Consumer law legal definition

Consumer Protection Law is a federal and state regulation that deals with sales and credit practices involving consumer goods. Such regulations prohibit and regulate fraudulent or unreasonable advertising and sales practices, product quality, credit financing and reporting, debt collection, leasing, and other aspects of consumer transactions.
The goal of the Consumer Protection Act is to make consumers of ordinary citizens engaged in commercial transactions (such as purchasing goods or borrowing money) on an equal footing with companies or citizens who regularly engage in commercial activities. Historically, it has been assumed that consumer purchases of goods or services used by individuals and households are fair, as it is assumed that buyers and sellers bargain from an equal position. Beginning in the 1960s, the legislature began responding to complaints from consumer advocates that consumers are inherently disadvantaged, especially when bargaining with large companies and industries. Several types of state and federal agencies and regulations are now working to protect consumers.
In 1972, Congress established the Consumer Product Safety Commission (CPSC). The CPSC’s role is to protect consumers from harmful or dangerous products by setting mandatory safety standards for consumers. The US Consumer Product Safety Commission (CPSC) reserves the right to ban the sale of products or recall products on the market (when the product is recalled, it is removed from the shelf or sales lot and the consumer can return it to the manufacturer or place of purchase for repair. Replace or refund). However, the agency is still unable to protect consumers from dangerous products that they do not know.
In recent years, the CPSC has become a victim of federal budget cuts. The reduction in agency legal staff has prompted the Consumer Product Safety Commission to increasingly rely on manufacturers to voluntarily recall their defective or dangerous products. If the manufacturer does not cooperate, the CPSC must take legal action that may take several years to resolve.
The Federal Trade Commission (FTC) is the largest federal agency dealing with consumer complaints and is responsible for regulating unfair or deceptive trade practices. Even local trade practices that are considered unfair or deceptive may be subject to FTC laws and regulations if they adversely affect interstate commerce.
In addition, each state has enacted consumer protection regulations based on the Federal Trade Commission Act (15 U.S.C.A. 45(a)(1)). These actions enable state attorneys, as well as general and private consumers, to sue for false or deceptive advertising or other unfair and harmful consumer actions. Many state regulations clearly state that courts should seek guidance to interpret state law with reference to federal law and FTC interpretation.
FTC standards for unfair consumer behavior or practices have changed over time. In 1964, the agency set standards for determining unfairness in the development of cigarette advertising and labeling rules. When an act (1) violates public law as defined by statutory law, common law or other aspects, it is considered unfair; (2) immoral, immoral, oppressive or immoral; (3) serious Injury to consumers. The FTC changed the standard in 1980. Nowadays, the major harm of consumers is the most important factor, and this alone may constitute an unfair practice. According to the Federal Trade Commission Act, this unfair practice is illegal unless the damage to the consumer is greater than to the consumer or the competition, or the consumer cannot reasonably avoid the damage. The FTC may still consider public policy standards, but only consider it if it is determined that there is significant harm. Finally, the FTC no longer considers whether behavior is immoral, immoral, oppressive or immoral.
Over time, the FTC has also defined the definition of fraudulent behavior or practices. Historically, an action is deceptive if it has a tendency or ability to deceive, and the FTC believes that the act has an impact on ignorant or credulous consumers. The official policy statement issued by the US Federal Trade Commission (FTC) in 1988 changed this definition: At present, a practice is deceptive if it may mislead consumers under reasonable circumstances and harm their interests.

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