Busn 115

Natural Disaster

BUSN 115

Professor Robert Goldwasser

July, 26 2014

Legal instruments for consumer’s protection

Abstract

The question that we probably do not often ask ourselves is: how well are we protected from fraud? The principal objective of this paper is to provide an insight into the work of Federal Trade Commission, a government organization that protects us from deceptive business practices. I describe the principles of their work and what are their goals. Further, I explain the effectiveness of their actions and how the citizens can participate in actions of stopping the unfair business activities. Finally, I come to the conclusion that the existence of such a state legal instrument can achieve full economic efficiency and increase economic well-being of its citizens.

Introduction

Consumers are still the main driving force of the US economy and the protection of their rights must be a priority. Marketing, as a social and managerial process, has brought greater satisfaction of customer needs, but it is also characterized by an imbalance of power between buyers and producers. In order for system to operate in such a way that the market is fair and efficient for producers, competitors and consumers (Willkie, Moore, 2003. 137), it is necessary that the company, along with a thorough pursuit of profit generation, take into account the interests of consumers. Consumer rights must be unquestionable at any time, so that they can safely and freely compete in the market. The subjects of this essay are the consumers, their rights and legal regulations that protect those rights in the United States.

Federal Trade Commission

The United States Federal Trade Commission (FTC) is a government organization with a special mission to secure buyers and push rivalry by collaborating with law enforcements nationwide and around the world (Ftc.gov). Their fundamental objective is to furnish customers with a market that is free from extortion and guarantee the...