Consumer Rights Exam 3

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  1. Food patterns in the US
    • -Increase in consumption of processed foods
    • -Food is the third most expensive monthly item consumers are buying behind housing and transportation
    • -Increased portion sizes (size of fountain drink has jumped from 7 oz in 1955 to 32 oz in 1990)
  2. Groups involved in food
    • Government agencies
    • Food instustry
    • Consumer advocates
    • Consumers
  3. Who regulates our food?
    • -Environmental Protection Agency (EPA)
    • -Food and drug administration (FDA)
    • -U.S. Department of Agriculture (EPA)
  4. Environmental Protection Agency(EPA)
    • Regulates pesticides and water quality standards
    • Is involved with the concern with monsanto
  5. Genetic Engineering
    Use of biotechnology to modify the genetic material of living cells
  6. Government control and labeling of GMOs
    • FDA, EPA, and USDA
    • No current labeling required, there is a call by consumer groups to require
  7. FDA responsible for:
    • Nutruition label and claims
    • Safety and purity of foods (Except meat and poultry)
    • Standards of identity
    • Food additives
    • Unsanitary, unsafe, adulterated or mislabeled products
    • Actions
  8. What actions can FDA take?
    -Voluntary Recall - peanut butter made in large batches recalled

    -Seizure (seise and destroy products) -FDA seized San Fransisco Natural Food Co. because it was contaminated by dead mice, droppings and urine

    -Injuction (prevent co. from specific act) - a company that knew their product has salmonella and the FDA step in to stop them from doing that

