CH17 CONSUMER PROTECTION

Behavioral Advertingsing

Behavioral Advertising refers to advertising that is targeted to particular customers, based on their observed online behavior. *For example, a shopper might view a dress while browsing online for an outfit for an upcoming event, and then later when checking a news site might see an advertisement for the same dress pop up on her screen.

Summary 5

Business has complained about the number of product liability lawsuits and the high cost of insuring against them. Although consumer groups and trial attorneys have opposed efforts to change product liability laws, modest tort reforms have been legislated.

Summary 3

Consumer protection laws and regulatory agencies attempt to assure that consumers are treated fairly, receive adequate information, are protected against potential hazards, have free choices in the market, and have legal recourse when problems develop.

Deceptive Advertising

Deceptive advertising is illegal in most countries. Manufacturers may not make false or misleading claims about their own product or a competitor's product, withhold relevant information, or create unreasonable expectations.

Strict Liability

In the U.S. the legal system has generally looked favorably on consumer claims. Under the doctrine of strict liability, courts have held that manufacturers are responsible for injuries resulting from use of their products, whether or not the manufacturers were negligent or breached a warranty.

Alternative dispute resolution (ADR)

One approach to setting disagreements between companies and consumers, other than going to court, is alternative dispute resolution. * ADR can take the form of mediation, a voluntary process to settle disputes using a neutral third party, or arbitration, the use of an impartial individual to hear and decide a case outside of the judicial system.

Quality Management

Quality management refers to "all the measures an organization takes to assure quality."

Summary 4

Rapidly evolving information technologies have given new urgency to the issue of consumer privacy. Three approaches to safeguarding online privacy are consumer self-help, industry self-regulation, and protective legislation.

Consumer Privacy

Shoppers have always been concerned that information they reveal in the course of a sales transaction - for example, their credit card or driver's license numbers - might be misused. *In recent years, fast -changing technologies have increasingly enabled businesses to collect, buy, sell, and use vast amounts of personal data bout their customers and potential customers. *The danger is not only that this information might rarely be used fraudulently, but also that its collection represents a violation of privacy and might lead to unanticipated harms.

Summary 6

Socially responsible companies have responded to the consumer movement by giving serious consideration to consumer problems, increasing channels of communication with customers, instituting arbitration procedures to resolve complaints, and recalling defective products. They have also pursued voluntary codes of conduct and quality management in an effort to meet, and even anticipate, consumers' needs.

Consumer affairs officer

The consumer affairs officer typically manages a complex network of contacts with customers. * The contact infrastructure usually includes a website with self-service component; many sites are interactive, allowing customers to post comments or questions that are answered electronically by customer relations staff.

Summary 1

The consumer movement represents an attempt to promote the interests of consumers by balancing the amount of market power held by sellers and buyers.

Summary 2

The five key consumer rights are the rights to safety, to be informed, to choose, to be heard, and to privacy.

Product liability

The term Product liability refers to the legal responsibility of a firm for injuries caused by something it made or sold. *Under laws in the United States and some other countries, consumers have the right to sue and to collect damages if harmed by an unsafe product. * Consumer advocates and trial attorneys have generally supported these legal protections, saying they are necessary both to compensate injured victims and to deter irresponsible behavior by companies in the first place.

Consumer protection laws

are the safeguards provided by the government in protecting consumers. * Taken together, these safeguards reflect the goals of government policymakers and regulators in the context of the five rights of consumers.

Consumer movement

is the organized activities by consumers to safeguard their own rights. It is also called consumerism.

Reasons for the consumer Movement

1. complex products have enormously complicated the choices consumers need to make when they shop. 2. Services, as wells as products, have become more specialized and difficult to judge. 3. When businesses try to sell either products or services through advertising, claims may be inflated or they may appeal to emotions. 4. Technology has permitted businesses to learn more than ever about their customers-potentially violating their privacy. 5. Some Businesses have ignored product safety.

The rights of Consumers

1.The right to be informed 2. The right to safety 3.The right to choose 4.The right to be heard 5. The right to privacy

Product recall

A product recall occurs when a company, either voluntarily or under an agreement with a government agency, takes back all items found to be dangerously defective. *Sometimes these products are in th hands of consumers; at other times they may be in the factory, in wholesale warehouses, or on the shelves of retail stores.