Chapter 2 Slides- The Consumer Movement

1990s Major Consumer Legislation

1. Clean Air Act. It updates the 1970 act and establishes new pollution limits and standards for automobile, power plants, and cancer-causing substance emissions. 2. Children's Advertising Act. It directs the Federal Communication Commission (FCC) to limit TV advertising directed to children. 3.Truth in Savings Act. It requires that financial institutions report annual percentage yield (APY) in the same way. 4. Dietary Supplement Health and Education Act. It requires manufactures to provide product safety information to the FDA. 5. Fair Credit Reporting Act (Amended). It increases access to credit. 6. The Digital Millennium Copyright Act. It adapted U.S. legislation to the World Intellectual Property Organization (WIPO). Copyright laws cover physical copies, broadcasting, books, songs, and films distributed online.

1972 Consumer Legislation

1. Consumer Product Safety Act. It establishes the Product Safety Commission; regulates hazard products especially at home including baby toys, play equipment, and household products. Products are to be reviewed continuously. 2. Odometer Act. A used-cars' odometer cannot be rolled back or disconnected. 3. Water Pollution Control Act. It requires to make major waterways clean enough for fishing and swimming by 1983.

1970 Consumer Legislation: 4 Acts

1. Public Health Cigarette Smoking Act. It prohibits cigarette advertising on TV and radio. 2. Fair Credit Reporting Act and the Fair Credit Act. They protect consumers' credit reports. 3. Clean Air Act. It authorizes the Environmental Protection Agency (EPA) to establish national air-quality standards. It also requires States to develop plans to reduce pollution emissions by 90% in five years. 4.Bank Secrecy Act. It establishes record keeping and reporting requirements for U.S. banks/federal branches and agencies of foreign banks in the U.S.

1973 and 1974 Consumer Legislation

1.Federal Trade Commission (FTC) Door-to-Door Sales It regulates door-to-door sales contracts.. 2. FTC Rules of Negative Options. It details rules regarding book and record clubs (deceptive advertisement and/or promotion). 1974 1.Real Estate Settlement Procedures Act. It requires the disclosure of home buying costs. 2.Equal Credit Opportunity Act. It prohibits discrimination regarding credit. 3.Fair Credit Billing Act. It protects against billing errors, and establishes procedures for resolving mistakes on credit card bills.

1880s - 1920s' Consumer Movement (A Summary)

1880-1900 The U.S. middle class grew and some enjoyed the availability of fresh products due to the railroad system, more accessible, faster, and reliable transportation, new home appliances, and indoor plumbing and better sanitation. 1891 Upton Sinclair and colleagues formed the 1st Consumer League. 1899 The National Consumers League was established. Its aim was justice in the marketplace and consumer protection. It was the beginning of organized consumer consciousness.

1880s-1920 Major Legislation

1887 Interstate Commerce Act. It empowers states to regulated commerce. 1890 Sherman Anti-Trust Act . It encourages competition by prohibiting monopolies and price fixing. 1906 1. Pure Food and Drug Act. It prohibits adulteration of food and drugs. It requires disclosure of narcotics and alcohol content on patent medicines labels, and forbids manufactures from claiming ingredients not included in the product. 2. The Meat and Inspection Act. It mandates the inspection of meat. Due in part to the G.I Bill, upper mobility became a reality to a segment of the U.S. population. It was the decade of private consumption and capitalism was in full bloom. Enforcement of the Pure Food and Drugs Act was necessary due to the misbranding the use of harmful substance in foods. 1914 The Federal Trade Commission Act (FTC). It enforces antitrust laws by preventing monopolies, and unfair methods of competion, including deceptive advertisement. In 1914, the main "trust industries" were producers of sugar, whisky, matches, and fuel, and they were directly impacted by the antitrust laws.

18802-1920 The Great Depression and Roosevelt

1901- 1929 President Roosevelt enforced the Antitrust Laws to maintain competition so consumers could get fair prices and adequate quantities (1901-1909). World War I ended (1918). The early 1920s brought feelings of hope and prosperity, lavish lifestyles, gambling, and risky investments. On October 1929, the U.S. stock market crashed. It was the beginning of the "great depression".

1880s-1920s Harvey Wiley

1906 Harvey Wiley led the fight for better food quality and safety. He became the symbol of Food and Drug Reform. Reformers addressed two main issues: 1. Fraud (sawdust and chalk as fillers for flour, ground coffee, and mustard), and 2. Poison. The Pure Food and Drug Act became the 1st federal law in U.S. It was enacted to protect consumers.

