Did you know that there are laws protecting every type of good, product, and service you consume? foods & commodities, the internet, banking services, telephone services, e.t.c are all examples of products under consumer protection laws
Consumer protection laws are measures made by the law to protect buyers from unfair and deceptive selling practices.it aims to protect individuals from business scams, thefts, hazardous products, and more.
As a consumer, being aware of consumer protection laws helps you to know your rights and know when to use a legal recourse if needed. So, here are 5 basic consumer protection laws you should know.
5 consumer protection laws
Table of Contents
Fair Credit Reporting Act (FCRA)
The Fair Credit Reporting Act controls and regulates credit collection agencies. The FCRA regulates and ensures the fairness, accuracy, and privacy of the consumers.
The FCRA helps consumers in the following ways;
- It gives you the right to access the credit information that any credit reporting agency has on you
- It gives you the right to be told if your credit information is used against you
- Restricts third-party access to your fILes, except for permissible purposes
- It gives you the right to dispute if the information on your credit is wrong
- It also lets you put a security freeze on your report. This prevents people from accessing it without your consent.
Federal Trade Commission Act (FCT)
The federal trade commission act covers rules and regulations on commerce and trade except for a few cases. The Federal trade commission act mission is mainly to protect consumers and competitors. It includes the implementation and enforcement of a variety of anti-trust laws and consumer laws.
- They enact strong and effective laws against fraudulent, deceptive, and unfair business practices
- Encourage consumer interest by sharing new findings with federal and state legislation
- Create and share educational programs for consumers and business growth
- Develop new policies to protect the consumer and business interest
Consumer Product Safety ACT
The Consumer Product Safety Act was enacted in 1972, and it aims to protect consumers from hazardous goods and products.
- Safeguard the public against the risk of injury from consumer products
- Create a safe uniform standard for consumer products and lessen conflicting state and local regulations.
- Evaluation of consumer products and safety
- Promote research and investigations into the causes and prevention of products hazardous to health
Federal Food, Drug, and Cosmetic Act(FCDA)
Federal Food, Drug, and Cosmetic act. the law oversees the quality standards of food, drugs, liquors, health products, and cosmetics sold in the state. They do the following
- Approve new drugs, certain health devices, and foods that are safe for human consumption
- Inspect industries and places where edible food items and products are manufactured or kept
- Regulate advertising for certain drugs and medical devices
- Approve regulations for product labelling and claims
Dodd-Frank Wall Street Reform and Consumer Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act was created to regulate the financial industry in society.it was created in the wake of the 2008 financial crisis, to prevent future occurrences. It created processes to enforce transparency and accountability of financial firms and to limit risk.
The Dodd-Frank Act does the following
- Creation of programs that prevents mortgage companies and creditors from taking advantage of consumers
- Providing several reforms to oversee all aspects of the financial system
- Establishment of financial bodies like the Financial Stability Oversight Council to enforce adherence to financial laws.
Importance of consumer laws
If there are no consumer laws, sellers can take advantage of the buyer. Consumer laws exist to make the marketplace a fairground for consumers and businesses.
Consumers
Consumers need to be fully aware and obtain unbiased information on the products and goods they intend to buy. This helps them to make choices that are best for them and avoid buying products that won’t serve their purpose. Consumer protection laws help increase consumer welfare by ensuring that businesses can be held accountable.
Businesses
Businesses with good customer services gain a good reputation and more people seek their services. Consumer protection laws help to keep businesses in check and make sure they are maintaining fair practice.
Economy
consumer protection enables a fairground for businesses to operate. This leads to economic growth and development.
Consumer protection laws are for the protection of your interest as a consumer. A violation of these laws can lead to a fine or even jail time. it could be something as common as deceptive advertising or false product information.
If you feel your rights are in violation, you can file a complaint with your local consumer protection office for legal redress.
