Consumer Law

FTC regulation of specific industries

1. Used-car sales 2. Funeral home services 3. Real estate sales 4. Online sales

Bait-and-Switch Advertising

A deceptive practice which a seller advertises a low-priced item, generally unavailable to the consumer, and then pushes the consumer to buy a more expensive item.

Multiple-Product Order

A form of cease-and-desist order issued by the FTC that applies not only to a specified product but also to other products produced by the saw firm.

Corrective Advertising

Advertising in which the company explicitly states that formerly advertised claims were untrue. Also called counter advertising.

Ad Substantiation

An FTC standard requiring advertisers to have a reasonable basis for the claims made in their ads.

Unsolicited merchandise

Anyone receiving such merchandise may treat it as a gift.

FTC actions against deceptive advertising

Cease-and desist actions, Multiple-product orders, Corrective advertising

The Credit Card Fraud Act

Closes loopholes in federal laws to punish people further who commit credit card fraud.

The Consumer Product Safety Act

Created the Consumer Product Safety Commission (CPSC) to "protect the public against unreasonable risks of injuries and deaths associated with consumer products.

The Fair Credit Billing Act

Created to handle billing errors

How does the Federal Trade Commission protect consumers?

Educate consumers and legal action. The FTC receives complaints and does nonpublic investigations that lead to consent order, or a cease-and0desist order.

The Fair Credit Reporting Act

Ensures accurate credit reporting.

Half-truth

Information that is true but is not complete.

Other Consumer Protection Laws

Meat inspection act of 1906, Drug-Price Competition and Patent-Term Restoration Act of 1984.

Toy Safety Act of 1984

Permits the Consumer Product Safety Commisionto recall toys and other articles children use.

The Fair Debt Collection Practices Act

Regulates the actions of debt collectors that regularly attempt to collect debts on behalf of others.

The Truth in Lending Act

Requires sellers to disclose the terms of the credit or loan to facilitate the consumers comparison of a variety of credit lines or loans.

The Fair Credit Billing Act

Seeks to rectify problems and abuses associated with credit billing errors.

The Fair and Accurate Credit Transactions Act

Takes affirmative actions to control and prosecute identity theft.

Federal Do Not Call registry

Telemarketers cannot call consumers who have voluntarily placed their phone numbers on federal DO Not Call list.

1991 Telephone Consumer Protection Act

Telemarketers cannot use an automatic telephone dialing system or a prerecorded voice.

Door-todoor sales

The Cooling-off rule gives consumers three days to cancel purchases they make fro salespeople who come to their homes.

How does the federal Trade Commission determine what constitutes deceptive advertising?

The FTC decides whether an advertisement is deceptive on a case-by-case basis. Deceptive claims are a material misrepresentation, omission, or practice that is likely to mislead a reasonable consumer.

Federal Trade Commission

The FTC is an independent federal agency with five commissioners appointed by the president and confirmed by the senate to protect consumers.

What are different laws that help insure consumer health and safety?

The Federal Food, Drug, and Cosmetic Act and the Consumer Product Safety Act.

What are the different acts that provide credit protection?

The Truth in Lending Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act.

Telephone and mail-order sales

The mail or Telephone Order Merchandise rule of 1993 extends protections to those who purchase over the phone or by fax.

Puffing

The use of generations and clear exaggerations.

Telemareting and Consumer Fraud and Abuse Prevention Act of 1994

This act created certain requirements regarding when and how telemarketers may make calls.

consent order

a statement in which a company agrees to stop disputed behavior but does not admit that it broke the law.

consumer law

a statute or administrative rule serving to protect consumer interest.

Corrective advertising

advertising in which the company explicitly states that the formerly advertised claims were untrue.

cease-and-desist order

an FTC order requiring that a company stop its illegal behavior.

Tobacco advertising

cigarette and smokeless-tobacco advertising is restricted.

Multiple-product orders

court orders requiring firms to stop current advertisements on numerous produces, as opposed to one specified product.

industry guides

interpretations of consumer laws created by the FTC to encourage business to stop unlawful behavior.

Flammable Fabrics Act of 1953

prohibits the sale of highly flammable clothing

The Federal Food, Drug, and Cosmetic Act

protects consumers against misbranded or adulterated food, drugs, medical devices, and cosmetics.

deceptive advertising

the practice of advertising with claims that mislead or could mislead a reasonable consumer.

What is the purpose of labeling and packaging laws?

to enforce laws that regulate product labeling. Makes companies provide accurate and understandable information on labels. An example would be low fat food products.