FHCE 3100 Lecture 6 Outline of Last Lecture I. HistoryOutline of Current Lecture II. Finishing Consumer Movement Current LectureExam Prep Ex) when was the industrial revolution? Be mindful of people Set it up in decades and with people, presidents who passed the bills  Read the book. Ex) talk about the act in class, so we need to read about it in book Ex) why is the supply curve moving? Graph. The supply and demand relationship? QUIZ IS OPEN, take it on Wednesday  You have to open the power point slides before taking quiz  Consumer bill of rights Passed by Kennedy Ex) airline passenger bill of rights…if airline has grounded for whatever reason the longest they can keep you on it is 4 hours  The Right to Safety Products offered for sale should not pose undue risk of physical harm to consumers or their families; yet in a recent year, for example, some 33 million people in the US were reported injured—and 30,000—killed—in product-related accidents. Products that causeinjuries include impure food, defectively manufactured automobiles and tires, drugs thathave harmful side effects, and unsafe appliances.  Kids are injured a lot CPSC The US government agency responsible for the safety of most products is the Consumer Product Safety Commission (CPSC). The CPSC was established in 1972 to protect the public from unreasonable risk of injury caused by consumer products The CPSC is responsible for enforcing the Flammable Fabrics Act (1953), which requires fabrics to meet standards of fire resistance, as well as the Poison Prevention Packaging These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Act (1970), and the Hazardous Substances Act (1960), which ban the use of certain dangerous substances and require warnings and safety information on the labels of others. The CPSC does not have authority over food, drugs, or motor vehicles. - (FDA…1906…has authority over that stuff) *Read about these in the book *Think logically about time; was there all these fabric in the 20s? no *Labels become thing in 50-60s as almost everyone can read in this time  FDA The Food and Drug Administration (FDA) Is charged with ensuring that processed foods, drugs, medical devices, and cosmetics aresafe and properly labeled; that foods are wholesome; and that drugs are effective.  It has the power to seize unsafe products and to criminally prosecute businesses that violate safety laws and standards.  The FDA inspects food-processing plants to be sure that food are made and packaged under sanitary conditions *Know there aren’t actually enough employees to inspect absolutely everything, so you are taking a risk  The agency must approve the safety and efficacy of all new prescription drugs before they can be marketed. The FDA also sets safety standards for radiation emitting productssuch as microwaves 8-10 years testing process  Some drugs known as “fast tracted”—they don’t have to go through the extensive screening process before going on the market - If this product can save your life for an incurable disease, they will make availableto you. Ex) cancer  The Right to be informed Consumers need sufficient info… The federal fair packaging and labeling act (1967), for example, requires that packages be labeled truthfully with such basic facts as quantity and ingredients.  Food  The Federal Truth in Lending Act or “TILA” (1968) requires that consumers be told in clear, accurate, and uniform terms how much it costs them to borrow money from a lender. Consumers must be told what their interest rates are This gave you opportunity to compare banks Many consumer problems are caused by incorrect or fraudulent information. The Federal Trade Commission (FTC) Right to choose The structure of American economic system is based on the belief that competition is the best regulator of the market place Right to be heard A consumer who has been cheated or bought product that doenst work properly has a right to seek refund, replacement, or other remedy.  The Better Business Bureau A business association, makes information about complaints it has received against businesses available to interested parties.  *Acts as mediatior between you and the firm. Go here if you aren’t satisfied with your firm If “better business bureau approved”, you know it has integrity Esther Peterson First appointee to the post of While House Consumer Advisor She is all about equal pay and working conditions  Later removed by Ford, reappointed by Carter  Third Era: 1960s and 1970s Books/individual’s activities Rachel Carson’s The Silent Spring (1962)- *She is the grandmother of the environmental movement- she compared childhood and adulthood. Remembered the peaceful land she sawas youth and now it is ruined DDT Banned  DDT was developed as the first of the modern insecticides early in WWII. It was initially used with great effect to combat malaria, typhus, and other insect borne human disease among both military and civilian populations BUT DDT stays on the plant and the bugs stay on it, now it causes bald eagle to eat it Mama Eagles would eat the bugs laced with DDT, she would make eggs for next generation but she would squish her eggs. There was not the next generation of eagles because of DDT  DDT is banned in the United states, not world wide  DDT is very effective in killing mosquitos, so if area where mosquitos carry malaria you don’t care about the eagle  Middle America uses DDT a lot Third era: Legislation 1960—Federal Hazardous Substances Labeling Act  1962—Kefauver-Harris Drug Amendment Requires drug companies to register with FDA  1966 National Traffic and Motor Vehicle Safety Act  Brought by Ralph Nader, read the book on this stuff What books led to these acts? 1967-Wholesome Meat Act  Connected to Upton Sinclair wrote jungle, Teddy read it and implemented this  OVERSIGHT—poultry wasn’t covered under this, so… 1968—Wholesome Poultry Products Act  1969—Child Protection and Toy Safety Act  Warning labels for age appropriate toys  Ex) McDonalds happy meal, “appropriate for ages 3 and up” 1970- Credit Card Liability Act; Poison Prevention Packaging Act; Clean Air