INFORMING BUYERS OF RISKS - ANALYSIS OF THE MARKETING AND REGULATION OF ALL-TERRAIN VEHICLES

An examination of the marketing practices and the regulation of the al l terrain vehicle (ATV) industry during the 1980s is presented. This r eview includes a content analysis of ATV advertising, au examination o f the Consumer Product Safety Commission's (CPSC) regulation of the AT V industry, a study of the consent decree regulating the marketing of ATVs, and an analysis of the costs and benefits to the ATV industry of providing additional information to consumers, The paper concludes th at deaths sind injuries from ATY-related accidents might have been red uced substantially if the CPSC had been more aggressive in informing t he public about the safety hazards associated with ATV use. Cost/benef it analysis reveals that the profit-maximizing strategy for ATY manufa cturers was to market ATYs aggressively even when faced with the prosp ects of lawsuits and regulatory action.