Chapter 24 – Consumer Protection
Practical Internet Exercise 24-1:
Legal Perspective—The Food and Drug Administration
Instructions: One of the important federal government agencies protecting consumers is the U.S. Food and Drug Administration (FDA), an executive agency within the Department of Health and Human Services.
To learn more about this agency, go to the About FDA/What We Do Web page listed below and answer Question 1.
Next, on that same page, click on the Laws Enforced by FDA link on the left-hand margin and answer Question 2.
Lastly, read the article entitled, “The Long Struggle for the Law” by clicking on the second URL below, and answer Questions 3–5.
Visit URLs:
FDA Overview
The Long Struggle for the Law Article
Questions and Answers
Answer the following questions in the fields below.
Question 1: List two major responsibilities of the FDA.
Question 2: What laws does the FDA enforce? What activities does the FDA conduct to protect the safety and wholesomeness of food? What other products are monitored by the FDA?
Question 3: Prior to the 1906 legislation, what food statutes existed? According to the author, when did the “first prolonged and impassioned controversy in the Congress involving a pure food issue” take place? What was the controversy about?
Question 4: The author considers seven “Cs” in his “pure food story.” For what words do these “Cs” stand?
Question 5: What events immediately preceded the passage of the 1906 Pure Food and Drugs Act? Why was Upton Sinclair’s The Jungle a catalyst for the passage of the act?
Practical Internet Exercise 24–2:
Management Perspective—Internet Advertising and Marketing
Instructions: The Internet has greatly expanded the potential scope of business advertising. Business managers and owners should be aware, however, that rules governing deceptive advertising also apply to advertising and marketing on the Internet. To assist both businesses and consumers, the Federal Trade Commission (FTC) has prepared special guidelines titled “Advertising and Marketing on the Internet: Rules of the Road.” Go to the URL listed and read through these guidelines.
Visit URL:
Advertising and Marketing on the Internet: Rules of the Road
Questions and Answers
Answer the following questions in the fields below.
Question 1: The Federal Trade Commission Act empowered the FTC to take action to prevent deceptive and unfair acts or practices. When will the FTC consider a representation, omission, or practice to be deceptive? When will the FTC consider an act or practice to be unfair?
Question 2: When is a claim misleading? What example does this document give of a misleading claim?
Question 3: Sellers are responsible for the claims that they make about their products and services. In what circumstances might third parties, such as advertising agencies or Web site designers and catalog marketers, also be liable for disseminating deceptive representations? What can these parties do to avoid liability for deceptive advertising?
Question 4: According to this document, “The Internet provides unprecedented opportunities for the collection and sharing of information from and about consumers.” What has the FTC done to protect the privacy rights of consumers?