    -Prosecution (Civil and/or criminal charges)
  9. Requirements for claims on food products
    • Health claims
    • -Regulated by FDA/FTC
    • -Must be supported by "weight of scientific evidence"
  10. Food Additives and why use them
    • Substances added to food intentionally or by accident (ex. strand of hair)
    • Why
    • -Maintain/improve nutrition
    • -Maintain freshness
    • -Help in processing or preparation
    • -Alter taste or apperance
  11. USDA
    • Enforce laws and regulations concerning
    • -Meat, poultry, eggs and dairy
    • -Nutrition Education
    • Voluntary Grading system 
    • -USDA prime -young well fed cattle
    • -USDA select
    • -USDA grade a- poultry
    • Hazard analysis and critical control points
    • Conflicts of interest
    • -Increase demand/promotion
    • -Nutrition education
  12. Organic food labeling
    • 100% organic = has only organic ingredients
    • Organic = 95% - 100% organic ingredients
    • Made with organic ingredients = 70% of the ingredients are organic
    • Contains organic ingredients = contains less then 70% organic ingredients
  13. Food poisonings cases in the US
    • About 76 million cases a year
    • -About 325000 require hospitalization
    • -More than 5000 die
  14. Food Irradiation
    • Exposing food to radiation to kill potentially harmful pathogens that cause food-borne illness
    • -Bacteria, parasites, insects, fungi
  15. Subsidy
    Financial or in-kind support extended to an economic sector (or institution, business, or individual) to promote specific economic and social policies
  16. Where do subsidies go in the US
    • -Over 90% in U.S. goes to corn, wheat, soybeans, rice
    • -3/4 of subsidy money goes to top 10% of recipients
    • -May be helping factory farms buy out small farms
  17. Different names sugar can be disguised under
    • Corn syrup
    • Crystalline fructose
    • Dextrose 
    • Fructose
    • Malt
    • Syrup
    • High fructose corn syrup
  18. Labeling misrepresentation
    • Ex. "free range" poultry regulation
    • -Chickens must "have access to the outdoors for an undetermined period each day"
    • Term to look for: pastured eggs and meat, allowed to roam in open pastures
  19. Cow and chicken feed
    • Plant based
    • -70%-90% corn/soybean meal
    • -Remaining 10-30% other
    • *PRocessed feathers
    • *Plastic pellets
    • *Meat and bone meal
    • *Poultry litter -banned in 2004
    • *Cow blood -banned in 2004
  20. Farm fish feed
    Fish meal, fish oil; meat, bone feather meal
  21. Animal Feed Safety: Food Industry Argument
    • Animal-protein products are nutritional ingredients
    • Nitrogen level in poultry litter high
    • "Recycling" waste
  22. Consumer/Food advocates concerns with animal feed
    • Feed can become contaminated
    • Toxins often stored in fat
    • Lack of FDA rules and enforcement
  23. Why are surgery cost so high in U.S.?
    • Malpractice insurance
    • -Insurance docters carry in case they are sued
    • -about $100,000/year
    • Research & development
    • Insurance company control
  24. Medicare
    • -Federal health insurance program for American 65+ & some with disabilities
    • -Fraud abuse and billing errors accounted for $12 billion dollars a year
  25. Ways to reduce your health care costs
    • Use employer health care coverage
    • Use generic drugs & prescription mail order programs
    • Use physicians who participate in your health care plan
    • Ask how much services cost
    • Ask questions
    • Use reviews of doctors online
  26. Wellness
    • Ability to live life fully with optimal health and vitality
    • -Includes physical, emotional, intellectual, spiritual, interpersonal, social, and environmental well-being
  27. Well-being
    • State of being healthy, happy or prosperous
    • Present health and expectation of continued health
  28. Consumer health
    Decisions consumers make about health care, including products and services purchased, insurance, lifestyle
  29. US Health Care System
    • Run by insurance companies
    • Has avoided insuring those with major problems
    • Cost shifting for unisured
  30. Vaccines
    • Cure:
    • Infectious Disease
    • -Disease that can be passed from one person to another
    • -Factors: viruses, bacteria
    • Chronic disease
    • -Disease that develops and continues over long period of time
    • -Factors: lifestyle, genetics, environment
  31. Why is health care difficult to buy
    • Many providers of similar services
    • Prices are not standardized and difficult to obtain
    • Hard to deterine reliability
    • Redress mechanism are inefficient
  32. Why is difficulty in buying health care hard to change?
    • Third party control unique to medical system
    • Knowledge gap between providers and users
  33. Trends in health care
    • Retail health clinics (CVS minute clinic)
    • No insurance doctor offices
    • Surgery auctions
  34. Prescription drugs
    • FDA
    • -Pre-market review
    • -Users fees to speed product approval
    • -Limited authority
    • Patents & generics
    • Imported drugs
  35. Drugs that pose safety concerns
    • Meridia (weight loss)
    • -over 29 deaths
    • -Recalled 2010
    • Accutane (Acne)
    • -Over 142 suicides involving accutane since 1982
    • Serevent (Asthma)
    • -Active ingredient: salmeterol
    • -Clinical trial: more asthma
  36. Dietary supplements
    • 1994 Dietary Supplement Health & Education Act
    • -Supplement companies can market new products w/o FDA approval
    • *Cannot claim to prevent or cure a disease
    • Health claims must be supported
    • Limited quility control
    • Herbals are untested
    • Dietary supplements safety act of 2010 
    • -Proposed, not yet passed
  37. Medical Devices
    • Regulated by FDA
    • Three level of risk
    • -Level 1 (low risk) - must register device and company with FDA
    • -Level 2 (medium risk)
    • -Level 3 (high risk) - require clearance / approval to enter market
