20 FAQs About Consumer Protection Law You Should Know

General Consumer Protection

What is consumer protection law?

Answer: Consumer protection law refers to the laws and statutes that protect consumers from deceptive, unfair, or fraudulent business practices.

Who enforces consumer protection laws?

Answer: The Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB), and state consumer protection offices enforce these laws.

What is the Federal Trade Commission Act?

Answer: The FTC Act prohibits unfair or deceptive acts in commerce and empowers the FTC to investigate and prevent such practices.

What is the Consumer Financial Protection Bureau (CFPB)?

Answer: The CFPB oversees financial products and services, ensuring they are fair, transparent, and competitive.

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What are “unfair or deceptive acts”?

Answer: Practices that mislead consumers or are unethical, such as false advertising, hidden fees, or selling defective products.

Consumer Rights

What are consumer rights?

Consumers have a right to safety, information, choice, being heard, redress, and privacy, depending upon the applicable law.

What is the right to redress?

The right to seek remedies that include refunds, repairs, or replacements for defective goods or services.

Can I take back defective goods?

Yes. Under implied warranty laws, goods must be made good, replaced, or refunded within a reasonable time.

What is the Magnuson-Moss Warranty Act?

Answer: A federal law requiring written warranties on consumer products to be clear and enforceable.

What if I get scammed online?

Answer: Report the scam to the FTC, your bank or credit card company, and local law enforcement. You may also dispute fraudulent charges.

Advertising and Sales

What is false advertising?

Answer: Misleading claims about a product or service, including inaccurate prices, benefits, or availability.

What is bait-and-switch advertising?

Answer: A practice where a seller advertises a product at a low price but pressures consumers to buy a more expensive item.

Do businesses have to accept advertised prices?

Answer: Generally, yes. However, unintentional errors may not obligate a seller to honor a price if disclosed.

Can I cancel a purchase after signing a contract?

Answer: Federal laws, such as the Cooling-Off Rule, permit consumers to rescind specific contracts (for example, door-to-door sales) within three days.

What is the Telephone Consumer Protection Act (TCPA)?

Answer: A law that protects consumers from unwanted telemarketing calls, robocalls, and unsolicited text messages.

Credit and Debt

What are my rights under the Fair Credit Reporting Act (FCRA)?

Answer: The FCRA allows consumers to access and correct errors in their credit reports, and it restricts who may access credit information.

What is the Fair Debt Collection Practices Act (FDCPA)?

Answer: The FDCPA prevents abusive or deceptive practices by debt collectors, including harassment or false threats.

May I dispute an inaccurate credit report?

Answer: Yes, you can dispute errors with credit bureaus and the creditor under the FCRA.

What are predatory lending practices?

Answer: Unethical practices by lenders, such as charging excessive interest rates, misrepresenting loan terms, or targeting vulnerable consumers.

Can a business charge hidden fees?

Answer: No, businesses must disclose all fees transparently. Hidden fees may violate consumer protection laws.

Consumer Tips

Stay Informed: Know your rights under federal and state consumer protection laws.

Document Everything: Keep receipts, contracts, and correspondence in case of disputes.

Act Promptly: Report fraud or violations to appropriate agencies like the FTC, CFPB, or state attorney general.

Seek Legal Help: Consult a consumer protection attorney if your rights are violated.

Knowing these FAQs can help consumers protect themselves from fraud, seek remedies when wronged, and make informed decisions in the marketplace.

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