Addison Evans

Business Survey 101

10/20/15

Consumer Rights and Business Responsibility

The purpose of this paper is to discuss the issues that revolve around consumer rights and
the responsibility a business has to defend and maintain those rights. In the book, The Power of
Habit by Charles Duhigg, the author discusses how habits shape our behaviors and uses the retail
company Target as an example of how that company can actually predict which consumers will
become pregnant based upon their shopping habits and other pieces of information (Duhigg
2012: 184). And while I am not going to focus on the topic of habits, I am going to use Targets
approach of business practices as my example of ethics in relation to basic consumer rights.
Some of the issues surrounding consumer rights are influenced by political choices, manipulative
marketing by a business, and lack of involvement by the consumer themselves.
Consumer rights can be focused on four key parts. The right to be safe, the right to be
informed, the right to choose, and the right to be heard. There seems to be a gap between
businesses and consumers when it comes to keeping these rights. A majority of people seem to
be unaware that they are entitled to these things and some businesses use manipulative means to
avoid keeping them. We live in a time where word of mouth travels very quickly. Successful
companies are aware of this in the sense that one dissatisfied consumer can literally reach
thousands of people if they have an issue with a certain business (Almsmadi and Alnawas 2012).
So in order to maintain their proper image, a business can respect that consumers right to be
heard and seek to improve off of that feedback or they can neglect that right and seek to
manipulate their business image.
As I was researching this topic I found that the main issue with businesss responsibility
to defending consumer rights, is knowing the actual balance between the business and consumer.
It basically comes down to the fact that the business has the obligation to meet the consumers
expectations in a fair and appropriate manner. If everything was left up to the consumer, then

everything would be weighing on them to know the safety of the product, the stipulations of
prices, and finding out how to file a proper complaint if necessary. According to State and Baicu
and Popescu (2014) countries outside of the United States very rarely provide means for a
consumer to give proper feedback on the services provided. In Malaysia for example a website
was created to allow consumers to know how to prepare a complaint against a provider of
financial products and services (State and Baicu and Popescu 2014). In order to protect
consumers rights, businesses write a code of ethics which outlines appropriate conduct to
perform within that business (Kelly and McGowens and Williams 2014:57). A code of ethics
could include guidelines of conduct in relation to avoiding manipulative marketing schemes,
being accountable with faulty products, and having honest communications the customer
(Alsmadi and Alnawas 2012). Having a code of ethics provides a company a clear direction on
how to protect consumer rights while being able to make a profit.
However, the idea of consumer rights is becoming a worldwide concern (Alsmadi and
Alnawas 2012). Some companies engage in questioning selling processes, have unfair price
discrimination, seek to dominate over their competitors which removes the consumers ability to
choose, and use deceptive advertising tactics. (Alsmadi and Alnawas 2012). A great example of
these issues comes from the tactics Target uses to predict their consumers shopping habits.
Throughout the years, Target has been able to monitor those habits to the point that they can
actually predict when one of their customers will become pregnant before the person actually
knows it. They then use that information for their advertisements directed to that individual to
create or reinforce their shopping behaviors (Duhigg 2012:189). This brings up a few ethical
concerns and the responsibility that Target has in protecting consumer rights. By using private
information Target has violated that consumers right of being informed, being able to choose,

and the use of their own private information. Granted, Target doesn't sell or put someones
personal information out there for the world to see. In that sense Target protects the information
it has on that consumer. But that information is used for deceptive selling and eliminating a
persons ability to choose between two different stores. Just because you have the power to do
something, doesn't mean you should. When information is withheld, liberty is impeded.
(Henry 2010)
According to Alsmadi and Alnawas (2012) corporations have the obligation to maximize
on its positive impact to society, and minimize its negative impact on society. In order for this to
happen, several things need to take place. First, consumers need to be educated on what their
rights are, and what intent the business has. Government policy plays a huge role in that regard.
In 1985 the United Nations established guidelines for consumer protection. These guidelines
include: Protection of health and safety, protection of economic interests, providing adequate
information, and educating consumers (State and Baicu and Popescu 2014). In educating
consumers, businesses need to keep the bigger picture in mind. Making a profit is important, but
so is helping and developing their consumers ability to choose. Overall, I think that's what's most
important. Being able to provide a service that benefits the customer. Another thing is that
consumers need to take advantage of opportunities to be educated, be informed, be safe, and to
be heard. Business are mandated by law to protect and ensure those rights but it shouldn't rely
just on them. The individual consumer needs to find a sense of accountability within themselves
to make sure their needs are being met and their rights are protected. That's where the balancing
act comes in to play. The business needs to honestly communicate to the consumer and the
consumer needs to be accountable in giving feedback to the business. Through this, bridges can
be made and a balance found with consumer rights.

In conclusion, the way to resolve the issues revolving consumer rights is to basically keep
things simple. The way to defend consumer rights is by simply keeping them in the first place
and doing your part, either as the business or as the consumer. And not all businesses violate
consumer rights. Multiple businesses around the world, I'm sure seek to be honest and do what's
best for both parties involved.

Bibliography
Duhigg, C. (2012). How Target Knows What You Want Before You Do. In The Power of Habit
(p. 302). New York: Random House.
Alsmadi, S., & Alnawas, I. (2012). Consumer rights today: Are they in business or out of
business? International Journal of Marketing Studies, 4(1), 159-167. Retrieved
from http://search.proquest.com.ezproxy.ldsbc.edu/docview/1016140776?accountid=27877
State, O., Baicu, C. G., & Popescu, D. (2014). THE RESPONSIBILITY OF ORGANISATIONS
TOWARDS CUSTOMERS. CASE STUDY - ROMANIAN TRAVEL AGENCIES. Amfiteatru
Economic, 16(35), 258-272. Retrieved
fromhttp://search.proquest.com.ezproxy.ldsbc.edu/docview/1503087093?accountid=27877
Kelly, M., McGowen, J., & Williams, C. (2014). Business Ethics and Social Responsibility.
In BUSN Student Edition (Student ed., Vol. 6, pp. 53-80). Mason: South-Western, Cengage
Learning.
HENRY P. How Mainstream Consumers Think about Consumer Rights and
Responsibilities. Journal Of Consumer Research [serial online]. December 2010;37(4):670-687.
Available from: Academic Search Premier, Ipswich, MA. Accessed October 21, 2015.