Chapter VI

• Legal laws protecting consumer rights

• Identify the various regulatory agencies

Reporter:
ELIVER L. LADRILLO

Professor:
Marites Calimoso Biaco,PhD.
• Legal laws protecting consumer rights

Consumer protection is the practice of

safeguarding buyers of goods and services, and
the public, against unfair practices in the 
marketplace. Consumer protection measures
are often established by law. Such laws are
intended to prevent businesses from engaging
in fraud or specified unfair practices in order to
gain an advantage over competitors or to
mislead consumers.
• Legal laws protecting consumer rights
The Following Legal laws protect Consumer Rights
are:
• Deceptive Trade Practice Statutes
• Debt Collection Statutes
• Banking and Credit Statutes
• Real Estate Statutes
• Products Liability Statutes
• Privacy Statutes
• Automobile Statutes
• Product Safety Statutes
• Legal laws protecting consumer rights

1.Deceptive Trade Practice Statutes

The Federal Trade Commission Act (FTCA), first
enacted in 1914, is an important federal consumer
protection statute. It created the Federal Trade
Commission (FTC), which is charged with enforcing
antitrust statutes and promoting consumer protection.
The FTC’s Bureau of Consumer Protection investigates
consumer complaints regarding deceptive trade
practices and other violations of consumer protection
statutes.
• Legal laws protecting consumer rights

2. Debt Collection Statutes

State and federal laws protect consumers from improper 
debt collection activities. The federal Fair Debt Collection Practices Act
 (FDCPA) broadly defines a “debt collector” as anyone using mail or
other instruments of interstate commerce to attempt to collect a debt,
through indirect or direct means, for another. It sets limits on the times
of day during which debt collectors may contact consumers, and it
requires them to cease communicating with consumers, except through
litigation, upon receipt of a written request. The FDCPA also provides a
30-day period during which the consumer may dispute the validity of
the debt and request verification.
• Legal laws protecting consumer rights

3. Banking and Credit Statutes

A person’s credit score has become a critically important piece of
information, which has an impact not only on his or her ability to
purchase a home or a car, but also on employment prospects in many
cases. Credit reporting agencies (CRAs) are private entities with little
transparency or oversight, so several statutes protect consumers against
false or inaccurate credit reporting. The Fair Credit Reporting Act (FCRA)
requires CRAs to provide consumers with information contained in their
files on that consumer, and to verify any information disputed by a
consumer. A 2003 amendment to the law, the 
Fair and Accurate Credit Transactions Act, allows consumers to obtain
one credit report every year, free of charge.
• Legal laws protecting consumer rights
4. Real Estate Statutes
The Real Estate Settlement Procedures Act (RESPA) prohibits certain
deceptive practices in real estate transactions, including payments of
kickbacks between real estate agents, construction companies,
mortgage brokers, and lenders. Lenders are required to provide a good-
faith estimate of a loan’s costs, similar to the disclosures required by
(TILA) Truth it Lending Act. A consumer purchasing real estate is also
entitled to a comprehensive statement, known as a HUD-1, showing
how the purchase price is to be disbursed at closing.
The HUD-1 Settlement Statement is a document that lists all
charges and credits to the buyer and to the seller in a real estate
settlement, or all the charges in a mortgage refinance.
• Legal laws protecting consumer rights

5. Products Liability
Most consumer protection statutes related to product safety are aimed at preventing
injuries from occurring. If a consumer is injured by a defective product, the common law
doctrine of products liability allows them to sue for damages. Most states recognize at
least three types of defects that could support a claim: a design defect, when a product
is inherently unsafe, a manufacturing defect, when the defect occurs during the
production process, or a marketing defect, when a product is advertised or promoted
for an improper use that causes an injury.
• Legal laws protecting consumer rights
6. Privacy Laws
The security of consumers’ personally identifiable information (PII) is critically
important as a means of guarding against identity theft and other forms of fraud.
Numerous statutes regulate how certain industries handle and store consumer PII. One
of the most comprehensive laws is the 
Health Insurance Portability and Accountability Act (HIPAA), which sets national
standards for medical recordkeeping in order to protect consumers’ “protected health
information.”
• Legal laws protecting consumer rights

7. Automobile Statutes
The Highway Safety Act of 1970 created the National Highway Traffic Safety
Administration (NHTSA), which is partly charged with enforcing consumer safety
laws with regard to automobiles. At the state level, lemon laws protect consumers
against false or misleading practices by used car dealers.
• Legal laws protecting consumer rights

8. Product Safety Laws

In addition to the FTCA, federal laws like the 
Consumer Product Safety Act (CPSA) and the Federal Food
and Drug Act (FFDA) require consumer products, particularly
food, drugs, and cosmetics, to meet various safety
standards. The Consumer Product Safety Commission and
the Food and Drug Administration enforce many of these
laws and regulations.
Different Regulatory Agencies
1. Consumer Financial Protection Bureau
(CFPB)
This regulatory agency's purpose is to protect consumers from
deceptive financial products. The Consumer Financial Protection
Bureau (CFPB) ensures consumers have the information needed to
select the best financial services, such as credit cards, student loans,
and mortgages.
2. Consumer Product Safety
Commission (CPSC)
The Consumer Product Safety Commission is
responsible for consumer product safety. In 1972,
Congress passed the Consumer Product Safety Act,
which gave the CPSC powers to protect individuals from
unsafe consumer products. They accomplish this task
through evaluating the safety of consumer products,
developing standards, and conducting research as it
pertains to safety. For example, the CPSC recently issued
a recall on folding lounge chairs because consumers
have reported falls when using them.
3. Federal Trade Commission
(FTC)
The Federal Trade Commission (FTC) was initially
created in 1914 as an agency that wielded a weapon
against antitrust. Eventually, the commission's powers
were enlarged to also protect consumers against false
advertising and fraud. There are many specific areas that
the FTC has targeted in respect to the protection of the
public.
4. Food and Drug Administration (FDA)
The Food and Drug Administration is responsible for the
safeguarding of public health by monitoring drugs,
medical devices, and cosmetics. The administration also
helps improve consumers' health through advancing drug
innovation. Lastly, they also protect our food supply. For
example, the FDA recently published a list of online
pharmacy websites that were selling fake drugs to
consumers.
5. National Highway Traffic Safety
Administration (NHTSA)
The National Highway Traffic Safety Administration
(NHTSA) was created by the U.S. Department of
Transportation in 1970 to protect consumers by reducing
death, injuries, and monetary losses through vehicle
accidents. It also plays a huge role in the investigation of
defects in motor vehicle design, equipment, and laws.
Lastly, the NHTSA provides training to communities to
educate drivers about driving drunk.
 The End
Thank You