Vocab
Consumer
someone who uses goods and services
Food, Drug, and Cosmetic Act
Assures consumers of the safety and purity of food products, drugs, and cosmetics
Food and Drug Administration (FDA)
enforces laws and regulations on the purity, quality, and labeling of food, drugs, and cosmetics
Better Business Bureau
3 major economic roles you play
Consumer, Worker, and Citizen
Consumer Advocates
people or organizations who work on behalf of consumers
Truth in Savings Act
Requires financial institutions to provide figures such as interest rates in standard forms
United States Department of Agriculture (USDA)
inspects and sets standards for meat, poultry, and canned fruits and vegetables
How do identity thieves use your information? (Give me 3)
Open a bank account in your name and write bad checks, they forge checks and drain your bank account, run up charges on your credit card account, open a new credit card account using your name, they run up bills for which you could be responsible
If your identity is stolen (Name the 3 steps)
-File a report with the police
-Notify your bank and credit card companies. Close any accounts that may be tampered with
-Call a major credit reporting agency and ask that they put a fraud alert on your file and that no new accounts be opened without your approval
Cookies
small files that are stored on your computer's hard drive when you visit a site
Fair Credit Opportunity Act
Protects people who apply for credit from discrimination
Federal Consumer Information Center (FCIC)
provides information to consumers on a wide range of topics through low-cost publications, a Web site, and toll-free phone assistance
Right to Service
Consumers have the right to expect convenience, courtesy, and responsiveness from businesses
Effective Consumer Characteristics (Give me 3)
Set goals, Think critically, do their research, manage everyday finances, plan for financial security
Pyramid Scheme
an illegal get-rich-quick plan. each person who participates pays a sum of money to join, then recruits several other people.
Financial Services Modernization Act
Requires financial institutions to notify customers about the kinds of information they collect about them, how that information may be used, and their privacy rights
Federal Trade Commission (FTC)
enforces laws against dishonest advertising. It also helps protect consumer rights in the areas of credit transactions, product labeling, and privacy
Right to redress
Consumers are entitled to swift and fair remedies for wrongs that are done
Legal actions for dispute resolutions (Give me 2)
Small claims court, Lawsuit, Class action suit
Mediation and Arbitration
Mediation: process in which two parties try to resolve a dispute with the help of a neutral third party
Arbitration: procedure in which a neutral person or panel listens to both sides of a dispute, weighs the evidence, and reaches a decision
Textile Fiber Products Identification Act
Requires manufacturers of textiles and fabrics to provide labels listing fiber content and other information
Consumer Product Safety Commission (CPSC)
works to protect the public against unreasonable risks and to develop safety standards for many household products
What year was the Food and Drug Act passed?
1906
Deceptive advertising methods(All 4)
Bait and switch, False promise of free gifts, deceptive pricing, and hidden catches