Consumer Rights - Consumer Protection Law
What is Consumer Rights Law?
Consumer rights and consumer protection law provides a way for individuals to fight back against abusive business practices. These laws are designed to hold sellers of goods and services accountable when they seek to profit by taking advantage of a consumer’s lack of information or bargaining power. Some conduct addressed by consumer rights laws is simply unfair, while other conduct can be described as outright fraud. Consumer rights laws exist at the federal and state level. They are enforced by government agencies, offices of attorneys general, and through individual and class action lawsuits filed by victims.
Types of Consumer Protection Cases
The most common kinds of abusive business practices occur when consumers are in particularly vulnerable circumstances. For example, when people fall behind on their bills, debt collectors are in a position to make life even more difficult by calling in the early morning or late night hours, making contact at a person’s place of business, and speaking to friends and family. Consumer rights laws prohibit this sort of activity. In fact, under the Fair Debt Collection Practices Act (FDCPA), such harassment can result in a statutory damage award of $1,000 for the victim, plus the attorney fees incurred in bringing the suit.
Predatory lending also forms the basis for a large number of consumer protection lawsuits. These schemes cover a broad range of conduct, such as charging exorbitant interest rates on credit cards and other loans, hiding fees and penalties in the fine print of agreements seldom read by customers, and applying payments to low-interest portions of a loan balance first. Sadly, the foreclosure crises of 2010 exposed numerous lending scams in the real estate market. Federal legislation aimed at predatory lending includes the Truth in Lending Act (TILA) and the Home Ownership and Equal Protection Act (HOEPA) of 1994.
Consumer rights laws also protect the public from false or misleading advertising. For example, automobile dealers have been known to advertise a vehicle at a reduced price in order to draw shoppers to the dealership. Once they arrive, however, that vehicle or sales price is no longer available. The dealer will then pressure shoppers into purchasing a vehicle on less favorable terms. In addition to these “bait and switch” advertising tactics, consumer rights laws address things like warranty misrepresentation, defective products, forced arbitration clauses, identity theft, and other types of harassment and fraud.
The Federal Trade Commission (FTC)
In 1914, the U.S. Congress passed legislation creating the FTC, primarily in an effort to combat trusts and anti-competitive business practices. While the agency continues that effort, its role has since been expanded to cover a variety of consumer rights issues. The FTC’s Bureau of Consumer Protection is tasked with enforcing federal laws dealing with unfair or deceptive practices throughout the consumer economy. For instance, the bureau has taken an important step to curb telemarketing fraud through the creation of the National Do Not Call Registry. This popular service allows people to bar for-profit organizations from making unsolicited calls to their home telephones.
Consumer Rights Class Action Lawsuits
One problem facing consumer rights victims is the relatively small amount of economic damages they suffer as a result of a company’s improper conduct. When a consumer falls victim to fraud by purchasing a product or service that does not measure up to the seller’s promises, the consumer may suffer a loss equal to the amount paid, and perhaps some incidental expenses as well. But in all likelihood, the loss to the consumer will represent only a fraction of the amount of money it would take to bring a lawsuit against the seller. Consumers have the option of filing a complaint with federal or state authorities in an attempt to have sanctions brought against a fraudulent company, but this will not help consumers get their money back.
A class action lawsuit tips the balance of power in favor of the consumer. An individual whose rights have been violated can join together with others who have similar claims against the same defendant. Due to the economy of scale that exists with a class action lawsuit, a group of victims can present a serious litigation threat to even the largest corporations. Attorneys who handle these cases work on a contingency basis, meaning they only get paid if and when the victims are compensated. Furthermore, victims with claims that are the basis of a class action suit may decide to “opt-out” and pursue the matter individually when it is in their best interests to do so.
Learn if You Have a Consumer Protection Claim
If you believe a merchant has violated your consumer rights, it makes sense to speak with an attorney. You may be able to collect financial compensation, and send a message to the offender that abusive business practices will not be tolerated. Schedule an attorney consultation to learn more.
Know Your Rights!
- What Are Consumer Rights?
The phrase “consumer rights” is thrown around rather freely these days. But what are consumer rights? Are they written down somewhere? Where do they come from? What are the rights?
Articles About Consumer Law
- California Online Privacy Protection Act (CalOPPA)It is California that first put in place a policy that ensures the privacy of individuals when using commercial websites and users checking online services within the United States - California Online Privacy Protection Act ("CalOPPA"). This started first in 2003, and amendments to the policy occurred in 2013 with additional disclosures for the tracking of online visits by users.
- Whistleblowers Needed Now More than Ever as Federal Oversight Rolls BackThe federal government plays many roles. One of them is enforcing consumer protection laws, which should prevent consumers from being ripped off. If there are violations, those responsible can be held accountable. What happens when the federal government loses interest in protecting consumers and would rather protect businesses that prey on them? We’re going to find out.
- Are All Vehicles Covered by Lemon Law?Across the country, "lemon laws" exist as a means of protecting consumers from vehicles with serious or ongoing defects. However, when buying a new or used car, you should never assume that the vehicle will be protected by lemon law.
