Consumer Credit Protection Act
Consumer Credit Protection Act
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• FTC regulations several specific examples
of prohibited deceptive advertising such as
making expressly false statements in
– product quality,
– ingredients, or
Telephone Consumer Protection Act
Telemarketing/Consumer Fraud Prevention Act:
1) allows consumers to opt out of unwanted calls
2) bans the use of unsolicited recorded calls and
3) regulates 900 number calls,
4) prohibits telemarketers from making false
5) requires disclosure of all the material terms of
The Federal Odometer Act makes it a
crime to change vehicle odometers and
requires that faulty odometers be disclosed
in writing to potential buyers.
• Consumers have statutory protections related to
the quality and functionality of products sold by
• These protections are derived primarily from
commercial law statutes, which provide for
• Product liability statutes often operate in tandem
with tort laws related to negligence.
• In many cases a seller expressly
represents that the goods have certain
qualities or a certain level of efficiency.
• If the goods turn out not to have these
qualities, the buyer may sue for a breach
of the express warranty.
Even in cases where the seller makes no
express promise about the goods, the UCC
imposes several implied warranties.
• Applies to every sale of a product from a
merchant to a buyer (note that the buyer
may or may not be a merchant)
• Requires the seller to warrant that the
product is fit for its ordinary use
Fitness for a Particular Purpose
• In order for this warranty to be created, the
buyer must prove:
– seller knew of the buyer’s desire to use the
product in a specified way (not necessarily in
its ordinary way), and
– buyer relied on the seller’s advice and
• The UCC allows a seller to disclaim both
implied and express warranties under
• Seller must do so in a conspicuous writing
such as capital letters, bold print, or a
larger font that stands out.
Food and Drug Safety
• The Food, Drug and Cosmetic Act
(FDCA) created the U.S. Food and Drug
• Regulates testing, manufacturing, and
distribution of foods, medications, medical
devices, and cosmetics
Consumer Credit Regulation
• Consumer Credit Protection Act (CCPA)
regulates the following:
– disclosure of credit terms,
– credit reporting,
– antidiscrimination, and
– collection of debts from consumers.
• The Credit Card Accountability Responsibility and
Disclosure Act of 2009 (CARD Act)
• Increases the power and oversight authority of the
Federal Trade Commission over credit card issuers.
• CARD Act protects consumers from surprises when
interest rates increases or credit card fees are imposed,
and to restrict marketing and card-issuing practices
targeted to younger (18 to 21 years of age) consumers.
• The Fair and Accurate Credit
Transactions Act (FACT Act).
• Requires that credit bureaus stop reporting
any fraudulent account information once a
consumer alleges identity theft and during
an investigation period.
• Consumer Leasing Act (CLA)
• Covers lessors engaged in leasing or
those arranging leases for consumers
• CLA provisions mirror the protections for
consumer debtors in a loan transactions
such as APR disclosure requirements and
• Fair Credit Reporting Act (FCRA)
• Sets privacy rights for consumer credit
• Requires that the credit bureaus give
individual consumers complete and timely
access to their own credit reports.