This guide to business ethics provides key terms and concepts related to business ethics in a short, easy-to-use format. It provides objective coverage of theories, corporate social responsibility, human resources issues, consumer protection, and ethical issues in marketing and advertising. It is an ideal supplement for business ethics courses or as a reference for students and practitioners who would like to learn more about the basics of business ethics.
Consumer Protection Legislation
Consumer protection regulation refers to government involvement in the marketplace to protect consumers in commercial transactions from potential harm caused by businesses. The potential harm may arise from the use of unreliable or unsafe products, deceptive advertising, asymmetry of knowledge of products and services, and privacy intrusion in the Internet age. In the United States, the federal and state governments took important steps in consumer protection, especially in the late 1960s and 1970s. Before this, the ancient rule of caveat emptor, or “let the buyer beware,” generally guided consumer transactions. Although consumer protection regulation did exist (e.g., the 1906 Food and Drug Act, the creation of Federal Trade Commission [FTC] in 1914), it was limited and weakly enforced.
The surge of ...