Consumer protection laws are a form of government regulations that aim to ensure the consumers’ rights and protect them from deceptive or fraudulent business practices. A consumer is someone who acquires goods and services for direct use, rather than resale. The US consumers are protected from unsafe products, fraud, deceptive advertising, and unfair business practices through a variety of federal, state and local laws. There are also a number of consumer organizations, both governmental and non-governmental that promote consumers protection. For instance, Federal Trade Commission and Better Business Bureau are designed to enhance consumer awareness and prevent fraudulent business practices.
Businesses that are non-competitive and exercise unfair, deceptive practices as well as violate consumer protection laws are a subject to lawsuits or penalties. Here are 3 consumer protection laws that each business should apply to refrain from negative publicity and further legal liabilities.
Fair Trade Laws
Federal trade laws promote fair competition and protect consumers from deceptive or fraudulent practices in the marketplace. The Federal Trade Commission is lawful to investigate and sue companies for consumer law violation. Thus, when FTC gets a complaint about consumer law violation, it will conduct an investigation and if it finds unlawful practices, it will ask the company to voluntarily stop the deceptive behavior. In the event the company refuses to stop it, the FTC may make a claim before an administrative law judge. Typical examples of violating Fair Trade Laws include deceiving about a good’s origin and country of production, fraud advertising and so on.
Product Safety Laws
Companies that produce goods for public use should follow Consumer Product Safety Commission rules and regulations. CPCS defines product safety requirements, evaluates the safety of products and bans the hazardous products. When the CPSC reveals that a product represents a danger to the public, it may issue an enforcement action. Then, the company, producing the good, must notify the public of the danger and withdraw the product from the market. The CPCS does not regulate guns, drugs, and some other items.
Fair Credit Reporting Laws
Fair Credit Reporting Laws include Federal Credit Reporting Act (FCRA), Fair Credit Billing Act (FCBA), Fair Debt Collection Practices Act (FDCPA), Credit Card Act of 2009. All these laws are designed to protect consumers when they obtain or attempt to obtain credit. The laws ensure that consumers are secure from incorrect credit information or privacy invasion. Fair Credit Reporting Laws require credit companies to fully disclose terms of the credit card offer, including annual fees, interest rates, and late fees.
Fair Credit Reporting Laws endow the consumers with rights to knowing who gathers information about them and lets them challenge or correct the information that has already been collected about them in their credit report.
If you believe you have been deceived and your consumer rights are violated, an experienced consumer protection lawyer can help you restore your rights and advocate you in civil lawsuits. The knowledgeable consumer right protection lawyers at the Margarian Law firm have long and successful experience in handling all types of consumer rights issues. They can help you understand your consumer rights and will apply the Consumer Protection Law that is more suitable for your situation.