CONS- Chapter 5

The most reliable consumer publication is what?

"Consumer Reports"

What are the 5 divisions of the FTC?

-Advertising Practices. • Privacy and Identity Protection. • Financial Practices. • Enforcement. -Consumer and Business Education

The DOJ antitrust division prosecutes serious and willful violations of antitrust laws by filing criminal suits. The antitrust division enforces what U.S. acts?

-The Sherman Anti-trust Act. • The Clayton Act. • The Wilson Tariff Act.

Consumer groups are concerned with 3 issues, what are they?

1.Do consumers have full knowledge of what they are buying? 2. Are products safe? 3. Are products environmentally sound?

There are 5 types of mergers

A horizontal merger • A vertical merger • An extension merger • A product extension merger • A conglomerate merger

Licensing

A license may be required to work as an interior designer, a nail technician, or a barber.

Pricing

A maximum price may be set for a product or services.

ome examples of deregulated industries

Airlines. Banking. Cable television. Electricity. Telephone.

A conglomerate merger

Combines companies with none of the above relationships or similarities

"Consumer Reports" published by the CU, is an example of what?

Consumer Reports is an example of a nongovernmental, consumer-oriented publication

CPSC main responsibilities

Develop voluntary standards with industry. • Issue and enforce mandatory standards for consumer products. • Obtain the recall of products or arrange for their repair. • Conduct research on potential product hazards. • Inform and educate consumers.

Rules and regulations relevant to consumer economics do the following:

Educate consumers. Protect consumers. Regulate sellers. Discourage unfair, deceptive, or dangerous business practices. Change the relationship between buyers and sellers, making certain practices or products illegal.

True/False: ALL agencies test products.

False. Some agencies test products and others don't.

true/false: The media are an unimportant element in our information economy?

False: media is very important in our information economy

The CFA focuses most of its advocacy (public support for a cause regarding policy) on several areas. Some of these areas include?

Financial services. Utilities. Product safety. Transportation. Health care.Food safety.

Subsidies

Government can become involved in regulating supplies of imports, such as oil, and provide incentives or subsidies for growing specific crops or developing certain businesses.

The Securities and Exchange Commission lookouts for fraud and deception in the securities market and provides _______________.

Investor education

What does the NHTSA do?

It develops and enforces minimum performance standards on motor vehicles, including bicycles, motorcycles, automobiles, trucks, buses, mopeds, and recreational vehicles, and all accessories for these vehicles.

FDA regulates what?

It regulates the following: • Food (foodborne illness, nutrition information, dietary supplements). • Drugs (prescription, over-the-counter, and generic drugs). • Medical devices (pacemakers, contact lenses, hearing aids). • Biologics (vaccines and blood products). • Animal feed and drugs. • Cosmetics (safety and labeling). • Radiation-emitting products (cell phones, lasers, microwaves).

The Consumer Product Safety Commission (CPSC) was created when + why?

It was created in 1972. Its mission is to protect consumers against injuries and death associated with consumer products.

The Food and Drug Administration (FDA) was created when + why?

It was established in 1906. Its mission is to promote and protect the public health by helping safe and effective products reach the market in a timely manner, and by monitoring products for continued safety after they are in use.

The Securities and Exchange Commission (SEC) was created when and why?

It was established in 1934 to regulate the commerce in bonds, stocks, and other securities. Its primary mission is to protect investors and maintain the integrity of the securities (stocks and bonds) markets.

Mission + goals of the FTC?

Its mission is to eliminate fraud, violations of consumer privacy, and deceptive marketing practices.

USDA mission/ goals?

Its mission is to provide leadership on food, agriculture, natural resources, and related issues based on sound public policy, the best available science, and efficient management.

The main areas of regulation include:

Pricing, liscensing, standard setting, subsidies, privacy

The federal governemnt is empowered to act on behalf of consumers in a number of ways. What are examples of some of these ways?

Rules and Regulations

Standard setting

Safety standards can be set in factories, as can food standards regarding how much beef should be in a can of beef noodle soup.

State and Local Consumer Protection provide consumer protection through;

Several agencies, commissions, boards, attorney generals' offices, departments of insurance, and offices of consumer affairs.

