Federal Law & the Customer Bill of Rights
- When consumers purchase products, they have the rights against defective products. Consumers are also protected against misleading advertising from businesses. Manufacturers are supposed to clearly label the contents of their products such as food items in order to allow a customer to make an informed decision when buying. Nonfood items are supposed to carry warnings if they are likely to cause injury if mishandled. Most companies have documents, or Consumer Bill of Rights, in which they articulate what a customer should expect when dealing with them. Such documents are also a guidance to employees' behavior when dealing with consumers to avoid infringing on their rights.
- Up to the 1950s, consumer protection was limited. In response to a consumerist movement in that decade to give consumers more rights, the product-liability concept was established. President John F. Kennedy in his speech to Congress in 1962 summed up the basic consumer rights. This was followed by a number of consumer protection laws during the 1960s and 1970s, such as the Cigarette Labeling Act of 1965 and the Fair Labeling Act in 1966.
In 1967, the Wholesome Meat Act was passed; this law, which addressed packaging, mandated that the contents of a product and any dangers associated with it be disclosed. There are now six consumer rights that businesses have to take into account when dealing with consumers. - The Consumer Bill of Rights covers the entire economic spectrum. From the time the product-liability concept came into effect, several other pieces of legislation aimed at protecting consumers have been passed. In the financial sector, for instance, under the Truth in Lending Act of 1968, consumers are entitled to a full disclosure of the total cost of a loan. A customer needs to know how much he will pay in interest rates and other costs of a loan.
- The Magnuson-Moss Warranty Act, passed in 1975, guarantees the performance of a product in accordance to the expected standards. If you purchase a laptop, for instance, the manufacturer guarantees free repairs to your computer if it starts malfunctioning within a stipulated period of time.
- There are times when a consumer will have conflicting feelings when he purchases something. If he feels he made a wrong decision, he has the right to return the merchandise and seek full refund within a specified period of time.
If persuaded to purchase a product from a sales representative directly, a consumer has the right to change his mind. At a regional level, this type of law, known as a "cooling off" law, applies in 40 states as of 2010. - It is not uncommon for manufacturers to recall their products if they pose a danger to consumers. The Consumer Product Safety Commission was established by the federal government in 1972 to make sure consumers were protected against products other than vehicles that were likely to cause injury to them. The CPSC ensures that labels are put on products to warn customers if there is any danger in using a product. Customers must also be notified immediately of a defective item.
- In a free-market economy, consumers have the right to choose from a variety of products. When businesses compete, it is the consumer who benefits because prices are kept low. Under the right to be heard, consumers are allowed to air their concerns about a product. A customer also has the right to education on products or services and the right to compensation when he receives poor service or product.
