Chapter 44 Consumer Law

A set of vocabulary flashcards covering the key federal and state statutes, agencies, and regulations concerning consumer protection, marketing, food and safety, and credit as detailed in Chapter 44.

Consumer law

The body of statutes, agency rules, and judicial decisions protecting consumers of goods and services from dangerous manufacturing techniques, mislabeling, unfair credit practices, deceptive advertising, and other similar practices.

Federal Trade Commission (F T C)

An agency created to carry out the goal of preventing unfair and deceptive trade practices, including deceptive advertising.

Deceptive advertising

Advertising that misleads consumers by making unjustified claims about a product’s performance or by omitting a material fact concerning the product’s composition or performance.

Puffery

Vague generalities and obvious exaggerations in advertising that are considered permissible rather than deceptive.

Half-truths

Advertisements that contain information that is true but incomplete, leading consumers to reach a false conclusion.

Telephone Consumer Protection Act (T C P A)

A law enforced by the Federal Communications Commission (F C C) that prohibits telephone solicitation using automatic dialing systems or prerecorded voices and prohibits unsolicited advertisements without an established relationship or permission.

T C P A Penalties

The F C C can impose fines of $\$11,000$ each day, and consumers can sue for $\$500$ per violation or actual monetary losses, which can be trebled for willful violations.

Telemarketing and Consumer Fraud and Abuse Prevention Act

A law that directed the F T C to establish rules governing telemarketing and to bring actions against fraudulent telemarketers.

Federal Food, Drug, and Cosmetic Act (F D C A)

Legislation that protects consumers against adulterated (contaminated) and misbranded foods and drugs, monitors food additives, and is enforced by the F D A.

Consumer Financial Protection Bureau (C F P B)

The federal agency that oversees the credit practices of banks, mortgage lenders, and credit-card companies.

Truth-in-Lending Act (T IL A)

Title I of the Consumer Credit Protection Act, which requires sellers and lenders to disclose credit and loan terms to natural persons to facilitate shopping for financing.

Equal Credit Opportunity Act (E C O A)

An amendment to the T IL A that prohibits credit denial based on race, religion, national origin, color, gender, marital status, age, or the receipt of public-assistance benefits.

T IL A Credit-Card Liability

A cardholder's liability is limited to $\$50$ per card for unauthorized charges made before the creditor is notified that the card is lost.

Fair Credit Reporting Act (F C R A)

Act protecting consumers against inaccurate credit reporting by requiring creditors to report correct, relevant, and up-to-date information.

Fair and Accurate Credit Transactions (FACT) Act

Legislation that established a national fraud alert system, requires truncation of account numbers on receipts, and provides free credit reports every $\text{twelve}$ months.

Fair Debt Collection Practices Act (F D C P A)

A statute that attempts to curb abuses by specialized debt-collection agencies and attorneys who regularly collect debts on behalf of someone else.