Privacy

Standards regarding privacy in financial transactions can be determined.

The CFA was established when and is what?

The CFA was founded in 1968 and is a large nationally recognized advocacy organization working to advance pro consumer initiatives

CPSC stands for

The Consumer Product Safety Commission

FTC stands for

The Federal Trade Commission

The federal consumer protection agencies most involved with consumer protection are?

The Federal Trade Commission (FTC). • The Consumer Product Safety Commission (CPSC). • The Food and Drug Administration (FDA). • The U.S. Department of Agriculture (USDA). • The Department of Justice (DOJ) • The Securities and Exchange Commission (SEC). • • The National Highway Traffic Safety Administration (NHTSA).

FDA stands for

The Food and Drug Administration (FDA).

NHTSA

The National Highway Traffic Safety Administration

SEC stands for

The Securities and Exchange Commission

USDA stands for

The U.S. Department of Agriculture

CFA stands for?

The consumer federation of America

Federal Consumer Protection Agencies functions?

The federal government acts on behalf of the consumer through a number of regulations, acts, rules, and legislation. These are enacted by several agencies.

The Department of Justice (DOJ) was created when and why?

The part of the DOJ most connected to consumer economics is the Antitrust Division. It promotes and protects the competitive process through the enforcement of antitrust laws. These address price- fixing conspiracies; corporate mergers; and predatory acts designed aimed to achieve or maintain monopoly control.

Special-interest groups

These are two or more persons who have a common interest and seek to influence government policy and enforcement.These groups influence the government through lobbying.

True/False: ALL agencies are involved in providing consumer information to the public through their Web sites.

True

True/False: Some agencies have more investigation and enforcment powers than others.

True

true/false: Government is one of the main gatherers, sorters, producers, and monitors of information and produces many useful pubications including 200+ publications found in the "consumer catalog" by the FCIC.

True

true/false: in some cases, states handle the same sort of complaints and cases as the federal government.

True

Ways to Contact Elected Officials. There are 6 steps

Use your own paper and your own words; write clearly and concisely. • Focus on one subject per letter or e-mail. • Refer to specific legislation by name and/or number. • Request a specific action, such as voting in a particular way, or suggest public hearings. • If you work or live in the elected official's district, say so. • Insulting words or lack of courtesy will not work; polite wording will get more of the kind of attention and action you want.

Do different agencies cooperate with each other ever?

Yes and may each have a say in a particular part of a case or investigation

USDA department is organized in 7 areas

arm and Foreign Agricultural Services. • Food, Nutrition, and Consumer Services. • Food Safety. • Marketing and Regulatory Programs. • Natural Resources and Environment. • Research, Education, and Economics. • Rural Development.

Who Influences the Government?

businesses, organizations, and government

A product extension merger

combines companies selling different but related products in the same market.

An extension merger

combines companies selling the same product in different markets.

horizontal merger

combines direct competitors in the same product lines and markets.

A vertical merger

combines supplier and company or customer and company.

Department of Agriculture (USDA) was created when and why?

he USDA began in 1862 under President Abraham Lincoln when 48 percent of the people were farmers who needed good seeds and information to grow their crops. Presently, less than 2 percent of the population live in farms.

The Federal Consumer Information Center (FCIC) was established to?

help federal agencies and departments develop, promote, and distribute useful consumer information to the public.

The National Highway Traffic Safety Administration (NH TSA) goal?

reduce highway deaths, injuries, and property losses.

What is a "Merge"?

refers to a combining of two or more companies into one single entity.

Deregulation

removes or reduces government intervention and allows the free market to operate

Lobbyists

represent special interest groups

When was the FTC Federal Trade Commission created when + why?

t was created in 1914 to enforce anti-trust laws and unfair methods of competition.

DOJ stands for

the Department of Justice

Nongovernmental Pro-consumer Groups

thousands of non-governmental pro-consumer groups ranging from centers for economic justice to legal aid societies

The mission of the media is to do what?

to Inform

The Federal Consumer Information Center (FCIC) also informs consumers _____.

who to contact for adress issues, problems, and or concerns.