The (FTC) Ferderal Trade Commission Shares it's Experience with Asean Nations

The U.S. Federal Trade (FTC) Commission Regional Seminar on Consumer Protection (held in beautiful Langkawi Malaysia)is held in conjunction with the Asean Coordinating Committee on Consumer Protection and with the assistance of the Asean Secretariat and The Ministry of Domestic Trade, Co-Operatives and Consumerism of Malaysia.

However, what the FTC does is monitor all forms of print, on air and internet advertising to "protect" U.S. consumers from those who would seperate citizens from their money or otherwise harm their health through bogus claims like super weight or unsubstantiated miricle cures for cancer!

Ms. Blodgett and Ms.Goh also shared the when required the FTC has access to experts with specific industry knowledge that can varify if certain submitted medical documentation in valid.

The FTC works to also protect consumers from expressed and implied information that will mislead the consumer.

With respect to labelling; participants were told about the 4P's

• Prominence Will consumers notice the disclosure?

• Presentation Is the language easy to understand? Does it contradict the other assertions in the ad?

• Placement Is it located where the consumers will see it?

• Proximity Is it close to the language being qualified?

The days's 2nd section covered covered such topics MLM and Pyramid Schemes, SPAM email and PHISHING.

In Brief, were told that the difference between Multi Level Marketing and Pyrimid Schemes is in how money is earned!

If the recruiter to the "opportunity" hints that the way to make the big money is through bringing in more people, then chances are you are dealing with a pyramid scheme. As these schemes put more emphesis on recruitment more than on product sales!

Word to the would be new recruit. If you get 3 new people by your 2rd month and they do the same by the third month, in 13months (Won't happen) 193,710,244 will be recruited.

That is more than most populations of small countries!

And remember you are going after the same fish as those that have started before you.

Speaking of Phishing...this is the practice used by people to gain your personal data like bank pin number or some other important information that they will use to get your money.

Therefore, if someone calls of sends you an email telling you that you your bank account or credit card information has been stolen; ignore it.

They only want to gain your confidence so that later you will reveal the information the really want.

What you should do if you are contacted is contact your Bank or credit card company directly by calling their official phone number and make your inquiry.

Warning! Never click a link that someone sends stating that it is to your bank.

SPAM emails and SPYWARE were also discussed as these have been infecting computer users around the world.

The only word of advice...Get good protection against these for your computer and do not open links sent to you from those you do not know.

Group Dinner by the beach at 8pm so I'll sign off here.

End of Day!

In the segment; Dato' Dr. Rachagan pointed out that given the complexity of the U.S credit system, in depth analysis would be would be impossible with the time allotted. However, he hoped participants would gain a glimpse into the overall process so that they could develop their own indigenous model(s) and not just mirror the West’s.

In a slide showing the “Rapid Growth of Consumer Credit” Dato' Dr. Rachagan presented the following:

• Loans by licensed moneylenders in Peninsular Malaysia 2006 to 2007: increased from RM3.1 ~ 5..1 billion

• Loans from Pawnbrokers in Peninsular Malaysia and East Malaysia in 2007: RM2.7 billion

One statistic that would be of interest is the amount of money borrowed and owed (after interest) to the illegal (Ah-Long) money lenders

With any man made system, there are advantages and disadvantages. This is especially true with respect to Consumer Credit.

An advantage: The use of installment credit as a means of budgeting that disciplines the buyer to meet expenses regularly.

A disadvantage: Over-indebtedness with dire consequences for the borrower and their family.

One major cause of Over-indebtedness which the speaker pointed out was due to the following: A change in the circumstances (loss of employment, illness divorce) may result in the inability to pay existing debts. Borrowing even more triggers a cycle of indebtedness

Wrapping up Day 2 we again listened to presentations from Ms. Katrina Blodgett and Ms. Hui Ling Goh.

We learned that in 2008 the U.S. Federal Trade Commission received over 1,223,370 consumer complaints.

While this number is staggering, it was pointed out that with a staff of 1,100; not all complaints are acted upon. We were told that only those cases that which cause the greatest consumer injury are followed up.

Presently, one of the biggest threats facing consumers is that of "Identity Theft".

Identity theft takes place when your personal information (I/C number, credit card history etc) are acquired by others for the sole purpose of using this information to defraud lending institutions. Those who are defrauded are then strapped with debts which they never realized they have incurred.

Our presenter stated that it was imperative that those who handle personal information have in place security systems that prevent cyber or internal personnel from compromising information that can be used to cause financial harm to consumers.

The 2day seminar was filled with concepts that the members of ASEAN could take back and adapt to their own requirements.

To learn more about the U.S. Federal Trade Commission Click Here!

Additional photos of Langkawi

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