Business & Personal Finance

CONSUMER RESPONSIBILITIES

The marketplace is full of deceptive and misleading promotions that induce consumers to buy goods and services of inferior

quality or things they do not really need or want.

Deception

Occurs when false or misleading claims are

made about the quality, the price, or the purpose of a particular product.

PREVENTION is still the best

safeguard against financial misfortune.

Fraudulent and Deceptive Marketing Practices

•An illegal technique in which a seller advertises a product with the intention of persuading consumers to buy a more expensive product.

Bait and Switch

•A merchant advertises a big sale but keeps the items at regular price or makes the price tags look like a price reduction.

Fake Sales

•Advertising a service at an incredibly low price to lure customers and then attempt to persuade them that they need additional services.

Low-Balling

•Mostly multilevel marketing plans that promise distributors commissions from their own sales and those of other distributors they recruit.

Pyramid Schemes

•Refers to any method used by experienced con artists to convince vulnerable people to invest in phony investments, swampland real estate, or other swindles.

Pigeon Drop

•Telephone or door-to-door solicitations made by people who claim to represent well-known companies or charities.

Fraudulent Representatio

n

•Deceptive advertising for expensive “miracle” pills, creams and devices to enhance a consumers health and beauty.

Health and Medical

Product Frauds

•A lengthy paid TV advertisement that includes testimonials, product demonstrations, and presentation of product features.

Infomercials

•False advertisements

•Fake websites

Internet Fraud

•“free” prize

•Give credit card number

Telemarketing Fraud

Being a Responsible Consumer

Identify Deceptive Practices

Shop Smart

Online Shopping

Stay Informed

Seek Redress

Shop Smart

Shop at several storesBe aware of pricesUnderstand sale

terminologyAvoid impulse buyingPlan you purchasesCompute unit prices

Read Labels

Check containers carefullyRead contracts

Keep receipts and warranties

Compute total costAsk for references

Be loyalCheck up on businesses

Wait a day for major purchases

Online ShoppingShop at secure websitesCheck the website addressResearch the website before you orderRead the websites privacy and security

policiesShop safelyShare only the essentials when you orderPrint and keep the confirmation orderKnow shipping and return policiesUse common sense

Stay InformedBe familiar with sources of informationRead warranties and guaranteesRead and understand care instructionsAnalyze advertisementsKnow consumer protections lawsInform consumer protections agencies of

fraudulent or unsafe products or services.Keep good records or complaints,

defective products, actions taken, etc.

Seek Redress

Take the product back to the store where you bought it.

Calmly explain the problem to the salesperson.

Stay firm but not angry Say that you are dissatisfied and explain why

If you are not satisfied with the managers remedy, put your complaint in writing to the store’s owner or headquarters.

A remedy to a problem

Send photocopies of evidenceSales receiptsWarranties

If you are still dissatisfied with the result, file a complaint with the appropriate government agency for consumer protections.

Finally, you may need to seek legal recourse.