Informing Buyers of Risks: Analysis of the Marketing and Regulation of All Terrain Vehicles

Abstract

An examination of the marketing practices and the regulation of the all terrain vehicle (ATV) industry during the 1980s is presented. This review includes a content analysis of ATV advertising, an examination of the Consumer Product Safety Commission's (CPSC) regulation of the ATV 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 that deaths and injuries from A TV‐related accidents might have been reduced substantially if the CPSC had been more aggressive in informing the public about the safety hazards associated with ATV use. Cost/benefit analysis reveals that the profit‐maximizing strategy for ATV manufacturers was to market ATVs aggressively even when faced with the prospects of lawsuits and regulatory action.