Consumer Protection
Which federal agency protects consumers from unfair or deceptive business practices?
Federal Trade Commission
A commercial says, 'Everyone is buying this!' Which propaganda technique is being used?
Bandwagon
What fraudulent practice uses fake messages or websites to trick people into giving up information?
Phishing
What is a contract?
A legally enforceable agreement between parties that creates obligations.
A customer signs an agreement to pay $600 for a moving service. What is one major customer obligation?
Pay the agreed amount according to the contract.
A consumer wants to report a dangerous product that could injure people. Which organization is the best match?
Consumer Product Safety Commission (CPSC)
A famous athlete promotes a sports drink. Which technique is being used?
Testimonial / celebrity endorsement
What attack can secretly capture payment-card information through a compromised card reader or ATM?
Skimming
What component occurs when one party proposes terms for an agreement?
Offer
A moving company agrees to provide three movers and a truck but never shows up. What contract issue may have occurred?
Breach of contract / failure to perform an obligation.
Which organization provides business ratings and helps consumers evaluate companies?
Better Business Bureau (BBB)
An advertisement uses a phrase such as 'Made for hardworking Americans' to create a positive association. What technique could this represent?
Glittering generalities
Give TWO ways to protect financial information from technology-based attacks.
Examples: strong unique passwords, MFA, avoiding suspicious links, secure websites, updates, account monitoring, and avoiding sensitive transactions on public Wi-Fi.
What component occurs when the other party agrees to the offer's terms?
Acceptance
Daily Double
Set Wager
Why should consumers read cancellation, renewal, fee, and dispute terms before signing?
These terms can create financial obligations or restrictions that are not obvious from the advertised price.
Which federal agency focuses on consumer protection involving financial products and services?
Consumer Financial Protection Bureau (CFPB)
An ad places a product next to images of a happy family to transfer positive feelings to the product. What technique is this?
Transfer
Daily Double
Set wager
A text says, 'Your bank account will be locked in 10 minutes. Click here.' Name TWO warning signs.
Urgency/threat of immediate consequences and a suspicious link or request for sensitive information.
What is consideration, and why is it important?
Consideration is something of value exchanged between parties, such as money, services, or a promise. It is a key element in an enforceable agreement.
A customer and company make a major change to the price and service, but only one side approves it. Why can this create a problem?
The parties may disagree about what was actually agreed to. Major changes should be clearly agreed upon and documented.
Why is contacting the correct consumer-protection organization often more effective than only posting a complaint on social media?
The appropriate organization may document complaints, investigate or enforce applicable rules, and provide a formal path toward resolution.
Explain how advertising can increase demand even when a consumer does not actually need the product.
Advertising can create emotional connections, social pressure, urgency, status appeal, or perceived value that can motivate consumers to buy.
Compare phishing, hacking, and skimming. Give one key difference among them.
Phishing relies on deception; hacking involves unauthorized access to systems/accounts; skimming captures payment information through compromised equipment.
Name FOUR important contract considerations beyond offer, acceptance, and consideration.
Capacity, lawful purpose, clear/definite terms, mutual duties/obligations, and any required legal formalities.
RIGOR: A service advertises $30/month but includes a $75 cancellation fee, automatic renewal, and possible price increases. Is it accurate to evaluate it as simply '$30/month'? Explain.
No. The consumer must consider the full agreement, including fees, renewal terms, future price changes, and other obligations.