chapter 30: consumer protection
DESCRIPTION
Chapter 30: Consumer Protection. Who is Protected?. Consumer protection statutes originally were meant to protect persons of limited means and knowledge. Now, a consumer may be defined as any person or entity that uses goods or services. - PowerPoint PPT PresentationTRANSCRIPT
Comprehensive Volume, 18th Edition
Chapter 30: Consumer Protection
ChapterChapter
3030
Who is Protected?
Consumer protection statutes originally were meant to protect persons of limited means and knowledge.
Now, a consumer may be defined as any person or entity that uses goods or services.
Some consumer protection statutes have been expanded to protect all consumers.
ChapterChapter
3030
Legal Environment of the ConsumerGeneral LawContract Tort
Administrative
Consumer Protection LawAdvertising
Seals of ApprovalLabeling
Selling MethodsThe Consumer Contract
Credit CardsPayments
Defense PreservationProduct Safety
Credit, Collection, and Billing MethodsCredit Standing and Reputation Protection
Real Estate SalesService Contracts
Franchises
The DefendantThe Consumer
ChapterChapter
3030
What is Prohibited?
Consumer protection laws focus on:false and misleading advertising; misleading or false use of seals of approval misleading or false labels; andsome methods of selling, through:
• requiring the disclosure of terms,• regulating telemarketing sales,• permitting consumer cancellation of home-
solicited sales, and, • in some states, prohibiting referral sales
ChapterChapter
3030
Consumer Remedies
When a consumer protection statute is violated, an action may sometimes be brought by the consumer against the wrongdoer.
More commonly, an action is brought by an administrative agency or by the state attorney general.
ChapterChapter
3030
Consumer Protection Laws
Included in consumer protection laws:Payments must be applied to the oldest debts first.
Consumers may not waive their right to defenses in a a contract.
Standards for product safety are set.
Discrimination in the issuance of credit and improper collection methods are outlawed.
Consumer has the right to privacy and protection from false information in credit reports.
ChapterChapter
3030
Credit, Collection & Billing Methods
Credit D iscrimination Correction of Errors Improper Collection Methods
Unlawful to discriminate onthe basis of race, color,religion, national origin, sex,marita l status, and age.
Consumer should send thecreditor a written statementand explanation of the error.
Cannot send bills that give the impress ion that alawsuit has been begun against the consumer.
Unlawful to discriminatebecause income is obtainedfrom a public ass istanceprogram.
Cannot imply that a bill is legal process or awarrant issued by court.
Unlawful to discriminatebecause applicant has in goodfaith exercised any rightunder the Consumer CreditProtection Act.
Creditor must investigate andmake a prompt written replyto the consumer.
Usually cannot inform the employer of a debtorthat the latter owes money.
ChapterChapter
3030
Types of ProtectionsThe consumer is protected in a contract agreement by:
regulation of its form, prohibition of unconscionable terms, and limitation of the credit that can be extended to a consumer.
Credit card protections include:prohibition of the unauthorized distribution of credit cards,prohibition of surcharge for use of credit cards, limited liability of the cardholder for the unauthorized use of a credit card.
ChapterChapter
3030
Newer Consumer Protections
In some cases of real estate development sales, stricter standards of disclosure apply.
Some service contracts are treated like a consumer sale of goods.
Franchisors must give prospective franchisees a disclosure statement before contracting.
Lemon laws provide special protection to buyers of automobiles for personal, household, or family use.