Consumer Fraud law deals with the regulation and enforcement of the advertising, marketing and selling of products and services. Consumer Fraud law generally says that companies, marketers and sellers may not deceive, make false statements, display any false pretenses, false promises or misrepresentation of merchandise. Consumer Fraud law will vary slightly from state to state but generally adheres to this explanation. Common examples of consumer fraud include investment fraud, insurance fraud and hurricane fraud.
The FTC, Federal Trade Commission, is the primary federal entity enforcing consumer fraud laws. There are specific federal acts that help the FTC govern consumer fraud laws and protect consumers, such as the Magnuson-Moss Warranty Act, which is the federal law that governs consumer product warranties. Passed in 1975, the Act requires manufacturers and sellers of consumer products to provide consumers with detailed information about warranty coverage. In addition, it affects both the rights of consumers and the obligations of warrantors under written warranties. Another act the FTC can use is the federal wage garnishment law, Consumer Credit Protection Act (CCPA), protects employees from discharge by their employers because their wages have been garnished for any one debt, and limits the amount of an employee’s earnings that may be garnished in any one week. It also for the first time, required creditors to state the cost of borrowing in a common language so that the consumer could figure out what the charges are, compare costs, and shop for the best credit deal. The Consumer Credit Protection Act was passed in 1968.
Consumer Fraud Claims
Consumer Fraud claims apply to anything a consumer purchases. Products, Services or Property that doesn’t work as advertised, marketed or sold is subject to consumer fraud litigation. Consumer fraud law protects the consumer and ensures that businesses operate ethically in the marketplace.
Consumer Fraud Lawsuits
Consumer Fraud comes in all shapes and sizes and cuts across just about all small business industries, from vehicle repair and sales, to insurance, to travel. Some of the most common types are credit card, insurance, bank fraud, loan fraud and identity theft.
There are many types of scams operating every day and the Internet has only helped to grow their presence. Commons scams include email scams, phising scams, payday loan scams, credit repair, sweepstakes, gift cards, travel scams, diet scams, work-at-home and employment.