Federal and State governments have enacted various laws and regulations to protect consumers. These laws provide general protection against business practices that would be considered fraudulent. To prove consumer fraud, you must provide evidence that:
- The person doing business with you made a false statement of “material fact”
- The person making the statement knew or believed his/her statement was false
- You relied on the false statement to your detriment
For example, an antique dealer tells you that a statue is valuable because it was made in Greece in the second century, knowing that it was made in the basement last week and is worth nothing. If you purchase the statue believing what the antique dealer said, the dealer has committed a fraud.
Consumer laws offer protection at every stage of the purchasing process. They take effect before the buyer pays the seller any money and can last until years after the sale, in some cases. If you understand your legal rights, you will be better prepared to make informed choices as a consumer.
In many States, the broad principles of common fraud have been enacted into specific consumer protection statutes, with State public agencies to enforce these statutes. Your State often enforces consumer law through a consumer affairs department.
Some States also have business-specific statutes that cover particular kinds of businesses practices in different industries.
State consumer fraud statutes cover businesses like:
- Mobile home sales
- Vehicle repairs and sales
- Travel agencies
- Storage of household goods
- Health club contracts
There are also private, volunteer groups, such as the Better Business Bureau which receive consumer complaints and conduct investigations of abusive business practices. These private groups can be an important source of information for you when you need to call on consumer protection laws.
TELEMARKETING
Telemarketing is a popular sales technique. Unfortunately, it is a practice that has raised numerous consumer complaints ranging from reports of annoying phone calls to charges of fraud. However, knowledge of the types of pitfalls that telemarketing can present to the consumer can help you avoid them. If you have already encountered a problem with a telemarketer or need more information about a particular telemarketer, there are several agencies that can assist you.
SWEEPSTAKES SCAMS
Many consumer fraud regulations are designed to protect consumers from sweepstakes scams. If someone contacts you and claims to have a prize “waiting for you,” you should know how to determine whether or not the call is legitimate. There are various hints that may suggest that the call is simply an attempt to take advantage of your excitement over having won the sweepstakes. In addition, you can contact organizations that specialize in determining the legitimacy of such calls.
PURCHASES MADE FROM HOME
If you are like most consumers today, you are probably making more purchases from home than ever. These include door-to-door, telephone and internet purchases. The nature of these transactions raises unique consumer rights issues. You might be entitled to certain legal protections that would otherwise be unavailable.
These sorts of purchases can implicate privacy concerns that have led to laws governing the use of the information you provide sellers. There are ways you can minimize the chances your privacy will be violated by individuals or companies that sell you products.
WARRANTIES ON CONSUMER PRODUCTS
Warranties are promises made by the seller or manufacturer when you buy consumer goods. In order to protect your purchases, you need to know the scope of your warranty, the period of coverage, and how to obtain service if it becomes necessary.
RETURNING MERCHANDISE
If you have purchased merchandise (or received unordered merchandise) and have decided to return it for whatever reason, there are certain rules with which you should be familiar. The reasons for your dissatisfaction may range from a defective product to your simply changing your mind. Regardless of the basis for your decision, certain rights are implicated.
In addition, if you need to write a complaint letter for any reason, you must include certain specific information in order to expect positive results. Further, if you encounter problems returning your merchandise, there are alternative dispute resolution processes that may be available to you.
You can personally enforce federal and State consumer protection laws by bringing a private lawsuit under the statutes. Many consumer protection statutes award attorney’s fees to consumers who win their lawsuits. Many consumer protection statutes also permit a judge to award triple the amount you actually lost, to encourage consumers to sue even when the actual individual damages may be low.
Business Law
