1. Chapter 30: Consumer Protection

2. Who is Protected?
Consumer protection statutes originally were meant to protect persons of limited means and knowledge.
Now, a consumer may be defined as any person or entity that uses goods or services.
Some consumer protection statutes have been expanded to protect all consumers.

3. Legal Environment of the Consumer
General Law
Contract Tort
Administrative
The Consumer
The Defendant
Consumer Protection Law
Advertising
Seals of Approval
Labeling
Selling Methods
The Consumer Contract
Credit Cards
Payments
Defense Preservation
Product Safety
Credit, Collection, and Billing Methods
Credit Standing and Reputation Protection Real Estate Sales
Service Contracts
Franchises

4. What is Prohibited? Consumer protection laws focus on:
false and misleading advertising;
misleading or false use of seals of approval
misleading or false labels; and
some methods of selling, through:
requiring the disclosure of terms,
regulating telemarketing sales,
permitting consumer cancellation of home-solicited sales, and,
in some states, prohibiting referral sales

5. Consumer Remedies
When a consumer protection statute is violated, an action may sometimes be brought by the consumer against the wrongdoer.
More commonly, an action is brought by an administrative agency or by the state attorney general.

6. Consumer Protection Laws
Included in consumer protection laws:
Payments must be applied to the oldest debts first.
Consumers may not waive their right to defenses in a a contract.
Standards for product safety are set.
Discrimination in the issuance of credit and improper collection methods are outlawed.
Consumer has the right to privacy and protection from false information in credit reports.

7. Credit, Collection & Billing Methods

8. Types of Protections
The consumer is protected in a contract agreement by:
regulation of its form,
prohibition of unconscionable terms, and
limitation of the credit that can be extended to a consumer.
Credit card protections include:
prohibition of the unauthorized distribution of credit cards,
prohibition of surcharge for use of credit cards,
limited liability of the cardholder for the unauthorized use of a credit card.

9. Newer Consumer Protections
In some cases of real estate development sales, stricter standards of disclosure apply.
Some service contracts are treated like a consumer sale of goods.
Franchisors must give prospective franchisees a disclosure statement before contracting.
Lemon laws provide special protection to buyers of automobiles for personal, household, or family use.