Consumer Affairs

Objective: describe the ways in which consumer can protect him/herself

Consumers can protect themselves by being well informed and knowing their right and responsibilities.

 Being well informed

Consumers should make sure that they are well informed in areas of consumers affairs.

 Consumer Exploitation in relation to goods and services

In order to avoid exploitation (the action or fact of treating someone unfairly in order to
benefit from their work) the consumer must be first be aware of devices used by some
unscrupulous suppliers of goods and services. A few of these are listed below:
 Black-Marketing-This is a situation where goods with ceiling prices establish by law are
sold above the controlled price
 Hoarding-This practice is prevalent in cases where goods are in shortly supply. Sellers
sometimes take the scarce items off the shelves and sell to consumers only if their total
purchases are above a stipulated amount. In some instances, artificial shortages are
created by withholding the goods from the market thereby causing prices to rise
 Bait-and-switch-A good may be advertise at an attractively low price. When consumers
enquire for the product, they are informed that all existing stocks were sold. At this
stage the prospective buyer is persuaded to purchase a substitute at a higher price.
 Loss-Leaders-Sometimes one or two items in a firm may be sold below the cost price.
The intention is to give consumers the impression that the outlet sells all goods at low
prices and thereby encourage shoppers to make all their purchase at one-stop shop.
However, the other items are highly over-price.
 False ‘sales’-offers of reduced prices on goods are strong inducements to consumers to
purchase items they don’t need. However, it is important for shoppers to compare the
‘sale’ prices before making purchases, as sometimes the sale price offered at an outlet
may be higher than the price before the sale was called.
 False claims on advertisements-We often hear of medications which claims to remove
pimples overnight, detergents which ’eat’ dirt and stains, and toothpaste which not only
whitens teeth and prevent cavities but guarantees the attention of the opposite sex.
Consumers may be tricked into buying items advertised in this way only to learn
afterward that the claims made were far from the truth.

 Consumers rights & responsibilities

Consumers international is a not-for-profit company and is the world federation of summers
groups. It was founded in 1960 and has member around the world , including many in the
Caribbean region. Consumers international has identified eight consumer rights that consumers
should be familiar with. These are:
  The right to satisfaction of basic needs needs-to have access to basic, essential goods
and services: adequate food, clothing, shelter, healthcare, education, public utilities,
water and sanitation.
 The right to safety-to be protected against products, production processes and services
that are hazardous to health or life.
 The right to be informed- to be given the facts needed to make an informed choice, and
to be protected against dishonest or misleading advertising and labelling.
 The right to choose -0to be able to select from a range of products and services, offered
at competitive prices, with an assurance of satisfactory quality.
 The right to be heard- to have consumer interests represented in the making and
execution of government policy, and in the development of products and services.
 The right to redress-to receive a fair settlement of just claims, including compensation
for misrepresentation, shoddy goods or unsatisfactory services.
 The right to consumer education-to acquire the knowledge and skills needed to make
informed, confident choices about goods and services, while being aware of basic
consumer rights and responsibilities and how to act on them.
 The right to a healthy environment-to live and work in an environment that is non-
threatening to the well-being of present and future generations.

 Factors influencing consumer decisions

 Consumers should understand the various factors that influence their decision-
making. If it is recognized that the price of chicken is too high, then all consumers
should switch to cheaper substitutes or refuse to purchase the product. When this is
done suppliers would be forced to reduced prices.
 Use of modern technology
 Modern technology has transformed the way commercial and financial transactions are
carried out. Consumers need to exercise caution when using technology as the systems
are open to abuse. For example consumers should:
*ensure that the internet shopping sites have secure payment methods
*never give out personal information, bank details or PINS.
*be aware of internet and email scams.