Consumer Rights

In their role as consumers, ordinary citizens are entitled to the fundamental rights which lie at the heart of national policies.

First, products’ quality should be consistent with their prices and the claims of manufacturers. Warranties and money-back guarantees provide assurances that a product will live up to the claims of the manufacturer. Most warranties are written statements that promise repair, replacement, or a refund if a product fails to perform as the manufacturer said it would for a certain period of time. A money-back guarantee promises a refund of the purchase price if the buyer is not completely satisfied. An implied warranty is an unwritten guarantee that a product is suitable for the purpose for which it has been sold. For example, a hairdrier should dry hair. Only a product sold “as is” has no implied warranty. Such goods include damaged and second-hand items.

Second, consumers’ health and safety are protected against unsafe goods. Only products, which will not endanger health or safety, may be put on the market. This means setting safety requirements providing full information about potential risks, protecting consumers against physical injury.

A number of agencies of the federal government play an important role in ensuring the safety of goods. For example, the Food and Drug Administration (FDA) enforces laws concerning the safety of food, drugs, and cosmetics. The Consumer Product Safety Commission sets safety standards for many household products. The National Highway Traffic Safety Administration sets and enforces safety requirements for automobiles and related products. All such agencies test products and inspect factories. They also investigate consumer complaints and furnish information about product safety. In addition, the agencies can order manufacturers to recall hazardous products.

Certification programs give consumers further information about product safety. For example, Underwriters Laboratories, Inc., a nonprofit organization, sets safety standards for building materials, electric appliances, and other products. It tests products submitted by manufacturers and awards a certifying seal to items that meet its standards.

Consumers can seek compensation in several ways for a loss or injury. For example, a person can sue by means of a product liability suit or a malpractice suit. A product liability suit is brought against a manufacturer or seller for damage or injury that is caused by a product. A malpractice suit is filed against an individual or a company in a service field, such as medicine or dentistry.

Consumers can file individual lawsuits in a regular court, or they can bring their claims to a small-claims court. Most small-claims courts handle consumer complaints involving up to $5,000. If many consumers have the same complaint, they may file their claims in a single lawsuit called a class action suit.

People can also bring their complaints to consumer and business organizations. For example, many business companies finance organizations known as better business bureaus. The bureaus bring consumer complaints to the attention of business firms. Large numbers of companies have special departments that handle consumer problems. In addition, newspapers publish special columns and radio and television stations broadcast programs that tell consumers how to make complaints.

Third, adequate, truthful information about goods or services protects consumers’ economic interests. There is for example a general ban on misleading advertising and unfair terms in contracts with consumers.

Advertising provides a major method by which manufacturers and sellers give information to consumers. The Federal Trade Commission (FTC) regulates advertising and administers several programs that handle deceptive claims. For example, the FTC may order a manufacturer to provide corrective advertising if misleading claims have been made.

The FTC and the state governments fight bait-and-switch selling and other deceptive sales methods. A bait-and-switch advertisement uses a special sale on a product as “bait” to attract customers to the advertiser’s place of business. Salespeople then try to “switch” the customers to a more expensive product.

Various laws protect the consumer’s right to corresponding, veracious information. One of these laws is the Consumer Credit Protection Act of 1968, often called the Truth in Lending Act. It requires sellers to state clearly the charge made for loans and installment purchases and to express the interest rate as an annual rate. Another law affecting information given consumers is the Fair Packaging and Labeling Act of 1966, also known as the Truth in Packaging and Labeling Act. It requires that the package used for a product provide certain information. This information includes the identity of the product, the manufacturer’s name and address, and the net quantity of the contents.

The United States Department of Agriculture requires that the grade of meat and dairy products appear on those items for the benefit of consumers. Many food stores use unit pricing, such as the price per ounce or per gram. This system helps consumers determine the best buy among several products in different sizes of packages. Food manufacturers also inform consumers by freshness labeling, also called open dating. A product is stamped with a date, which is the last day that it should be sold or used to assure quality or freshness.

Consumer organizations contribute much information about products. For example, Consumers’ Research, Inc., and Consumers Union test a wide variety of products and publish the results. Consumers’ Research is financed entirely by consumers who subscribe to its publications, and Consumers Union is supported chiefly by the sale of subscriptions, plus some contributions. Consumer groups also encourage the development of consumer education programs. Such programs emphasize the rights of consumers and provide information about managing money and making wise purchases.

Fourth, consumers have a choice among a variety of products. The government regulates business in order to promote free and fair competition. The Sherman Antitrust Act of 1890 forbids monopolies. The act also prohibits price fixing, a stated or implied agreement by several manufacturers to charge a noncompetitive price for a product they all make. The U.S. Department of Justice and the FTC enforce the Sherman Act. The FTC also enforces the Clayton Antitrust Act of 1914 and the Celler-Kefauver Act of 1950. These laws are designed to prohibit businesses from forming combinations that would reduce competition.

Some supporters of consumerism favor regulation by the FTC of the amount of money that businesses spend for advertising. They argue that small or new companies cannot spend large sums for advertising and thus cannot compete with large or older firms. As a result, businesses with larger budgets have considerable control over the market and the prices that consumers pay.

Then, consumer rights to information and education are among the fundamental rights. Consumers need to be put in a position where they can make an informed choice among goods and services offered. This includes objective information on the features and price of the items available. Consumers also require proper information about their efficient and safe use.

Consumers have the right to redress, i.e. they have the right to receive advice and help when seeking redress for faulty products or for injury or damage resulting from the use of goods and services. There need to be simple, affordable and rapid procedures for settling complaints and claims.

Consumer representation and participation right is included in the list of consumer rights. Representatives of consumers need to be present in decision-taking procedures on issues of concern to them at local, state, national or federal level. At federal level, this covers not only specific consumer issues but also other relevant policy areas like food laws, transport, competition policy, financial services, environment and the like.

In the European Union, for example, the first consumer program adopted in 1975 focused on the practical application of five principles, such as the protection of consumers’ health, safety and economic interests, consumer rights to information, education and the right to redress, consumer representation and participation. As a first result, a number of directives were adopted over the next 10 years covering among other things the safety of cosmetic products, the labelling of foodstuff, misleading advertising, consumer rights in door-step selling, product liability and the provision of consumer credit.

Finally, it is important to remember that consumers have not only rights, they also have certain responsibilities. For example, they must use a product for the purpose intended by the manufacturer, and they should follow the instructions provided with the product. They have a responsibility to the sellers to be fair and honest. A consumer who buys an item of clothing, wears it only to a party, and then returns it is not being fair and honest, as the seller's costs go up, and everyone winds up paying higher prices.

1. What should products’ quality be consistent with? Give your examples.

2. What products may be put on the market? Have you ever purchased unsafe goods?

3. Why is it necessary to receive adequate, veracious information about goods or services? How can consumers be protected against misleading advertising and unfair terms in contracts?

4. Dwell on pros and cons of having a wide variety of products.

5. Comment on other right of consumers.

6. What laws do governments adopt to protect to protect consumer right in different countries?

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Дата добавления: 2014-12-23