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Consumer Protection - Coggle Diagram

- - - - a2) Delayed payment fines on credit
        
        individual customer doesn't think it applies to itself (amazon prime?) (i.e. subscription model)
      - a3) multidimensional pricing and saliency
        
        *Ryanair...* (pay for the luggage, snacks, place etc...)
        
        it also brought benefits to welfare, possibility to travel Y's point
        
        Alternative: bundling of goods, Mac-book example -> you pay less for the pc and more for the screen holder thingy
        
        Hidden Taxes, booking hotels
      - a1) sellers exploiting biases Rebates/Cashbacks (not illegal)
        
        indirect refunds, basically. Via discounts.
        
        digital transition to market reduced cashbacks
        
        a) -> vendors playing with the channel of payments to its advantages
        
        or the "checklist for each cup of coffee" method: buy ten, at the eleventh you pay less -> customers need to return to shop to effectively get discount
      - Regulatory Remedies - for the Government
        
        scores & ratings
        
        full disclosures to intermediaries
        
        disclosing usage patterns
        
        disclosing features
        
        Argument: companies want to keep the recipe secret
        
        mandated disclosure of key ingredients - it was thought as a revolution
        
        or so they thought, it was actually a disappointment
        
        companies found ways around that (i.e. sugar added)
        
        Example: attention on what is disclosed and not the rest
        
        Nobody reads EULA
        
        crying wolf problem
        
        small business are burdened
        
        companies are not doing other things & it can backfire as well
        
        more unethical behaviour, example in drug prescription
        
        1 more item...
        
        Mandated Disclosure is still one of the most common tools for regulation
        
        conflict of interests have to be disclosed
        
        right to remain silent
        
        etc.
        
        very low cost solution, also
        
        (perceived) high social benefits & low costs
        
        easy to implement, label
        
        Native Advertising
        
        "sponsored by"
        
        form of disclosure