Consumer law ppt @ bec doms

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1 Consumer Law

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Consumer law ppt @ bec doms

Transcript of Consumer law ppt @ bec doms

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Consumer Law

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§ 1: Deceptive Advertising§ 1: Deceptive Advertising

Areas of Consumer Law Regulated by Statutes: Deceptive Advertising. Labeling and Packaging. Sales. Credit Protections. Consumer Health and Safety. State Consumer Protection.

Areas of Consumer Law Regulated by Statutes: Deceptive Advertising. Labeling and Packaging. Sales. Credit Protections. Consumer Health and Safety. State Consumer Protection.

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PuffingPuffing

Vague generalities and obvious exaggerations are permissible and not considered deceptive.

Vague generalities and obvious exaggerations are permissible and not considered deceptive.

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Bait and Switch

The advertising of a product at an attractively low price to lure customers in to buy more expensive items.

Telemarketing and Electronic Advertising. The Telephone Consumer Protection Act (TCPA)

prohibits automated solicitation using automatic telephone dialing system or a prerecorded voice.

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FTC Actions Against Deceptive Advertising

FTC Actions Against Deceptive Advertising

The Federal Trade Commission, charged with enforcing federal laws against deceptive advertising, can, in appropriate circumstances: Issue cease and desist orders.

With respect to a particular product or advertisement. With regard to multiple product orders.

Impose counter-advertising.

The Federal Trade Commission, charged with enforcing federal laws against deceptive advertising, can, in appropriate circumstances: Issue cease and desist orders.

With respect to a particular product or advertisement. With regard to multiple product orders.

Impose counter-advertising.

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Telemarketing and Electronic Advertising

Telephone Consumer Protection Act 1991. Prohibits: telephone solicitations using automated dialing

systems or a pre-recorded voice or unsolicited faxes. Creates private cause of action, either actual or $500 damages.

Telemarketing and Consumer Fraud and Abuse Prevention Act 1994. Requires telemarketers to identify themselves and not

misrepresent facts. Requires name to be removed from list.

Case 44.1: FTC v. Growth Plus International Inc. (2001).

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§ 2: Labeling and Packaging Laws§ 2: Labeling and Packaging Laws

Labeling must be accurate, and must use words that are easily understood by the ordinary consumer.

Product labeling and packaging are regulated by: Wool Products Labeling Act of 1939. Fur Products Labeling Act of 1951. Flammable Fabrics Act of 1953. Fair Packaging and Labeling Act of 1966. Smokeless Tobacco Health Education Act of 1986. Nutrition Labeling and Education Act of of 1990.

Labeling must be accurate, and must use words that are easily understood by the ordinary consumer.

Product labeling and packaging are regulated by: Wool Products Labeling Act of 1939. Fur Products Labeling Act of 1951. Flammable Fabrics Act of 1953. Fair Packaging and Labeling Act of 1966. Smokeless Tobacco Health Education Act of 1986. Nutrition Labeling and Education Act of of 1990.

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§ 3: Sales§ 3: Sales

Forms of Sales : Door-to-Door Sales. Mail-Order Sales. Telephone and Mail-Order Sales. Unsolicited Receipt of Merchandise.

Forms of Sales : Door-to-Door Sales. Mail-Order Sales. Telephone and Mail-Order Sales. Unsolicited Receipt of Merchandise.

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Door-to-Door SalesDoor-to-Door Sales

Most states requires that, for door-to-door sales, consumers have a post-sale “cooling-off” period during which they can cancel their purchase without obligation.

Consumers are given the most favorable benefits of the FTC rule and their own state statutes.

Most states requires that, for door-to-door sales, consumers have a post-sale “cooling-off” period during which they can cancel their purchase without obligation.

Consumers are given the most favorable benefits of the FTC rule and their own state statutes.

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Telephone and Mail-Order SalesTelephone and Mail-Order Sales

Telephone and mail-order sellers can be subject to federal mail and wire fraud statutes.

FTC Rules require mail and telephone merchants to ship orders within the time promised in their catalogues and advertisements, to notify consumers when orders cannot be shipped on time, and to issue timely refunds when orders cannot be shipped.

The Postal Reorganization Act of 1970 provides that unsolicited merchandise sent by U.S. mail may be retained, used, discarded, or disposed of in any manner deemed appropriate, without the recipient’s incurring any obligation to the sender.

Telephone and mail-order sellers can be subject to federal mail and wire fraud statutes.

