MGMT 3880 Ch14-18

Law/Courts

people sue when they are injured by a product.

Consumerism

consumers act to protect their own interests.

Government Regulation

the government regulates product safety and protects consumer privacy.

Many companies recognize that providing customers with _____________ and _____________ is an effective, as well as ethical business strategy.

excellent service and product quality

Twenty-one thousand __________ poured into WEN Hair Care from extremely upset users, and others expressed their frustrations in online forums.

complaints

Department of Justice

-Fair competition -Consumer civil rights

Major Rights of Employees

To organize and bargain collectively To a safe and healthy workplace To due process on the job To fair and decent wages To privacy To blow the whistle and free speech

What did WEN's ingredients cause?

itching, rash, hair loss, and even total baldness.

The government can protect consumers through the regulation of

product safety, quality, data privacy, and fair dealing.

National Transportation Safety Board

airline safety

Federal Trade Commission responsibilities

-Competitive pricing -Deceptive trade practices -Packaging and labeling -Consumer credit disclosure and reporting -Online privacy

Industry "Self-Regulation"

Businesses and industries protect their customers through product recalls, quality programs, and voluntary codes

Consumer Financial Protection Bureau

Fairness and transparency in consumer financial products and services

Department of Agriculture

Safety of meat and poultry.

4 methods of protecting consumers

1. Consumerism 2. Government Regulation 3. Law/Courts 4. Industry "self regulation"

Consumer Product Safety Commission

-Safety standards for consumer products -Flammable fabrics, hazardous substances, poison prevention packaging

Chaz Dean's WEN brought in how much in its first year of sales?

100 million dollars

Eventually, the company settled, agreeing to pay customers ______________, although it insisted its products were safe and denied any link between WEN and hair loss. WEN began mailing out checks to its aggrieved customers in 2018—but continued to sell the product line.

$26 million

One reason so many consumers were exposed to a potentially harmful product is that the government has limited authority to ___________ beauty and personal care products.

regulate

Government agencies serve as ___________________ for consumers, supplementing the actions taken by consumers to protect themselves through self- advocacy and use of the courts and by the actions of socially responsible corporations.

watchdogs

Safeguarding consumers while continuing to supply them with the goods and services they want, at the prices they want, is a prime social responsibility of

business

5 core consumer rights

1. The right to be informed: to be protected against fraudulent, deceitful, or grossly mis- leading information, advertising, and labeling, and to be given the facts to make an informed purchasing decision. 2. The right to safety: to be protected against the marketing of goods that are hazardous to health or life. 3. The right to choose: to be assured, wherever possible, access to a variety of products and services at competitive prices; and in those industries in which competition is not workable and government regulation is substituted, to be assured satisfactory quality and service at fair prices. 4. The right to be heard: to be assured that consumer interests will receive full and sympathetic consideration in the formulation of government policy and fair and expeditious treatment in the courts. 5. The right to privacy: to be assured that information disclosed during a commercial transaction or while using social media or searching online—such as health conditions, financial status, or identity—is not shared with others unless authorized.

Food and Drug Administration (FDA)

-Safety, effectiveness, and labeling of drugs, foods, food additives, cosmetics, and medical devices -Standards for radiation exposure -Toxic chemicals research

National Highway Traffic Safety Administration (Transportation Department)

-Motor vehicle safety standards -Automobile fuel economy standards -National uniform speed limit -Consumer safeguards for altered odometers