Business Law 20

Consumer Protection
deceptive advertising
Advertising that misleads consumers, either by making unjustified claims concerning a product's performance or by omitting a material fact concerning the product's composition or performance.
bait-and-switch advertising
Advertising a product a very attractive price (the bait) and then, once the consumer is in the store, saying that the advertised product either is not avaliable or is of poor quality. The customer is then urged to purchase (switched to) a more expensive item.
cease-and-desist order
An administrative or judicial order prohibiting a person or business firm from conducting activites that an agency or court has deemed illegal.
New advertising that is undertaken pursuant to a Federal Trade Commission order for the purpose of correcting earlier false claims that were made about a product.
multiple product order
An order issued by the Federal Trade Commission to a firm that has engaged in deceptive advertising by which the firm is required to cease and desist from false advertising not only in regard to the product that was the subject of the action but also in regard to all the firm's other products.
regulation z
A set of rules issued by the Federal Reserve Board of Governors to implement the provisions of the Truth-in-Lending Act.
"cooling-off" laws
Laws that allow buyers a period of time, such as three business days, in which to cancel door-to-door sales contracts.
validation notice
An initial notice to a debtor from a collection agency, required by federal law, informing the debtor that he or she has 30 days to challenge the debt and request verification.
Federal Trade Commission Act
made law in 1914. empowered a presidentally appointed comission, The Federal Trade Commission, to monitor interstate industries. expected to crush monopolies at the root by attacking unfair trade practices and unlawful competition. another Wilsonian progressive attack.
online deceptive advertising
The FTC has issued guidelines requiring that online advertising must (1) be truthful and not misleading, (2) not make any claims that cannot be substantiated, (3) not cause or be likely to cause substantial consumer injury that consumers cannot reasonably avoid, and (4) clearly and conspicuously disclose any qualifying or limiting information.
TCPA (Telephone Consumer Protection Act)
-prohibits telephone solicitation using an automatic telephone dialing system or a prerecorded voice
-prohibits transmitting ads via fax w/out first obtaining recipient's permission
ECA (energy and conservation act)
set corporate standards for informing gas mileage, manufacturers who failed to achieve the mandated averages faced stiff lines and other sanctions
FPLA (Fair Packaging and Labeling Act)
(1) the product,
(2) the net quantity of the contents,
(3) the manufacturer,
(4) the packager or distributor, and,
(5) if the package contains foodstuffs, various nutritional information
NLEA (Nutritional Labeling and Education Act)
gave the FDA additional muscle by setting stringer legal definitions for terms such as fresh, light, low fat and reduced calories. it also sets standard serving sizes and requires labels to show food value for one serving alongside the total recommended daily value.
FDCA (Food Drug Cosmetic Act)
-Required manufacturers to list ingredients in food, drugs, and cosmetics
-Gave the authority to USFDA to regulate food, drugs, and cosmetics
CPSA (Consumer Protection Safety Act)
created the consumer protection safety commission (CPSC)
-CPSC sets product safety standards
-requires disclosure of info regarding content, operation, and safety of products
Consumer Financial Protection Bureau
established as a result of the financial reform act 2010
responsible for regulating financial products and services, including online banking, CDs, and mortgages, credit cards
TILA (Truth-in-lending act)
it requires the person or business entity to disclose the exact credit terms when extending credit to applicants who are making four or more payments, requires that creditors disclose the cost of the credit in simple terms
ECOA (Equal Credit Opportunity Act)
prohibits the use of race, color, religion, national origin, marital status, age, receipt of public assistance, or exercise of any consumer right against a lender as a factor in determining creditworthiness
Credit Card Rules
TILA (1) limits a cardholder's liability for unauthorized charges made before the cardholder notifies the creditor that a card has been lost or stolen to $50 per card, (2) prohibits credit card companies from billing a consumer for unauthorized charges on a card improperly issued by the company, and (3) outlines specific procedures for both the consumer and the credit card company for resolving billing disputes.
FCRA (Fair Credit Reporting Act)
A federal law that established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant and properly used.
FACT (Fair and Accurate Credit Transaction Act)
(FACT Act) Amendment to the federal Fair Credit Reporting Act intended primarily to help consumers fight the growing crime of identity theft; includes provisions for fraud alerts and credit freezes.
FDCA (Fair Debt Collection Act)
Its purposes are to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy; applies to people who have consumer debts and to third-party companies that collect those debts. Conduct rules: hours for phone contact, failure to cease communication upon request, Communicating with consumers at their place of employment, Misrepresentation or deceit, threatening arrest or legal action, abusive or profane language, limited third party contact etc.
can-spam act
federal law effective in 2004 governing e-mails, bans fraudulent and deceptive e-mails. Requires all commercial mails to include a legitimate return email and physical address, notice of opp to opt out from future emails etc.