FTC Rules require mail and telephone merchants to ship orders within the time promised in their catalogues and advertisements, to notify consumers when orders cannot be shipped on time, and to issue timely refunds when orders cannot be shipped.

The Postal Reorganization Act of 1970 provides that unsolicited merchandise sent by U.S. mail may be retained, used, discarded, or disposed of in any manner deemed appropriate, without the recipient’s incurring any obligation to the sender.

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§ 4: Credit Protection§ 4: Credit Protection

Consumer Credit is protected by: Truth-in-Lending Act. Fair Credit Reporting Act. Fair Debt Collection Practices Act. Wage Garnishment.

Consumer Credit is protected by: Truth-in-Lending Act. Fair Credit Reporting Act. Fair Debt Collection Practices Act. Wage Garnishment.

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Truth in Lending ActTruth in Lending Act

Requires all consumer lenders to compute the cost of a loan the same way and to advertise it as an Annual Percentage Rate (APR)

Through the Equal Credit Opportunity Act, requires that credit be extended without regard to race, sex, color, national origin, age, or marital status

Limits consumer liability for credit card debt in cases of stolen cards

Through the consumer Leasing Act of 1988, requires that leasors of consumer items valued at less than $25,000 make certain disclosures

Requires all consumer lenders to compute the cost of a loan the same way and to advertise it as an Annual Percentage Rate (APR)

Through the Equal Credit Opportunity Act, requires that credit be extended without regard to race, sex, color, national origin, age, or marital status

Limits consumer liability for credit card debt in cases of stolen cards

Through the consumer Leasing Act of 1988, requires that leasors of consumer items valued at less than $25,000 make certain disclosures

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Fair Credit Reporting ActFair Credit Reporting Act

Limits the activities of credit reporting agencies.

Consumers have the right to access information contained about them in a credit reporting agency’s files and to require credit reporting agencies to delete unverifiable information in a consumer’s credit record.

Limits the activities of credit reporting agencies.

Consumers have the right to access information contained about them in a credit reporting agency’s files and to require credit reporting agencies to delete unverifiable information in a consumer’s credit record.

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Fair Debt Collection Practices ActFair Debt Collection Practices Act

Prohibits Collection Agencies from the following: Type, times, and places that debt collectors can contact

debtors. Contacting third parties about payments. Using harassment or intimidation or employing false

misleading information. Contacting debtor after notice of payment refusal.

Requires that collectors provide validation notice to the debtor, at the time of first contact.

Case 44.2: Snow v. Jesse L. Riddle, P.C. (1998).

Prohibits Collection Agencies from the following: Type, times, and places that debt collectors can contact

debtors. Contacting third parties about payments. Using harassment or intimidation or employing false

misleading information. Contacting debtor after notice of payment refusal.

Requires that collectors provide validation notice to the debtor, at the time of first contact.

Case 44.2: Snow v. Jesse L. Riddle, P.C. (1998).

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Garnishment of WagesGarnishment of Wages

Legal procedure by which a creditor may collect on a debt by directly attaching, or seizing, a portion of the debtor’s assets (such as wages that are in the possession of a third party.

Debtor is entitled to notice and an opportunity to be heard in a process of garnishment.

Wages cannot be garnished beyond 25% of the debtor’s “after-tax earnings up to a maximum amount designed to leave the debtor a specified minimum income.”

Legal procedure by which a creditor may collect on a debt by directly attaching, or seizing, a portion of the debtor’s assets (such as wages that are in the possession of a third party.

Debtor is entitled to notice and an opportunity to be heard in a process of garnishment.

Wages cannot be garnished beyond 25% of the debtor’s “after-tax earnings up to a maximum amount designed to leave the debtor a specified minimum income.”

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§ 5: Consumer Health and Safety§ 5: Consumer Health and Safety

Federal Food, Drug, and Cosmetic Act. This statute protects consumers against

adulterated and misbranded foods and drugs.

Consumer Product Safety Act. This act created the Consumer Product Safety

Commission which has broad regulatory authority over the safety of consumer products.

Case 44.3: U.S. v. Mirama Enterprises, Inc. (2002).

Federal Food, Drug, and Cosmetic Act. This statute protects consumers against

adulterated and misbranded foods and drugs.

Consumer Product Safety Act. This act created the Consumer Product Safety

Commission which has broad regulatory authority over the safety of consumer products.

Case 44.3: U.S. v. Mirama Enterprises, Inc. (2002).