Consumer Protection

Consumer Rights and Laws

Do you know your consumer rights? Have you ever heard the phrase, “Caveat emptor?” It is Latin for “Let the buyer beware.” Consumers had little protection against unfair business practices until the 1960s. Did you know there was a Consumer Bill of Rights?

The Right to Safety
The Right to Be Informed
The Right to Choose
The Right to Be Heard
The Right to Redress
The Right to Consumer Education

Many government agencies offer consumers protection in various industries.

Banking: The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 in deposits.
Investments: The Securities and Exchange Commission (SEC) requires business to disclose financial information and oversees the securities market.
Borrowing: The Federal Trade Commission (FTC) regulates methods of competition, marketing practices, and credit reporting.
Buying goods and services: The Department of Agriculture (USDA) inspects and grades food; the Food and Drug Administration (FDA) approves new drugs, tests product for safety, and sets labeling guidelines; the Consumer Product Safety Commission (CPSC) enforces product standards and bans or recalls hazardous products; and the United States Postal Inspection Service (USPIS) investigates consumer problems pertaining to illegal use of the mail.

Consumer Complaints

Many public and private organizations exist for consumers to access when they need to file complaints. Most states have a consumer protection agency, or the state attorney general may handle consumer complaints. Many county and city governments have consumer protection offices as well. The Better Business Bureau (BBB) will take complaints against local businesses. The Internet enables consumers to file complaints online with the BBB, the government, or the business itself.

Consumer Legislation

Since the 1930s, Congress has passed many to laws to protect consumers from unsafe products and unfair or deceptive business practices.

Legislation and Primary Purpose
Legislation	Primary Purpose
Truth in Lending Act (Consumer Credit Protection Act)	Requires lenders to fully inform consumers about all costs of a credit purchase before an agreement is signed.
Fair Debt Collection Practices Act	Prohibits the use of threats, obscenities, and false and misleading statement to intimidate the consumer into paying
Fair Credit Reporting Act	Guarantees the right to know what is in your credit report and who has seen your file
Fair Housing Act	Prohibits discrimination by landlords and real estate companies based on race, color, religion, sex, national origin, familial status, or disability
Dodd-Frank Act	Promotes financial stability by improving accountability and transparency in the financial system, to end "too big to fail", to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes

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