Enacted in 1975 by the Congress is the Magnuson Moss Warranty Act. One of its goals is to encourage businesspeople to write their warranties in a “simple and readily understood” language.
It is important to have a well written warranty as it functions more effectively as a legal instrument defining the rights and obligations of your consumers and company. It is also an effective selling tool as it creates confidence in your product and lessens hassle on the customers as it tells what steps to take if ever any problem arises. This can aid in solving problems efficiently and in helping lessen consumer complaints.
The Federal Trade Commission focuses its enforcement and education efforts on novel schemes as well as traditional scams to fight consumer fraud. The FTC has orchestrated 11 major “sweeps” and filed over 50 cases and with law enforcement partners in other federal agencies and the states. These efforts resulted in an additional 374 federal and state actions. The Commission also has the objectives to achieve greater international cooperation to combat cross border fraud, broaden its education programs for consumers and business and step up criminal enforcement against those violating FTC orders.During the year 1997, cyberfraud only accounted for a relatively small percentage of total consumer complaints. But, with the surge of electronic commerce, it is taking on increasing importance for consumer protection authorities.
Good pricing practices are very good for business as it increases profits and customer satisfaction. Here are suggestions by the Federal Trade Commission and the National Conference on Weights and Measures to improve pricing practices:
1. Written procedures should be developed for all forms of
pricing activity in your store including ways to ensure that the price in the store’s computer matches the posted or advertised price.
2. Training programs should be developed for store employees that stress commitment to accurate pricing.
3. A pricing coordinator should be designated for your store.
4. Give one employee the responsibility for the price accuracy of all Direct Sale Delivery items.
5. Everyday check prices of random sample of items to ensure that the price in the store’s computer matches the posted or advertised price.
6. Prices in every aisle, section or area of the store should be checked several times a year to find all of the undercharges.
7. A pricing audit should be conducted by the inventory audit team while they’re doing an inventory audit.
8. To speed price audits, use hand held scanners.
9. To immediately replace incorrect or missing shelf labels, use a portable label printer during price audits.
10. For how to manuals on pricing accuracy, contact trade associations.
11. For information about inspection procedures and pricing laws, contact your local weights and measures officials
12. Encourage your wholesaler or trade association to set up an industry monitoring program.
The Dietary Supplements Health and Education Act (DSHEA) in 1994 was made possible through the collaboration of the Federal Trade Commission (FTC) and the Food and Drug Administration (FDA). The FDA is primarily responsible for claims on product labeling including the packaging, inserts and other materials while the FTC handles claims in advertising whether print, infomercials, catalogs and other similar direct marketing materials.
The act changed significantly FDA’s role in regulating the supplement labeling. It put emphasis that advertising especially on dietary supplements should be truthful, substantiated and not misleading.
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