CONSUMER PROTECTION - MORE INFORMATION OR MORE REGULATION? (FROM CONSUMERISM - SEARCH FOR THE CONSUMER INTEREST, 3D ED., 1978, BY DAVID A AAKER AND GEORGE S DAY - SEE NCJ-47160)

• NCJ Number: 47163
• Author(s): W H CUNNINGHAM; I C M CUNNINGHAM
• Date Published: 1978
• Length: 7 pages
• Corporate Author: Free Press
• Publication Format: Document
• Publication Type: Report (Study/Research)
• Language: English
• Country: United States of America
• Note: REPRINTED WITH DELETIONS FROM JOURNAL OF MARKETING 40 (APRIL 1976), P 63-68

Annotation

RESEARCH UNDERTAKEN TO DETERMINE HOW MUCH INDIVIDUALS IN VARIOUS SECTORS OF SOCIETY KNOW ABOUT THE CONSUMER PROTECTION LAWS AND THEIR RIGHTS AS CONSUMERS IS REVIEWED.

Abstract

THE RESEARCH CONSISTED OF TWO SUBSTUDIES. THE FIRST DEALT WITH THE CONSUMERS' KNOWLEDGE OF 10 AREAS OF THE LAW, INCLUDING FALSE OR DECEPTIVE ADVERTISING, FALSE AND DECEPTIVE RETAIL ADVERTISING, CREDIT REGULATIONS, CREDIT REPORTING, DOOR-TO-DOOR SELLING, AUTOMOBILE SALES, CREDIT CARDS, LABELING, TRUTH-IN-LENDING, AND DECEPTIVE RETAIL PRACTICES, THE RESPONDENTS WERE DIVIDED INTO SIX INCOME SEGMENTS TO DETERMINE IF THEIR KNOWLEDGE OF CONSUMER PROTECTION LAW DIFFERED ACCORDING TO INCOME LEVEL. THE SECOND HALF OF THE STUDY CONSISTED OF ASKING A SAMPLE OF LAWYERS THE SAME QUESTIONS THAT WERE ASKED OF THE FIRST GROUP OF CONSUMERS. SIGNIFICANT DIFFERENCES BETWEEN INCOME GROUPS WERE FOUND ONLY IN THE AREA INVOLVING TRUTH-IN-LENDING LEGISLATION; THE RESPONDENTS IN THE LOWER-INCOME GROUPS APPEARED TO BE LESS FAMILIAR WITH THE LAW THAN DID THOSE IN THE HIGHER-INCOME FAMILIES. GENERALLY, IT WAS FOUND THAT THE AMOUNT OF INFORMATION THE CONSUMER RESPONDENTS HAD VARIED GREATLY AMONG THE 10 AREAS, THOUGH IT DID NOT VARY MUCH AMONG THE INDIVIDUAL INCOME GROUPS. IN EACH CASE 60 PERCENT OR MORE OF THE RESPONSES IN ALL OF THE SIX INCOME GROUPS WERE CORRECT. THE DIFFERENCES BETWEEN THE LAWYER AND THE CONSUMER SAMPLES WERE STATISTICALLY SIGNIFICANT, ALTHOUGH THE MAGNITUDE OF THE DIFFERENCES WAS NOT AS LARGE AS HAD BEEN ANTICIPATED. FOR EXAMPLE, IN THE AREA OF FALSE OR DECEPTIVE ADVERTISING, 33.5 PERCENT OF THE CONSUMERS' RESPONSES AND 46.5 PERCENT OF THE LAWYERS' RESPONSES WERE CORRECT. WITH THE EXCEPTION OF CREDIT CARD REGULATIONS, FOR WHICH 44.5 PERCENT OF THE CONSUMERS' AND 77 PERCENT OF THE LAWYERS' RESPONSES WERE CORRECT, THE SPREAD BETWEEN THE CORRECT ANSWERS OF THE TWO SAMPLES AVERAGED 12.2 PERCENT. IN THE AREA OF LABELING REGULATIONS, THE CONSUMERS PROVED MORE KNOWLEDGEABLE THAN THE ATTORNEYS. THE IMPLICATIONS OF THE DATA ARE DISCUSSED. A TABULAR BREAKDOWN OF THE RESULTS IS PROVIDED. IT IS CONCLUDED THAT MORE AND BETTER INFORMATION CONCERNING CONSUMERS' RIGHTS MUST BE PROVIDED TO INDIVIDUALS OF ALL INCOME LEVELS, AND THAT THIS CAN BE BEST ACCOMPLISHED THROUGH AN ALLIANCE OF INDIVIDUALS IN THE EDUCATIONAL, LEGAL, AND BUSINESS COMMUNITIES. THE ONLY ALTERNATIVE TO THIS APPROACH IS INCREASED GOVERNMENT REGULATIONS. (KBL)