Major Issue Paper
When consumers engage in fraud, they attempt to deceive businesses for their personal gain or when a consumer intentional deceives an organization by taking an economic advantage over them (insert bibliography 1 ). There are multiple ways a consumer can deceive a business. Some examples include identity theft; check fraud, credit card fraud and shoplifting. Employees, consumers, and businesses can do fraud in many ways. Consumers have achieved consumer fraud by improving and changing ways to receive an advantage over a company. Consumer fraud not only affects consumers and businesses but also the economy. According to the National Retail Security Survey, nearly 41% of the retail chain revenue loss was due to employees ( insert bibliography 2 ).
The Federal Trade Commission was created in 1914; it has helped create many different policies for consumer protection rights. Some companies have a 100% satisfaction guarantee where customers can return items if they are unhappy, Bass Pro Shop would be an example. Consumer fraud is when a consumer is trying to achieve a gain from a company. Not all times the company can prove this type of fraud. Some acts of consumer fraud can be legally prosecuted such as shoplifting. A consumer that is tricking a company into an economic advantage and understands what they are doing is engaging in a guile activity, which is a type of consumer fraud ( insert bibliography 3 ). An example of a guile activity would be returning an already worn piece of clothing and getting the purchase amount back. Consumer fraud can be clear to determine, but it can also be very difficult to see if there is not enough evidence to support the accusation. Consumers have become creative over the years to better manipulate companies to achieve the consumer’s gain.
In 2005, the Federal Trade Commission reported, more than 25 million consumers annually engage in consumer fraud (insert bibliography 4)....