Consumer protection laws and regulations that govern how businesses must treat customers, from an intro business law course.
30 cards · basic cards · AI-written, checked twice. Edit anything.
- What does the FTC Act prohibit?
- Unfair or deceptive acts and practices in commerce
- What is an 'unfair practice' under the FTC Act?
- One that causes substantial consumer injury not reasonably avoidable by consumers, and its benefits do not outweigh the injury
- What is a 'deceptive practice' under the FTC Act?
- A representation or omission likely to deceive a reasonable consumer in a material way
- What is the primary purpose of the Truth in Lending Act (TILA)?
- To ensure clear and conspicuous disclosure of credit terms and the true cost of credit
- What must a creditor disclose under TILA?
- Annual percentage rate (APR), finance charges, payment schedule, and total amount to be financed
- What is the purpose of the Fair Credit Reporting Act (FCRA)?
- To regulate how credit bureaus and other entities collect, maintain, and use consumer credit information
- What rights does a consumer have under the FCRA?
- The right to access their credit report, dispute inaccuracies, and limit how long negative information remains
- What does the Equal Credit Opportunity Act (ECOA) prohibit?
- Discrimination in credit transactions based on race, color, religion, national origin, sex, marital status, or age
- What is the Fair Debt Collection Practices Act (FDCPA) designed to prevent?
- Abusive, unfair, and deceptive practices by third-party debt collectors
- What practices are prohibited under the FDCPA?
- Threats, harassment, false statements, contacting at unreasonable hours, and contacting the debtor at work if the collector knows the employer prohibits it
- What does the Magnuson-Moss Warranty Act require?
- Warranties must be clearly written in plain language and must disclose the scope and limitations of coverage
- What is the role of the Consumer Product Safety Commission (CPSC)?
- To set and enforce safety standards for consumer products and protect the public from unreasonably hazardous products
- What powers does the CPSC have regarding unsafe products?
- The authority to issue recalls, ban products, require warning labels, and set performance and safety standards
- What is a lemon law?
- A law that protects consumers who purchase vehicles with defects affecting safety, use, or value within the warranty period
- What is a 'cooling-off period'?
- The right to cancel certain purchases within a specified time frame, typically three business days, without penalty
FlashKeepers