- Background Check Wrongly Shows a ConvictionIncorrect background checks are difficult to challenge, and these complications may lead to severe consequences for the victim affected by these agencies. It is often important to contact a lawyer to determine if the agency needs legal communication to alter the false details or if litigation is necessary to sue for the damages these incorrect reports cause.
- What Damages Are Available under the Fair Credit Reporting Act?The Fair Credit Reporting Act (FCRA) is to ensure that each person has a fair reporting of his or her credit details to interested parties when they research the person in question. When the target suffers from violations of what details should provide or how the credit report affects the person negatively, he or she may receive awards through damages in the case when successful.
- Fair Credit Reporting Act and Improper Use of Personal InformationThe information provided by the Fair Credit Reporting Act is not for misuse or misreporting of credit details to those researching the individual person. However, sometimes, violations of the FCRA occur and harm the individual by lowering the credit score or leading to a denial or credit after the misuse occurs.
- Second Circuit Says Sending "Robo" Texts Does Not Violate the Telephone Consumer Protection Act (TCPA)Last month, in Latner v.Mount Sinai Health System, Inc, the Second Circuit Federal Court of Appeals in New York City ruled that the Mount Sinai Health System did not violate the Telephone Consumer Protection Act (TCPA) by sending automated flu text messages to its patients within its own health care network.
- Car Dealership Dishonest Loan Application Tactics, Can I Report This?When contacting a car dealership for the first time, the individual may face illegal practices and unethical methods that attract and engage the person into buying or leasing a car. However, it is often that these processes cause the new owner financial difficulty when he or she cannot make the payments each month based on false wage details.
- What to Do When in Receipt of a Massachusetts G.L. 93A Consumer Protection Demand LetterMassachusetts has a very powerful and comprehensive consumer protection statute that allows consumers to file a lawsuit against a business for unfair and deceptive trade practices.
- Indiana Hotel Charges a Customer for Posting a Negative Online ReviewIn March of 2016, Katrina Arthur and her husband were guests at the Abbey Inn in Nashville, Indiana. In statements made to the press and to the hotel after their stay, the Arthurs said that they experienced problems at the hotel as soon as they arrived, noting that their hotel room was unkempt.
- All Civil Rights Law Articles
Articles written by attorneys and experts worldwide discussing legal aspects related to Civil Rights including: constitutional law, consumer law, discrimination, human rights, native populations, privacy law, public law and sexual harassment.
Consumer Law - US
- ABA - Consumer Protection Committee
The Consumer Protection Committee
- Aviation Consumer Protection Division
- Consumer Credit Protection Act
The United States federal wage garnishment law, widely known as the Consumer Credit Protection Act guards employees from discharge by their employers because their wages have been garnished in any one week.
- Consumer Product Safety Commission
The U.S. Consumer Product Safety Commission is charged with protecting the public from unreasonable risks of serious injury or death from thousands of types of consumer products under the agency's jurisdiction.
- Consumer Protection - Wikipedia
Consumer protection laws are designed to ensure fair competition and the free flow of truthful information in the marketplace.
- Consumer Rights and Protection
Consumer rights and responsabilities explained in the Lectric Law Library.
- Fair Credit Billing Act (FCBA)
The Fair Credit Billing Act (FCBA) is a United States federal law enacted as an amendment to the Truth in Lending Act (codified at 15 U.S.C. § 1601 et seq.).
- Fair Credit Reporting Act
The Fair Credit Reporting Act (FCRA) is a United States federal law that regulates the collection, dissemination, and use of consumer information, including consumer credit information.
- Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA), is a United States statute added in 1978 as Title VIII of the Consumer Credit Protection Act.
- Federal Trade Commission - Consumer Complaints
The Federal Trade Commission, the nation's consumer protection agency, collects complaints about companies, business practices, identity theft, and episodes of violence in the media.
- Food Safety and Inspection Service (FSIS)
The Food Safety and Inspection Service (FSIS) is the public health agency in the U.S. Department of Agriculture responsible for ensuring that the nation's commercial supply of meat, poultry, and egg products is safe, wholesome, and correctly labeled and packaged.
- FTC - Consumer Information
This section of the FTC website offers practical information on a variety of consumer topics. The information here can help you avoid rip-offs and exercise your consumer rights. Education is the first line of defense against fraud and deception; it can help you make well-informed decisions before you spend your money.
- National Consumer Law Center (NCLC)
NCLC is the nation’s consumer law expert, helping consumers, their advocates, and public policy makers use powerful and complex consumer laws on behalf of low-income and vulnerable Americans seeking economic justice.
Organizations For Consumer Law
- Association for Consumer Research
- Better Business Bureau
- Consumer Action
- Consumer Specialty Products Association (CSPA)
- Consumers International (CI)
- Federal Citizen Information Center (FCIC)
- National Association of Consumer Advocates (NACA)
- National Consumer Protection Week (NCPW)
- National Consumers League
- Organic Consumers Association (OCA)