Decisions

• Consumer: a person who buys a product or service. • You have the right to buy or reject products and

services but you have a responsibility in making these choices.

• Disposable income: the money that remains after all taxes on it have been paid. The next thing will have to be necessities like food, clothing and housing.

• Discretionary income: the money remaining after paying for necessities. This is when you satisfy wants with luxury items or putting money into savings.

• Regardless of you income this takes constant decision making.

Rights and Responsibilities • Consumerism is a movement to educate buyers on

making smart decisions.• Consumer Bill of Rights:– Right to a safe product– Right to be informed– Right to choose– Right to be heard – Right to redress

• Smart strategies:– Gather info about products– Be careful with advertising to learn but not be swayed– Research where to buy and what brand to buy with

comparison shopping (cost, benefits, and risks).

Consumer Protection• The Federal Trade Commission and the U.S. Securities

and Exchange Commission has the task of protecting consumers, the Attorney General and the Secretary of state also can help with this task.

• The Better Business Bureau is a non profit organization with many branches that does business reviews and tries to help the consumer.

• Credit protection laws: credit card act of 2009 protects you from your interest increasing on a recent balance. There are also various other laws that protects you from credit companies. The below site lists them all.

http://www.federalreserve.gov/creditcard/regs.html

Investment scams/fraud• Internet fraud– Online investment newsletter– Online bulletin boards– Pump and dump schemes– Spam

• Pyramid schemes• Ponzi schemes• Fraudulent solicitation by in person, e-mail, and

phone.• Read terms and conditions and fine print• Put yourself on do not call lists and make sure

companies have personal information disclosures.