1880s-1920 The Jungle

1906 The publication of "The Jungle." This novel by Upton Sinclair prompted President Theodore Roosevelt to call for an investigation and signed into law the Meat Inspection Act

1930s - 1950s' Consumer Movement Under President FDR

1933-1945 President Franklin Roosevelt fully employed the government's powers to deal with the U.S. economic depression and brought it under control through the national economic recovery known as the New Deal. He led the Country through World War II.

1930's-1950's Major Consumer Legistlation: Think about fabrics

1938 1. The Federal Food, Drug, and Cosmetics Act. Extended coverage of early act and added cosmetics. It gave federal agencies the power to remove untested products from stores. 2. The Federal Trade Commission Act. It updated the 1914 act and prohibited deceptive trade practices. 1939 The Wool Products Labeling Act. It requires accurate labeling of wool products. 1951 The Fur products labeling act required proper labeling of fur products 1953 The Flammable Fabrics Act; prohibits sale of highly flammable clothes 1957 Poultry Products Inspection Act: Requires inspection of poultry industry and products 1958 Textile Fiber Products Indentification Act: Addressed advertising and labeling of all textile products not covered in the wool and Fur products labeling act

1930's-1950's consumer movement-1940s

1940s As was much of the world, the U.S. was experiencing World War II and its impact. • A segment of the U.S. population had more disposable income but there was scarcity of goods. • The advertising industry gained momentum. • The G.I. Bill was signed in 1944 by President Roosevelt, an unprecedented legislation designed to compensate returning members of the armed services for their efforts in World War II.

1960s Major Consumer Legislation

1960: The Hazardous Substance Labeling Act - requires warning labels on dangerous household products. 1964:Civil Rights Act - aims at ending racial and gender discrimination. It guarantees consumer choice, the "full and equal enjoyment of goods, services, facilities, privileges, advantages, and accommodations of any public place of public accommodations." 1965:Cigarette Labeling Advertisement Act - requires warning labels of possible health effects. 19661.Child Protection and Toy Safety Acts. It bands dangerous toys and requires childproof devices and special labeling. 2. Fair Packaging and Labeling Act, also known as Truth Packaging Act. It requires the weight and content information to be part of the product labels. 3. National Traffic and Motor Vehicle Safety Act. It requires new car dealers to be informed by manufactures of any safety defects found after the manufacture and sale of autos. 1967:Wholesale Meat Act - updates the 1906 legislation and provides for higher standards in slaughterhouses of red- meat animals. 1968;Consumer Credit Protection Act - protects and regulates credit transactions, demands that lenders inform clients of annual interest rates, and limits the practice of garnishing wages.

Other 1970 Consumer Legislation

1975:Magnuson-Moss Warranty Act . It regulates the content of warranties, including full and limited warranties. Warranty information must be provided to the consumer prior of her or his purchase. 1977:Fair Debt Collection Practice Act. It limits debt collectors and their methods, and prohibits abuses like harassment.

1980s Major Consumer Legistlation

1981:Federal Trade Commission Used Car Rule. It requires used-car dealers to disclose information to consumers. 1984:1.Funeral Home Rules. It requires disclosure of prices and services. 2. Counterfeit Access Device and Computer Fraud and Abuse Act. It prohibits counterfeit credit cards and other unauthorized access to credit. 3. Automobile Restraints. It requires all new cars sold after September1, 1990, to have restraints (seat belts). 4. Toy Safety Act. The Consumer Product Safety Commission (CPSC) can more quickly recall hazardous toys and equipment for children 5. Generic Drug Act 1986: Smokeless Tobacco Acr:labeling on smokeless tobacco 1988: Home Equity Loan Act ; full disclousure of loans

1990s Consumer Movement

1990's Consumer Movement (A Summary) President Bill Clinton led the country from 1993 to 2001. During his time in office, country enjoyed low unemployment, affluence, and expansion. The Environment found a defender in the Vice President Al Gore. Popular culture fostered a lifestyle of less consumption, more volunteerism, an outdoors approach to recreation with family and friends. Computers and the internet transformed consumption, and communications.

2000 Major Consumer Legislation

2001:USA Patriotic Act. It requires every bank to adopt a customer identification program. 2010:The Patient Protection and Affordable Health Care Act. It provides for affordability, quality, and availability of private and public health insurance through consumer protections, regulations, subsidies, insurance, exchanges, and other reforms.

