NCJ Number
152995
Date Published
1994
Length
56 pages
Annotation
This report discusses the inherent problems the consumer in American society faces when trying to locate information on specific goods and services, and recommends ways in which policy makers, industry representatives, and consumer advocates can join forces to resolve the crisis in the consumer information marketplace.
Abstract
The report reviews personal, commercial, and independent sources of consumer information and analyzes methods by which the government and industry have encouraged the provision of information from these sources. For example, 30-day guarantees of satisfaction, performance and safety standards, and public disclosure requirements have promoted consumer information acquisition in areas where it was previously lacking. Information problems facing consumers in six markets (automobile insurance, life insurance, long-distance telephone service, food, financial planning, and continuing care retirement communities) are examined. Results from the analysis showed that consumer information policies are most justified when risks are moderate and reversible, consumers are capable of looking after their own interests, incentives for provision of information from other sources is weak, and policies can reduce information costs rather than increasing information benefits. 52 notes and 30 references