Chapter 24 - consumer protection

What is the deal with online deceptive advertising?

Ads must be truthful and not misleading, advertisers must have evidence to back up their claims, Ads cannot be unfair, Ads must disclose relevant limitations and qualifying info concerning the claims advertisers are making,

What is the Consumer Financial Protection Bureau (CFPB)?

An agency that oversees the credit practices of banks, mortgage lenders, and credit-card companies

*Under the FCRA (Fair Credit Reporting Act), what is required of the insurer to the insured?

Anytime a consumer is denied credit or insurance on the basis of her or his credit report, the consumer must be notified of that fact

What is the Fair Debt Collection Practices Act (FDCPA)?

Attempts to curb abuses by collection agencies.A creditor that is attempting to collect a debt is not covered by the act unless it misrepresented itself as a collection agency to a debtor

The CPSC's (Consumer Product Safety Commission) Authority does what?

Broad regulatory authority over the safety of consumer products. Set safety standards for consumer products

What is the Truth-in-Lending Act?

Disclosure law that is administered by the Federal Reserve Board. It only applies to people who lend funds, sell on credit, or arrange an extension of credit in the ordinary course of business

What is the deal with Tainted Foods?

Due to food contamination in the U.S. (chipotle), Congress enacted the Food Safety Modernization Act to provide greater government control over the U.S. food safety system

The FDA is responsible under the ___________ for ensuring that drugs are __________ and _________ before they are marketed to the public

FDCA; safe and effective

Define deceptive advertising:

Occurs if a reasonable consumer would be misled by the advertising claim

What is the Fair Credit Reporting Act (FCRA)?

Protects consumers against inaccurate credit reporting and requires that lenders and other creditors report correct, relevant, and up-to-date information

What is counter-advertising?

Requires the company to advertise a new claim informing the public about the earlier misinformation

What is the most important federal legislation relating to food and drugs?

The Federal Food, Drug, and Cosmetic Act (FDCA)

Does the Federal or State law regulate food laws?

The Federal Law on menu labeling supersedes all previous state and local laws in this area

What are the two primary agencies that issue regulations on food labeling?

The Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA

What does The Federal Food, Drug, and Cosmetic Act (FDCA) do?

The act protects consumers against contaminated and misbranded foods and drugs

What is bait-and-switch advertising?

The low price is the "bait" to lure the consumer into the store. The salesperson is instructed to "switch" the consumer to a different, more expensive item.

Food products must bear labels detailing the nutritional content: number of calories and the amounts of various nutrients that the food contains (T/F)

True

Vending machine food must also be labeled (T/F)

True

What did the Affordable Care Act aim to do?

aimed to combat the problem of obesity in the US

What is the goal of the Federal Trade Commission (FTC)?

consumer protection

What did the Food Safety Modernization Act do?

gives the FDA authority to directly recall any food products that it suspects are tainted, rather than relying on the producers to recall items

Along with the calories posted at a restaurant, restaurants also must post guidelines on the number.....

of calories that an average person requires daily so that customers can determine what portion of a day's calories a particular food will provide

What is "Cooling-Off" laws?

permit the buyers of goods to cancel their contracts within three business days

What does food labels need to have?

provide standard nutrition facts and regulates the use of such terms as fresh and low fat

What is a multiple product order?

requires a firm to stop false advertising for all of its products, not just the one involved in the original action

What does the Energy Policy and Conservation Act (EPCA) require?

requires automakers to attach an information label to every new car. The label must include the Environmental Protection Agency's fuel economy estimate for the vehicle.

Who are the requirements made by the FDCA monitored and enforced by?

the FDA

The Fair Packaging and Labeling Act requires that food product labels identify....

the product, the net quantity of the contents, the manufacturer, and the packager

All restaurant chains with _____________ or more locations are now required to post the caloric content of the foods on their menus so that customers will know how many calories the foods contain

twenty