Guide to Marketing Labor Laws

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.

The Federal Trade Commission (FTC) is responsible for preventing unfairness and deception in the marketplace. Because of this, the FTC Act was established, giving the Commission the power to bring law enforcement against misleading and false claims that a certain product is of U.S. origin. It requires a product to be “all or virtually all” made in the United States. To provide guidance to all marketers who want to make a qualified Made in USA claim and an unqualified Made in USA claim under the “all or virtually all” standard, the Commission also issued an Enforcement Policy Statement on U.S. Origin Claims.

A lease ad is any message inviting, offering or announcing to the public the availability of a consumer lease. It can be in the form of oral, visual, print or electronic media.

The Consumer Leasing Act is a federal law requiring lease agreements to include specific terms like a statement of the number of lease payments plus their dollar amounts, penalties for not paying on the due date and whether a lump sum of payment is due at the end of the agreement.

In 2003, the CAN-SPAM Act (Controlling the Assault of Non-Solicited Pornography and Marketing Act) was established to set requirements for those sending commercial emails, gives penalties for spammers and companies whose products are advertised as spam and violating the law. It gives the consumers the right to ask emailers to stop spamming them.

The law became effective on January 1, 2004 with the Federal Trade Commision which is the nation’s consumer protection agency as the one authorized to enforce this act. The Department of Justice (DOJ) also has the authority to enforce criminal sanctions on the spammers.

The National Organic Program (NOP) implements, handles, develops, administers national production and sets labeling standards for organic agricultural products. It also accredits foreign and domestic certifying agents who inspect the production of organic products and handles operations certifying that they meet USDA standards.

In 1990, the Organic Foods Production Act was implemented requiring the Secretary of Agriculture to launch a National List of Allowed and Prohibited Substances that identifies which synthetic substances can be used and non-synthetic substances that may not be used in handling operations and organic production.

The marketing of private medicare plans is governed by the principles and code of ethics of the marketing industry. However, there comes a time when marketing practices become too aggressive and customers are left with less freedom over choosing the perfect medicare plan for them. This must be the main reason why some U.S. states are seeking more regulatory authority over the marketing of medicare plans. Or so they believe.

MedicalNewsToday.com shares that several states will soon ask Congress to let them set marketing standards for private medicare plans. Apparently, they are continuously flooded with complaints regarding the “abuses” of firms selling medicare plans. I think that if this is really the case, then pushing for more regulatory authority is justified. Let’s see in the next few weeks if Congress shares the same viewpoint.

For more juicy details, click here.

Starting the first of July, there will be minor changes in the way motorists drive their vehicles. Mosdaq.com reports that several U.S. states such as California, Connecticut, District of Columbia, New Jersey and New York will be banning the use of hand-held phone while driving. For motorists who bring their cellular phones with them on a regular basis, the technique is to use a hands-free device.

Apparently, the law is aimed at ensuring greater safety on the road. While wireless communication devices have proven to be of help to people during emergencies, the fact remains that many road mishaps occur and traffic violations are being committed when motorists use phones through their hands.

For the link to the article, click here.