  38. Regulation of Cosmetics
    • FDA
    • -Regulates cosmetics after released to public
    • -no prior review or approval of ingredients or products
    • -To remove from market you have to prove in court that it is inguring people, labeled incorrectly, or violates the law
  39. Underutilization
    • Consumers use a products much less than they intended to upon purchase
    • Why?
    • -Impulsiveness
    • -Sale purchase
    • -Function problems
    • -Safety Concerns
    • -Loss of interest
    • -Life style change
  40. Bounded rationality
    • Consumers have limited capacity for processing information
    • Thus, many consumers make a constructive choice
  41. Causes of unintentional injuries
    • Fatigue, stress, sleep deprivation
    • Risk taking
    • Bad judgement
    • Distractions
    • Intoxication
    • Smoking in bed
    • Improper use of seat helts, safety seats, air bags
    • Nonuse of helmets & other safety equipment
  42. Net benefit
    the total of all the benefits of a course of action less all the costs
  43. Safety regulation critics pov
    • People should know better
    • Too much government is too expensive
    • Limits freedom
  44. CPSC Powers
    • Product recalls
    • Civil and criminal penalties
    • Fine manufacturers who do not notify CPSC about problems with their products
  45. National highway traffic safety administration
    • Part of department of transportation since 1966
    • Goal: reduce deaths, injuries and property loseses from motor vehicle accidents, establish and enforce safety standards, investigate safety defects
    • New car assessment
  46. Home improvement tips
    • Get recommendations
    • Check BBB for complaint records
    • Get multiple written estimates
    • Get references and talk with people
    • Check permit and inspection requirements
    • Don't pay up front
    • Pay by credit card if possible
  47. Travel fraud or deception
    • Check agency reputation
    • Review credit card protections
    • Pickpocketing
    • Street marketers
  48. Digital divide
    • The internet is not equally accessible by all people
    • "have and have nots"
  49. Online shopping - consumer problems
    • Product return policies
    • Slow/poor costumer service
    • Quality of merchandise
  50. Cookies
    • Message sent to browser by web server
    • Purposes: identify user, customize pages, save login info
  51. What is identity theft
    • Someone steals your personal information and uses it fraudulently
    • Costs time and money
    • Can destroy credit and reputation
  52. Types of indentity theft
    • Financial identity theft (bank account)
    • Medical ID theft (insurance)
    • Theft of a child's or deceased person's identity
    • Synthetic Identity theft (using different peoples information to create a new person)
    • Criminal ID theft
    • Smart phone ID theft
  53. Costs of ID Theft
    • Average fraud amount per victim: 4607
    • Estimated out of pocket cost for ID theft victims: 631
    • More than 100 hours cleaning up a newly open fraudulent account
  54. How does ID theft happen?
    • "Dumpster Dive"
    • Stolen wallet or purse
    • Stolen mail
    • Stolen records from employers
    • Stolen online information
  55. Where do data breaches happen
    • Banking credit financial
    • Business 
    • Educational
    • Government military
    • Medical healthcare
  56. How do data breaches happen
    • Unintended disclosure
    • Hacking or malware
    • Payment card graud
    • Insider
    • Physical loss
    • Portable / stationary devices
  57. Phishing
    • An attempt to "hook" you into revealing your personal and confidential information
    • Consumer recieves emails that appear to come from legitimate business/organization
  58. Skimming
    • Credit or debit cards
    • A device reads and records credit card number to another electronic storage device
  59. Malware
    • Malicious software remotely installed on your computer
    • -Can steal, damage or delete your files and other data
    • Ex. spyware, trojans, viruses
  60. Malicious websites
    • Harmful sites lure users by promising desired information
    • Links to malicious websites:
    • -Online search results
    • -Sent via email
    • -Social media pages
  61. Non-Secure transactions
    Identity Thieves intercept personal information from sites that don't have secure payment forms and companies that store debit and credit card information without proper safeguards
  62. Social Networking
    • Sites may compromise personal data
    • Revealing too much such as:
    • -Full name
    • -Date of birth
    • -Hometowm
    • -Relationship status
    • -School locations and graduation dates
    • -Pet names
    • -Other affiliations, interests and hobbies
  63. Government agencies involved with ID theft
    • Federal Trade Commission (FTC)
    • Department of Justice
    • Federal Deposit Insurance Corporation
  64. Identity theft and assumption deterence act
    • Passed October 1998
    • Purpose: Made idenitty theft a federal crim
    • Enforces of the act
    • -Investigating Violations: US Secret Service, FBI, US Postal Inspection Service
    • -Prosecution: Department of Justice
  65. DETER
    • Safegruard information
    • -Shred financial documents
    • -Protect your SS #
    • -Don't Give out personal information unless you're sure who you're dealing with
    • -Don't use obvious passwords
    • -Keep information secure
  66. DETECT
    • Monitor Financial Account/Billing Statements
    • -What for mail or bills that don't arrive and denial of credit for no reason
    • -Inspect your credit report - law entitles you get on free credit report a year
    • -inspect financial statements -charges you didn't make
  67. DEFEND
    • Report Problems Quickly
    • -Place a "fraud alert" on your credit reports
    • -Equifax
    • -Experian
    • -TransUnion
Card Set:
Consumer Rights Exam 3
2014-04-10 22:19:24
Consumer rights

Consumer Rights exam 3
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