Consumer Protection

(noun)

Often also referred to as the consumerists movement or consumer activism. Seeks to protect and inform consumers by requiring such practices as honest packaging and advertising, product guarantees, and improved safety standards.

Related Terms

Examples of Consumer Protection in the following topics:

  • Basic Consumer Rights

    • Basic consumer rights ensure a level of protection for consumers owed by a supplier of goods or services.
    • That's where consumer protection comes in.
    • Consumer protection consists of laws and organizations designed to ensure the rights of consumers, as well as fair trade competition and the free flow of truthful information in the marketplace.
    • Organizations that promote consumer protection include government organizations, individuals as consumer activism, and self-regulating business organizations, such as consumer protection agencies and organizations, the Federal Trade Commission, the Better Business Bureaus, etc.
    • Consumer interests can also be protected by promoting competition in the markets, which directly and indirectly serve consumers, consistent with economic efficiency.

  • Psychology of Purchasing

    • The color of a store logo can have great implications on brand recognition, and strong brand recognition increases consumer confidence.
    • Sometimes, the term "consumerism" is also used to refer to the consumerists movement, consumer protection or consumer activism, which seeks to protect and inform consumers by requiring such practices as honest packaging and advertising, product guarantees, and improved safety standards.
    • In an abstract sense, it is the belief that the free choice of consumers should dictate the economic structure of a society (cf.
    • The term "consumerism" was first used in 1915 to refer to "advocacy of the rights and interests of consumers" (Oxford English Dictionary) but in this article the term "consumerism" refers to the sense first used in 1960, "emphasis on or preoccupation with the acquisition of consumer goods" (Oxford English Dictionary).

  • The Federal Deposit Insurance Corporation (FDIC)

    • Curry (Comptroller of the Currency), and Richard Cordray (Director, Consumer Financial Protection Bureau).
    • The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system by insuring deposits, examining and supervising financial institutions for safety and soundness and consumer protection, and managing receiverships.
    • United States banks and credit unions are closely regulated and supervised to ensure that consumer money is safe.

  • Forces in Consumerism

    • While the term "consumerism" is also used to refer to the consumerists movement, consumer protection or consumer activism, the focus of this section relates to the first definition.
    • Businesses have realized that wealthy consumers are the most attractive targets of marketing.
    • A consumer can have the instant gratification of purchasing an expensive item to improve social status.
    • Consumers are becoming more and more aware of the environmental and social implications of their day-to-day consumer decisions and are therefore beginning to make purchasing decisions based on environmental and ethical implications.
    • Conspicuous consumption is when goods are consumed to enhance one's social status.

  • The Argument Against Barriers

    • Protection of import-competing industries with tariffs, quotas, and non-tariff barriers can lead to an over-allocation of the nation's scarce resources in the protected sectors and an under-allocation of resources in the unprotected tradeable goods industries.
    • Clearly, the exporting sector must lose as the protected import-competing activities gain.
    • But, more importantly, from this perspective the overall economy that consumed the imported goods must also lose, because the more efficient production process–international trade–cannot be used to the optimal degree, and, thereby, will have generally increased the price and reduced the array of goods available to the consumer.

  • Packaging and Labeling

    • The packaging of perfumes, for instance, attempts to appeal to the sensibilities of its target consumer.
    • Physical protection: The objects enclosed in the package may require protection from, among other things, mechanical shock, vibration, electrostatic discharge, compression, temperature, etc.
    • Barrier protection: A barrier from oxygen, water vapor, dust, etc., is often required.
    • For consumer packaging, symbols exist for product certifications, trademarks, and proof of purchase.
    • Some requirements and symbols exist to communicate aspects of consumer use and safety.

  • Introduction to minimizing packaging

    • The purpose of packaging is to protect a product and keep it fresh.
    • Additional benefits include enhanced attractiveness and protection from tampering.

  • Obtaining Credit

    • Types of credit include: bank credit, consumer credit, public credit, and investment credit.
    • A credit default swap represents the price at which two parties exchange this risk – the protection "seller" takes the risk of default of the credit in return for a payment, commonly denoted in basis points (one basis point is 1/100 of a percent) of the notional amount to be referenced, while the protection "buyer" pays this premium and in the case of default of the underlying (a loan, bond or other receivable), delivers this receivable to the protection seller and receives from the seller the par amount (that is, is made whole)
    • The other factor in determining whether a lender will provide a consumer credit or a loan is dependent on income.
    • The higher the income, all other things being equal, the more credit the consumer can access.
    • Describe the concept of credit and how consumers can obtain in for transaction purposes

  • The Benefits of Mixed Economies

    • A mixed economy allows private participation in production while ensuring that society is protected from the full swings of the market.
    • The government has also helped nurture new industries and has played a role in protecting American companies from competition abroad.
    • The advantage of this type of market is that it allows competition between producers with regulations in place to protect society as a whole.
    • Overall, businesses, as well as consumers, in mixed economies have freedoms that are important to both.
    • Consumers also have a choice in what they want to buy.

  • Security risks and internet risks

    • For example, your customer database and customer profitability analyses should be protected as you would not want such information to fall into the hands of a competitor as the result of actions taken by a disloyal employee.
    • If you have a website, you will need to be sure that it is adequately protected from both internal and external threats.
    • For example, institutions offering informational websites need to be aware of the various consumer compliance regulations that may apply to the products and services advertised online.
    • Companies and some individuals traditionally have relied on physical security such as locks and safes to protect their vital business information now face a more insidious virtual threat from cyber-criminals who use the Internet to carry out their attacks without ever setting foot in an establishment or someone's home.
    • Security measures should protect the site from defacement and malicious code.