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.

  • Avoiding Potential Fraud

    • Consumer education, web security tactics, and government legislation are measures used to protect consumers from potential fraud.
    • In addition to phishing and illegal hacking, online consumers can also fall victim to purchase frauds, car theft (via websites such AutoTrader), real estate fraud (via websites such as Craigslist), illegal wire transfers, online auctions, retail schemes and call tag scams.
    • Consumers are repeatedly warned to be cautious when donating computers or cell phones and other digital devices to unknown organizations.
    • Online merchants such as PayPal often provide security tips to help consumers protect their personal information.
    • Give examples of online fraudulent techniques, and the consumer tools used to fight them

  • Consumer Interest Groups

    • Consumer Interest Groups focus on the issues and interests of consumers .
    • Consumer Interest Groups can be considered public-interest groups since their work benefits consumers rather than providing exclusive economic benefits to a closed set of members.
    • In these ways Consumer Interest Groups protect and represent consumers.
    • Two examples of consumer groups concerned with a broad range of consumer goods are the Better Business Bureau (BBB) and the Consumer Union, who publishes the Consumer Reports.
    • Consumer Interest Groups can also be single-issue interests groups.

  • Whistleblower Protection

    • Whistle-blower protection provides safeguards against retaliation for those who report suspected legal or ethical violations.
    • In the United States several protections are in place for whistle-blowers.
    • The Whistleblower Protection Act safeguards government employees from management retaliation.
    • Securities whistle-blowers are provided expanded incentives and protection by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
    • Outline the methods with which the U.S. government seeks to protect whistle-blowers to maintain an equitable workplace

  • 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.

  • Social Behavior of Consumers

    • Observing and understanding how consumers behave and interact with each other has led to the introduction of new semantic analysis technologies allowing companies to monitor consumer buying patterns based on shared and posted content.
    • Research has shown that consumer behavior is difficult to predict, even for experts in marketing communications.
    • Brands commonly use behavioral targeting techniques to market to consumers based on their online behavior.
    • However, when behavioral targeting is done without the knowledge of users, it may be considered a breach of browser security and even illegal depending on country privacy, data protection and consumer protection laws.
    • Describe how social media aids the study and measurement of consumer behavior

  • Consumer Privacy Issues

    • Consumer privacy concerns date back to the first commercial couriers and bankers who were obligated to take strong measures to protect customer privacy to maintain competitiveness in the market.
    • Nevertheless, consumer privacy issues abound over both legal and illegal data collection practices on the web.
    • Typically, malware is difficult to remove or uninstall, making it even more difficult for less computer-savvy users to protect themselves from these programs.
    • Supreme Court has declared that online speech is entitled to the same constitutional protections as traditional speech offline.
    • Explain how digital technologies expose organizations and consumers to privacy issues

  • Consumer Products

    • A consumer product is any tangible product for sale that is used by a person or household for non-business purposes.
    • Examples of consumer products are music players, TVs, smart phones, designer clothing, children's toys, and handbags.
    • To determine whether an item is a consumer product requires a factual finding, on a case-by-case basis.
    • These products may fall under the purview of agencies such as the US Food and Drug Administration, the US Bureau of Alcohol, Tobacco, Firearms and Explosives, the US Department of Agriculture, the US Department of Transportation, the US Environment Protection Agency, the US Federal Aviation Administration, and the US Coast Guard.
    • The production and sale of consumer goods is an important sector of US GDP and creating employment.

  • Tariffs

    • Tariffs are taxes levied on goods entering or exiting a country, and have consequences for both domestic consumers and producers.
    • Protective tariffs: Tariffs levied in order to reduce foreign imports of a product and to protect domestic industries.
    • In contrast, because of the higher prices, domestic consumers experience a loss in consumer surplus; consumer surplus shrinks from the area above Pw to the area above Pt (it shrinks by the areas A, B, C, and D).
    • In this example, domestic producers and the government both gain from the import tariff, and domestic consumers lose.
    • This benefits domestic producers by increasing producer surplus, but domestic consumers see a small consumer surplus.

  • 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.