have with business.
  • Small Claims Court: Allows people to take lawsuits against the other party; Used to settle small disputes.
  • Claims often do not exceed $3,000.

Fraudulent or Deceptive Practices

  • Bait and Switch: Advertising a product/service at a very low price.
  • Refusing to supply items to sell more expensive merchandise.
  • Includes excuses like "Limited time only" or it being out of stock.

Pyramid Scheme

  • Involves people who recruit others who don't recruit, revenue dries.
  • Those that recruit must persuade others to share.
  • Must persuade others what the original seller.
  • Must recruit others to declare faith in the same monetary system.
  • Few those at the top earn returns.

Phishing

  • Present in an email that will first look legitimate, then send you to access your user account details.
  • Done by someone trying to access others' accounts illegally.
  • Often appears on newsletters, sometimes designed to steal money.
  • 10,000 scams might produce 2-3 victims.

Identity Theft Protection

  • Attempt an account.
  • Check out credit reports.
  • Shred names and account numbers.
  • Don't access WIFI while checking data.
  • Use unique passwords and PINs.

Warranty

  • A warranty guarantees satisfaction of purchase on an article by its manufacturer and promises to repair or replace it if necessary within a specific period of time.

Implied vs. Express Warranty

  • Express Warranty: S/No written, and full conditions are covered within the warranty - outside issues only covered.
  • Implied Warranty: Arises when products have issues.

"As Is" Products

  • Products bought "as is" have no warranty.

Steps for Dissatisfaction with a Product/Service

  • Speak
  • Return product
  • Contact a consumer agency.
  • Take legal action.
  • Small claims courts.

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Related Documents

Consumer Rights & Responsibilities Study Guide PDF

Description

Explore consumer education topics: agency responsibilities, deceptive practices, identity theft protection, warranties, and consumer complaint procedures. Learn about the roles of the CPSC, FDA, FTC, and EPA in protecting consumers and the environment. Understand your rights and how to address consumer issues.

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