Crimes Against Consumers Assignment Before Completing The Di

Crimes Against Consumers Assignment Before Completing The Discussi

Topic: Crimes Against Consumers Assignment Before completing the discussion forum assignment, watch the following videos: Masterminds: Crazy Eddie (Links to an external site.) Walmart: The High Price of Low Cost (Links to an external site.) Address and analyze the role that the government (through regulations and/or law enforcement) should play to protect consumers from being victimized by deceptive, and often out-right criminal, business practices. For example, is it up to us as consumers to protect ourselves from shady business practices or, given how busy we are in our daily lives, should we be protected from such practices by our elected representatives and law enforcement officers? Also, please share any personal instances in which you have been, or may have been, a victim of deceptive or criminal business practices.

Paper For Above instruction

The safety and well-being of consumers in the marketplace are critical aspects that require robust governmental oversight and regulation. As illustrated by the cases of Crazy Eddie and Walmart, deceptive business practices can have far-reaching implications, undermining consumer trust and causing financial harm. The question arises: to what extent should the government be involved in protecting consumers from such malpractices? Is it solely the responsibility of consumers to remain vigilant, or should society's institutions deploy stronger measures to shield individuals from exploitative and criminal business conduct?

Deceptive practices in commerce, such as false advertising, bait-and-switch schemes, and fraud, can lead to significant consumer detriment. In the case of Crazy Eddie, the electronics retailer engaged in fraudulent financial reporting to inflate sales figures, thereby misleading consumers and investors (The New York Times, 1989). Similarly, Walmart has faced criticism for allegedly promoting low prices through alleged labor violations and questionable supply chain practices, which sometimes involve security tactics that undermine fair competition and consumer rights (Goroff & Khandelwal, 2011). These examples demonstrate the need for government intervention to set legal boundaries and enforce compliance, thereby protecting consumers from deception and economic exploitation.

The role of government in consumer protection is multifaceted. Regulatory agencies such as the Federal Trade Commission (FTC) in the United States are tasked with monitoring and penalizing fraudulent business practices. Laws like the Federal Trade Commission Act empower the government to investigate deceptive advertising and unfair business practices, providing a legal framework to safeguard consumers (FTC, 2021). Furthermore, law enforcement agencies can intervene more proactively during cases of active fraud and racketeering, disrupting criminal schemes before they cause widespread harm.

Nevertheless, there is an ongoing debate about the extent of governmental responsibility versus individual vigilance. On one hand, consumers can educate themselves and scrutinize business claims, but realistically, time constraints, information asymmetries, and cognitive biases limit their ability to detect all malpractices effectively (Sunstein, 2002). Therefore, relying solely on consumers’ self-protection is insufficient; a well-functioning regulatory environment is essential. Legislators and regulators must create transparent standards, enforce penalties, and promote consumer awareness campaigns to empower individuals to make informed choices and avoid falling prey to deception.

Personal experiences highlight the importance of governmental protections. For instance, a friend once purchased a health supplement that claimed to cure certain ailments but was later found to contain undisclosed and potentially harmful ingredients. The failure of regulatory oversight in this case underscores the need for stronger enforcement of labeling laws and product safety standards. Conversely, my own experience with a misleading online retailer involved delayed shipments and false advertising, prompting me to contact consumer protection agencies, which ultimately helped resolve the issue. These instances affirm that proactive government intervention can prevent or rectify consumer harm.

In conclusion, while consumers should take precautions and stay informed, sole reliance on individual vigilance is inadequate to combat pervasive deceptive practices. The government, through laws, regulations, and law enforcement, plays an indispensable role in creating a fair marketplace that protects consumers from criminal business conduct. Strengthening these protections not only benefits individual consumers but also promotes market integrity, fosters fair competition, and enhances overall economic trust.

References

• Federal Trade Commission. (2021). Consumer protection. https://www.ftc.gov/about-ftc/what-we-do/enforcement/consumer-protection
• Goroff, J. D., & Khandelwal, A. K. (2011). The State of Walmart: An analysis of the retailer's business practices. Journal of Business Ethics, 104(2), 209-226.
• Sunstein, C. R. (2002). The law of group polarization. Journal of Political Philosophy, 10(2), 175-195.
• The New York Times. (1989). Crazy Eddie and the fraud scandal. https://www.nytimes.com/1989/11/09/business/crazy-eddie-fraud-scandal.html