Ch 44: Consumer Protection and Product Safety

Question 1

U.S Department of Agriculture (USDA)

Answer 1

-Regulates meat,poultry and other food products and requires consistent labeling
-Can initiate legal proceedings against violators.

Question 2

Food,Drug and Cosmetic Act (FDCA)

Answer 2

Provides basis for regulation for testing, manufacture, distribution, and sale of foods, drugs cigarettes, cosmetics and medicinal products.

Question 3

Food and Drug Administration (FDA)

Answer 3

Federal agency that administers the FDCA and The Family Smoking Prevention Control Act and may recall food.

Question 4

FDCA Prohibitions

Answer 4

-Adulterated food.
-False and misleading labeling of food products.

Question 5

Nutrition Labeling and Education Act (NLEA)

Answer 5

Federal statute requires food manufacturers to disclose nutritional information on food labels

Question 6

DRUG Amendment to the FDCA

Answer 6

-Empowers FDA to license new drugs.
-Manufacturer must provide adequate warnings, directions for use.
-May revoke approval of previously licensed drugs.
-Prohibits adulterated misbranded drugs.
-50% of cigarette package must contain warning label.

Question 7

United Nations Biosafety Protocol

Answer 7

-Genetically engineered foods Require warning labels such as “ may contain living organisms “.
-Notice on all genetically modified food.

Question 8

Regulation of Cosmetics

Answer 8

FDA Requirements:
-Proper labeling
-Disclosure of ingredients
-Display of warnings if carcinogenic

Adulterated or misbranded Cosmetics are prohibited.

FDA may remove from commerce cosmetics that contain unsubstantiated claims.

Animal testing is permissible.

Question 9

Products and Automobile Safety

Answer 9

> Consumer product safety act (CPSA)
Consumer product safety Commission (CPSC)

Question 10

Consumer Product Safety Act (CPSA)

Answer 10

Regulates potentially dangerous consumer products and created the Consumer Product Safety Commission.

Question 11

Consumer Product Safety Commission (CPSC)

Answer 11

An independent federal administrative agency empowered to adopt rules and regulations to enforce the CPSA.

Question 12

Health Care Reform Act

Answer 12

-Prohibits policy cancellation on ill insureds.
-Tax penalties imposed on citizens that refuse to buy insurance coverage.

Question 13

Unfair and Deceptive Practices

Answer 13

Federal Trade Commission Act Prohibits unfair and deceptive practices:
- False and deceptive advertising
- Bait and switch

Question 14

False and Deceptive Advertising

Answer 14

If it :
- Contains misinformation or omits important information that is likely to mislead a reasonable consumer.
- Makes unsubstantiated claim

Question 15

Bait and Switch

Answer 15

• seller advertisers low-cost merchandise to attract customers
  -seller pressures buyers to upgrade
  -Refuses to show advertised merchandise.
  -Discourages employees from selling advertised merchandise.

Question 16

Door to Door Sales

Answer 16

Consumers can rescind contracts in many states made with door-to-door sales representatives.

Consumer must send required notice of cancellation to seller.

Question 17

Do-Not-Call Registry - FTC

Answer 17

A register created by federal law on which consumers can place their names and freedom cells from unsolicited telephone calls.

Charities and political solicitations are exempt