Consumer Law

Cell Phone Calls

Telephone Consumer Protection Act prohibits autodialing a cell number and robo sales calls

Public Policy Violations

The FTC may decide a practices is unfair simply because it violates public policy

Deceptive Acts and Practices

failure to disclose pertinent facts, deceptive endorsements, misrepresentation of product or service, passing off, misleading price claims, bait and switch, free offers, false comparison and product disparagement

Unfair Methods of Competition

misleading contests and sweepstakes, negative options, willful breach of contract, unfair direct sales methods

.Com Disclosure Rules

must state its an ad and show results not typical

The FTC Act

section 5 of the FTC Act prohibits 'unfair and deceptive acts or practices.' -Test for Deceptive Ads: Does the ad contain an important misrepresentation or omission that is likely to mislead a reasonable consumer

Credit Card Act of 2009

Regulates rate changes, late payment fees, prohibits overdrafts without customer's ok, due dates

Usury in NYS: Loans to Individuals

-0-250k: Civil: 16% Criminal: 25% -250K-2.5M: Civil: none Criminal: 25% ->2.5M None for both

Fair Debt Collection Practices Act: Collectors violate if:

-Call or write debtors who have notified them in writing they wish no further contact -Call or write debtors who are represented by counsel -Call before 8 or after 9 -Threaten debtors or use bad language -Call or visit debtors work if debtor's employers prohibit it

Federal Food, Drug and Cosmetic Act regulates

-Food standards, additives, advertising, drug safety and effectiveness -Food labeling controlled by Fair Packaging & Labeling Act

Consumer Product Safety Commission

-Manufacturers/distributors/retailers must report potentially dangerous product defects within 24 hours of discovery -When defect is possible, but not confirmed, have a reasonable period (<10days) to investigate

TILA and Reg Z. The Truth in Lending Act applies:

-to consumer loans, which have finance charges or which will be repaid in more than four installments

Usury in NYS: Loans to Corps

0-2.5 M Civil: None Criminal: 25% >2.5 M None for both

Mail or Telephone Orders: Shipping Time Table

1. Ordered items must be shipped when promised, or if no time specified, then within 30 days 2. If impossible, customer must be told new day and can change minds 3. If new date missed, seller must automatically cancel if form not returned saying want product

Unordered Merchandise

Can treat the mail as a gift

Credit Card dispute between customer and merchant

Card company cant bill customer if customer tries to resolve dispute, dispute for more than $50, merchant in same state or within 100 miles of customer's house

Unfair Practices Test

Causes substantial consumer injury and the harm of the injury outweighs any countervailing benefit, and consumers could not reasonably avoid injury

TILA- Reg Z. Enforcement

Consumer Financial Protection Bureau and the FTC

Right to Rescind Mortgage

Consumers have right to rescind mortgage for up to three business days after signing it, if lender doesn't comply with TILA consumer has three years to rescind

Stolen Debit Card

Electronic Fund Transfer Act has strict reporting requirements for debit cards: -If you report before used no liability -Report with 2 days of discover: $50 -Report after 2 days: $500 -No report within 60 days after statement received: no cap

Do-Not-Call Registry

FTC prohibits telemarketers from calling any telephone number listed on its do-not-call registry

Disputes under the Fair Credit Billing Act

IN a billing dispute, when customer writes to credit card company with 60 days, credit card company but acknowledge complaint within 30 days, investigate within 2 billing cycles, supply documentation, and not try to collect the amount in dispute during investigation

Bait and Switch

Merchant may not advertise a product and the disparage it to consumers in an effort to sell a different item

Reg Z Disclosures

Must be clear and in meaningful sequence. Must disclose finance charge and the APR

Door-to-Door Sales

Person must notify the buyer in writing and orally of right to cancel door-to-door transactions prior to midnight of the third business day after sale

The Equal Credit Opportunity Act prohibits any creditor from discriminating against a borrower because of:

Race, color, religion, national origin, sex, marital status, age, welfare recipient status

Stolen Credit Cards

Under TILA, customer liable for $50

U.S. Consumer Financial Protection

created by Congress in 2010 to regulate consumer financial products and services, including mortgages, credit cards, and private student loans, (autoloans now too). -Goal is to clarify and simplify the terms of credit cards, checking accounts, and mortgage disclosure forms

Federal Trade Commission

created in 1915 to regulate business. The FTC may enforce the law by voluntary compliance with regulations, administrative hearings and appeals (which may lead to a voluntary consent order or a forced cease and desist order), not criminal enforcement powers just civil. -Violations of voluntary consent or cease and desist orders will lead to penalties -Administrative Law Judge Rulings can be appeals to full FTC and then to federal appeals court