Rachel Carson

American biologist, founder of the modern enviornmental movement who exposed other enviornmental pollution problems in her book silent spring.

1930's-1950's Consumer Movement- 1950s

Due in part to the G.I Bill, upper mobility became a reality to a segment of the U.S. population. It was the decade of private consumption and capitalism was in full bloom. Enforcement of the Pure Food and Drugs Act was necessary due to the misbranding the use of harmful substance in foods.

1970s Ralph Nader

During the 1970s Ralph Nader emerged as a consumer Advocate Leader. • His main contributions were as an consumer advocate questioning the power of corporations and making cars safe through his book Unsafe at Any Speed.

1960s consumer movement

In the U.S., the boom of Capitalism during the late 40s and 50s equated consumption of goods with freedom. • The Civil Rights Movement, the Women's Movement, and the Anti-War Movement converged in an era of cultural, social, economic, and political questioning and change. • These movements brought the issues of racism, sexism, and oppression to colleges and universities, the workplace, and executive, legislative, and judicial branches of government. The Environmental Movement also emerged during the 60s. Its main focus was environmental pollution impacting the biological, chemical, and/or physical characteristics of air, soil, and water.

What is the consumer movement?

It is defined as the polices established to regulate products, services, selling, methods and standards of manufacturing, and advertisement in the interest of the consumer/buyer. • Regulations can be voluntary, by industry and companies' initiative or mandatory, due to written laws or statutes. • Services and goods move across geographical borders which require cooperation and agreements among states and countries. • The Consumer Movement is worldwide.

Conspicious Consumption

It occurs when someone pays an extremely high price for a product or service for its prestige value, leading to a higher demand for the product. (Thorstein Veblen).

1970s Consumer Movement

It was a decade with great movement toward the protection of the consumer. • President Richard Nixon led the way to the establishment of small claims courts throughout the country. • President Gerald Ford promoted consumer education. • President Jimmy Cater promoted education and conservation in the usage of energy consumption. He appointed strong consumer advocates to governmental positions.

Pollution

any undesirable change in biological, chemical or physical characteristics of the air, land or water that harms activities, health or survival of living organisms

Depression

characterized as drastic and long lasting decline in the economy, with high unemployment, falling prices and decreasing business activity

What is the objective of the Consumer Movement

• The objective of the consumer movement is to ensure that consumers pay a fair price for safe, effective, environmental sound, and satisfying goods and services.

What is consumption?

People make consumption choices at a particular time based on the information she or he may have at their disposal. • Not all consumption is based on knowledge or reason. Other factors like social status, economic conditions, political shifts, and geographical location come into play.

President Obama

President Barack H. Obama has been leading the country since 2008. • During his administration, the country has been dealing with the worst recession since the Great Depression. • President. Obama's administration waged an economical intervention comparable only to President Franklin Roosevelt's administration during the Great Depression. He signed into law, the Dodd-Frank Wall Street Reform and Consumer Protection Act. It brought the most significant changes to financial regulation in the U.S. since the Great Depression. -President Obama named Mr. Richard Corday as the director of Consumer Financial Protection Bureau. His confirmation was blocked by Congress last December because according to some, the Bureau had too much power and not enough accountability. • President Obama nominated the first woman, Janet L. Yellen to lead the Federal Reserve system (the Fed). She was approved by Congress (2014

2000 Consumer Movement

President George W. Bush led the country from 2001-2009. • During his administration, the Country experienced the most devastating act of terrorism faced by the nation, and the Iraq War was declared and the US entered the war in Afghanistan. • Also business/industry merges increased. This was due in part to a lax of antitrust legislation; deregulation; and smaller companies were easily acquired.

1980s Consumer Movement- What major change occurred

President Ronald Reagan was an advocate of neo-liberal policies and deregulation. • During his two terms presidency, consumer protection regressed, due to the fact that for-profit companies preferred consumer education to consumer legislation. The burden was passed to the consumer. President Reagan was followed by President George W. H. Bush who continued similar consumer protection positions as his predecessor.

Demographic and Consumption Shifts

Prior to 1890 the populations in the United States (Native Americans, settlers, and forced immigrants) were mostly self sufficient people who lived in rural areas. • By 1890 approximately 40% of the population lived in cities and relied on small and big business/companies for basic products like food, soap, textiles. • Dangerous untested products were sold to the public. The threat to public safety was the impetus for consumer protection legislation.