5. Deceptive Practices and Consumer Protection Flashcards
These are acts that mislead deliberately or acts that cause one to believe what is not true the intention of which is to take unfair advantage of another.
Deceptive practices
Forms and Types of Deception in Business
- False advertising and other misrepresentation
- Deceptive pricing
- Bluffing in negotiation and transactions
- Charging for goods and services at a higher rate than advertised price.
happens from hiring to firing of a worker
Employees’ deception
Direct or indirect misrepresentation of a product or service by intentionally distorting some details makes advertising _____ and ______.
false and deceptive
- Is a dishonest or fraudulent rivalry in trade and commerce that usually includes misrepresentation of one’s product through deceptive packaging, labeling, or other unjust practices.
unfair competition
Law that makes deceptive practices illegal and unethical.
RA 7394 Consumer Act of the Philippines
flow from deceit and they are detrimental both to sound agreement and good relationships between parties.
unethical practices
Deceptive practices directly undermine the _____ of the organization.
integrity
- Is required in any business transaction.
Trust
The _____ is always visible to the eyes (as demanded by law) whereas ______ remains invisible and is kept in conscience.
legal requirement ; ethical requirement
Being wrong in business is to violate the _________ of a contract such as selling knowingly low-quality products, uses a deceptive scale for measuring or when overpricing – thus breach of contract
legal requirement
Deviating from the requirement of social responsibility means doing business in bad faith by exploiting the consumer’s lack of __________.
commercial experience
It is our right to be safe and protected from harm.
right to safety
Ensures the safety of most products, tasked to protect the public from unreasonable risk of injury caused by consumer products.
DTI or Department of Trade and Industry
The ____ in the DTI ensures that processed foods, drugs, medical services and cosmetics are safe and properly labeled, that foods are wholesome and that drugs are effective.
FDA or Food and Drug Administration
Consumers need sufficient information in order to choose wisely among the competing products and services available.
Right to be informed
Essential Rights of Consumers
(1) Right to safety
(2) Right to be informed
(3) Right to choose
(4) Right to be heard
Business Responsibility Before Transaction covers:
(1) Production
(2) Information
Business Responsibility During Transaction
(1) to comply with terms of sales/sales contract
(2) to disclose the nature of a product or service
(3) to avoid misrepresentations
(4) to avoid coercion and undue influence
CSR after transaction
(1) Feedback systems through customer service departments
(2) Resolving complaints
(3) Compensatory justice
Business to assume responsibility when injuries arise out of the defects of the products.
compensatory justice
True or False
1. Deceptive practices are aimed not only at one stakeholder but also at the multiple stakeholders of business namely employees, consumers, government and general public.
2. Employee’s deception happens from hiring to firing a worker.
3. Illegal and deceptive practices have raised questions about the integrity of corporate leaders and placed concerns on morality and corporate social responsibility on the global agenda.
4. Accomplishing the legal requirement of a contract is the maximum necessity of the corporate citizenship.
5. The fulfillment of the social responsibility requirement does not complete the legal requirement.
6. According to Ralph Nader, it is good business when you know how to protect consumers from their own ignorance and indiscretion.
7. Business have the social responsibility to make sure that packages are labelled truthfully with basic facts such as quantity and ingredients, with expiration date, not misleading advertising
- T
- T
- T
- F
- F
- T
- T
