NCJ Number
56929
Date Published
1978
Length
6 pages
Annotation
VARIOUS FORMS OF CONSUMER 'RIPOFFS' ARE CONSIDERED, INCLUDING DISHONESTY IN THE FOOD INDUSTRY, GOVERNMENT PROGRAMS, BUSINESS PRACTICES, CREDIT, THE AUTOMOBILE INDUSTRY, AND WHITE-COLLAR CRIMES OF ALL TYPES.
Abstract
IN ITS BROADEST SENSE, THE TERM RIPOFF INCLUDES ALMOST ALL FORMS OF ECONOMIC DISHONESTY, USUALLY NONVIOLENT. INVESTIGATIONS IN GROCERY STORES SHOW THAT A LARGE PROPORTION OF RETAIL DISHONESTY OCCURS BY EXPERT MANIPULATION OF THE CASH REGISTER. ON THE OTHER SIDE OF THE COIN, SUPERMARKETS ALONE LOST AT LEAST $1 BILLION ANNUALLY DUE TO SHOPLIFTING, PILFERING, AND EMPLOYEE THEFT. THE U.S. CHAMBER OF COMMERCE INDICATES THAT CUSTOMER AND EMPLOYEE DISHONESTY IS GROWING AT AN ALARMING RATE THROUGHOUT PRIVATE AND PUBLIC SECTORS. BRIBERY, KICKBACKS, UNDER-THE-TABLE CAMPAIGN CONTRIBUTIONS, AND OTHER SERIOUS CHARGES HAVE BEEN LEVELED AGAINST MORE THAN 85 MAJOR U.S. COMPANIES. REVELATIONS OF CORPORATE ILLEGALITY HAVE SERVED TO SPARK GROWING DEBATE OVER THE COUNTRY'S ETHICAL AND MORAL CONVICTIONS. SURPRISING TO MANY IS THE DIRECT INVOLVEMENT OF TOP CORPORATE MANAGEMENT RATHER THAN LOWER-LEVEL OFFICIALS IN MUCH ILLEGAL ACTIVITY. A 1967 PRESIDENTIAL COMMISSION ON LAW ENFORCEMENT AND THE ADMINISTRATION OF JUSTICE NOTED PROBABLE CAUSES OF DISHONESTY IN THE CONSUMER ARENA: (1) CROWDING IN URBAN AREAS; (2) EXPANDED YOUTH POPULATION UNABLE TO FIND GAINFUL EMPLOYMENT; (3) ABUNDANCE OF THINGS TO STEAL AND WAYS OF STEALING; (4) AFFLUENCE THAT MAKES PEOPLE LESS PROTECTIVE OF THEIR POSSESSIONS; (5) HIGH COST OF ADEQUATE SECURITY IN BUSINESSES AND HOMES; (6) RISE IN NEW TYPES OF MERCHANDISING THAT PLACES CUSTOMERS IN TEMPTING CONTACT WITH PRODUCTS THEY WANT TO OWN; AND (7) TOLERANCE FOR NONVIOLENT CRIMINAL BEHAVIOR. PUBLIC OPINION POLLS SUPPORT THE BELIEF OF U.S. CITIZENS THAT THE POLITICAL SYSTEM IS DISHONEST AND UNRESPONSIVE TO THE NEEDS OF THE PEOPLE. REACTING TO PUBLIC DEMANDS FOR CONSUMER PROTECTION, THE FEDERALTRADE COMMISSION, FOR EXAMPLE, IS FOCUSING ON UNFAIR AND DECEPTIVE BUSINESS PRACTICES, CREDIT, AND PARTICULARLY UNDERTAKERS, FOOD ADVERTISING, HEALTH SPAS, MOBILEHOMES, HEARING AIDS, HOME STUDY COURSES, AND USED AUTOMOBILES. IT IS ESTIMATED THAT WHITE-COLLAR CRIMES AND ECONOMIC EXPLOITATION COST $40 BILLION ANNUALLY. EXPERTS STATE THAT ILLEGAL PRICE FIXING MAY BE THE MOST EXPENSIVE RIPOFFCOSTING CONSUMERS APPROXIMATELY $50 BILLION ANNUALLY IN EXCESSIVE PRICES. LEGISLATION TO DEAL WITH CONSUMER PROBLEMS IS DISCUSSED. (DEP)