Transcript Consumer Protection Laws

Consumer Protection Laws
Goals
• Know consumer rights and responsibilities
• Know state and federal policies and laws
providing consumer protection
Rights
• Right to:
▫ safety
▫ be informed
▫ choose
▫ be heard
▫ to redress
▫ consumer education
▫ service
Responsibilities
• Responsibility to:
▫ use products safely
▫ use information
▫ choose carefully
▫ speak up
▫ seek redress
▫ learn
▫ reward good service
Consumer Credit Protection Act
• This law requires truth in lending
• Consumers must be told exactly what the credit
charge is on a purchase or loan
• Creditors must report these charges in a uniform
way
• Credit costs must be stated both in dollars and
cents and as an annual percentage rate
Fair Packaging and Labeling Act
• This statute requires truth in packing
• It is designed to help consumers compare
goods
• The act requires that certain facts be
printed clearly on packaging
▫ including net contents, size of serving, list of
ingredients in order of decreasing weight,
etc.
Food, Drug, and Cosmetic Act
• This law is designed to assure
consumers of the safety, purity, and
wholesomeness of food products
• It also covers the safety and
effectiveness of drugs and cosmetics
• The act requires that these products
be informatively labeled and
truthfully advertised
Automobile Information Disclosures Act
• This act helps consumers compare new
automobiles
• It requires that manufacturers label each car,
listing its suggested retail price, the price of any
extras, and the total price
Child Protection and Toy Safety Act
• The purpose of this act is to protect
children from dangerous goods, including
toys
• The act bans the shipment and sale of
such dangerous items from state to state
▫ http://www.cpsc.gov/
Federal Hazardous Substances
Labeling Act
• This statute requires warning
labels on all products that might
be hazardous
• The labels must list such things
as precautions for use and firstaid procedures in case of
accident
Textile Fiber Products Identification Act
• This law helps consumers compare
textiles and fabrics
• It requires that labels list:
▫ fiber content by weight (expressed
as a percent of total weight)
▫ manufacturer’s name and address
▫ family name of the fiber
▫ and similar items
Fair Credit Billing Act
• This act sets out a procedure for
consumers to follow in having
billing errors corrected
Warranty-Federal Trade Commission
Improvement Act
• The purpose of this act is to protect
the consumer from warranties not
carried out
• The act sets minimum standards for:
▫ written warranties, rules for making
them available before a product is sold
▫ provisions for class-action suits if they
are not fulfilled
Equal Credit Opportunity Act
• This act protects people who
apply for credit from
discrimination based on sex,
marital status, age, race, color,
religion, national origin, or
receipt of public assistance