{"id":76,"date":"2015-08-28T20:24:08","date_gmt":"2015-08-28T20:24:08","guid":{"rendered":"https:\/\/courses.candelalearning.com\/waymakerintromarketing1xmaster\/?post_type=chapter&p=76"},"modified":"2017-07-21T21:16:17","modified_gmt":"2017-07-21T21:16:17","slug":"outcome-regulatory-laws","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-marketing-spring2016\/chapter\/outcome-regulatory-laws\/","title":{"raw":"Introduction to Regulatory Laws","rendered":"Introduction to Regulatory Laws"},"content":{"raw":"

What you'll learn to do: explain the laws that regulate marketing<\/h2>\r\nWhile there are\u00a0situations in which we expect individuals to act according to\u00a0higher moral laws, at a basic\u00a0level we always expect business professionals to follow the law. Most of the laws that impact marketers fall into a category called consumer protection. Consumer protection laws are created to ensure the rights of consumers and to create a fair marketplace for consumers.\r\n

The History of Consumer Protection<\/h3>\r\nHistorically, consumer protection laws in the United States have been\u00a0specific formal legal responses to address public outrage over the disclosure of industry abuses and crises.\u00a0For example, in 1905 a man named Upton Sinclair exposed the terrible worker conditions in the American meat-packing industry. His work sparked public outrage\u00a0and, in turn, led to the creation of the Food & Drug Administration and the first comprehensive inspection and regulation of food safety in the United States.[footnote]Spencer Weber Waller,\u00a0Jillian G. Brady, and\u00a0R.J. Acosta, \"Consumer Protection in the United States: An Overview,\"\u00a0http:\/\/www.luc.edu\/media\/lucedu\/law\/centers\/antitrust\/pdfs\/publications\/workingpapers\/USConsumerProtectionFormatted.pdf.[\/footnote]\r\n\r\nSimilarly, in the 1960s consumer advocate Ralph Nadar took on automobile safety, highlighting the immense profits made by auto companies relative to their investment in customer safety. In 1966 Congress unanimously passed the\u00a0National Traffic and Motor Vehicle Safety Act, and the\u00a0National Highway Traffic Safety Administration gained consumer protection powers. The number of vehicular deaths in the U.S.\u00a0reached\u00a0a high of 50,000 in 1960 and have continued to fall despite a larger number of drivers on the road.\r\n\r\n[caption id=\"attachment_3717\" align=\"aligncenter\" width=\"601\"]\"Graph<\/a> Source: http:\/\/www.iihs.org\/iihs\/topics\/t\/general-statistics\/fatalityfacts\/overview-of-fatality-facts[\/caption]\r\n

Government Consumer Protection and Enforcement Agencies<\/h3>\r\nA\u00a0number of governments agencies are charged with protecting consumers. The U.S. Federal Trade Commission (FTC) was created in 1914 and is charged with protecting America's consumers and promoting competition. The commission includes individual divisions that oversee a range of activities\u00a0that are of importance\u00a0to marketers, including the following:\r\n