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Consumer protection is a group of laws and organizations designed to ensure the rights of consumers as well as fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors; they may also provide additional protection for the weak and those unable to take care of themselves. Consumer protection laws are a form of government regulation, which aim to protect the rights of consumers. For example, a government may require businesses to disclose detailed information about products—particularly in areas where safety or public health is an issue, such as food. Consumer protection is linked to the idea of consumer rights, and to the formation of consumer organizations, which help consumers make better choices in the marketplace and get help with consumer complaints.

Other organizations that promote consumer protection include government organizations and self-regulating business organizations such as consumer protection agencies and organizations, the Federal Trade Commission, ombudsmen, Better Business Bureaus, etc.

A consumer is defined as someone who acquires goods or services for direct use or ownership rather than for resale or use in production and manufacturing.

Consumer interests can also be protected by promoting competition in the markets which directly and indirectly serve consumers, consistent with economic efficiency, but this topic is treated in competition law.

Consumer protection can also be asserted via non-government organizations and individuals as consumer activism.

Consumer law

Consumer protection law or consumer law is considered an area of law that regulates private law relationships between individual consumers and the businesses that sell those goods and services. Consumer protection covers a wide range of topics, including but not necessarily limited to product liability, privacy rights, unfair business practices, fraud, misrepresentation, and other consumer/business interactions.

It's a way of preventing fraud and scams from occ service and sales contracts, bill collector regulation, pricing, utility turnoffs, consolidation, personal loans that may lead to bankruptcy.

Australia

In Australia, the corresponding agency is the Australian Competition and Consumer Commission or the individual State Consumer Affairs agencies. The Australian Securities and Investments Commission has responsibility for consumer protection regulation of financial services and products.

Germany

A minister of the federal cabinet is responsible for consumer rights and protection (Verbraucherschutzminister). In the current cabinet of Angela Merkel, this is Ilse Aigner.

When issuing public warnings about products and services, the issuing authority has to take into account that this affects the supplier's constitutionally protected economic liberty (article 12 Basic Law, see Bundesverwaltungsgericht (Federal Administrative Court)Case 3 C 34.84, 71 BVerwGE 183).

India

In India,theConsumer Protection Act of 1986 is the law governing consumer protection. Under this law, Separate Consumer Dispute Redressal Fora have been set up throughout India in each and every district in which a consumer can file his complaint on a simple paper with nominal court fees and his complaint will be decided by the Presiding Officer of the District Level. Appeal could be filed to the State Consumer Disputes Redressal Commissions and after that to the National Consumer Disputes Redressal Commission (NCDRC). The procedures in these tribunals are relatively less formal and more people friendly and they also take less time to decide upon a consumer dispute when compared to the years long time taken by the traditional Indian Judiciary. In recent years, many effective judgement have been passed by some state and National Consumer Forums.

Republic of China (Taiwan)

Modern Chinese law has been heavily influenced by European civil law systems, particularly German and Swiss law. The Republic of China Civil Code contains five books: General Principles, Obligations, Rights over Things, Family, and Succession. The second book of the Code, the Book of Obligations, provided the basis from which consumers could bring products liability actions prior to the enactment of the CPL.

The Consumer Protection Law (CPL) in the Republic of China (Taiwan), as promulgated on January 11, 1994 and effective on January 13, 1994, specifically protects the interests and safety of customers using the products or services provided by business operators. The Consumer Protection Commission of Executive Yuan serves as an ombudsman supervising, coordinating, reporting any unsafe products/services and periodically reviewing the legislation.

According to the Pacific Rim Law & Policy Association and the American Chamber of Commerce, in a 1997 critical study, the law has been criticised "Although many agree that the intent of the CPL is fair, the CPL's various problems, such as ambiguous terminology, favoritism towards consumer protection groups, and the compensation liability defense, must be addressed before the CPL becomes a truly effective piece of legislation that will protect consumers"

United Kingdom

The United Kingdom, as member state of the European Union, is bound by the consumer protection directives of the EU. Domestic (UK) laws originated within the ambit of contract and tort but, with the influence of EU law, it is emerging as an independent area of law. In many circumstances, where domestic law is in question, the matter judicially treated as tort, contract, restitution or even criminal law.

Consumer Protection issues are dealt with when complaints are made to the Director-General of Fair Trade. The Office of Fair Trading will then investigate, impose an injunction or take the matter to litigation. However, consumers cannot directly complain to the OFT. Complaints need to be made to the Citizens Advice Consumer Service (which has taken over from Consumer Direct) who will provide legal advice to complainants, or re-direct the individual complaint to Trading Standards for investigation. Due to restrictions within the Enterprise Act 2002, individual complainants are unable to be told whether their case is being investigated or not. In very rare cases, Consumer Direct may direct a very large number of complaints to the OFT to be considered as a systemic complaint. The OFT can also be engaged by consumer groups e.g. The Consumers Association or the statutory consumer protection body – Consumer Focus – via a super complaint. The OFT rarely prosecute companies, however, preferring a light touch regulation approach. Consumer complaints against companies are not published, but investigation work, undertakings and enforcements are located at. Many of the consumer protection laws e.g. Distance Selling Regulations 2000 or Unfair Terms in Consumer Contracts Regulations 1999 (14 years ago) are actually UK implementations of EU directives. The OFT is one of the bodies responsible for enforcing these rules. This leads to a problem in that these examples of legislation are clearly designed to deal with individual complaints but the OFT will only deal with systemic complaints and will ignore individual complainants redirecting them back to Consumer Direct.

The Office of Fair Trading also acts as the UK's official consumer and competition watchdog, with a remit to make markets work well for consumers, and at a local, municipal level by Trading Standards departments. General consumer advice can be obtained from the Citizens Advice Consumer Service or via a local branch of the Citizen's Advice Bureau.

United States

In the United States a variety of laws at both the federal and state levels regulate consumer affairs. Among them are the federal Fair Debt Collection Practices Act, the Fair Credit Reporting Act, Truth in Lending Act, Fair Credit Billing Act, and the Gramm-Leach-Bliley Act. Federal consumer protection laws are mainly enforced by the Federal Trade Commission, the Consumer Financial Protection Bureau, and the U.S. Department of Justice.

At the state level, many states have adopted the Uniform Deceptive Trade Practices Act including, but not limited to, Delaware, Illinois, Maine, and Nebraska. The deceptive trade practices prohibited by the Uniform Act can be roughly subdivided into conduct involving either a) unfair or fraudulent business practice and b) untrue or misleading advertising. The Uniform Act contains a private remedy with attorneys fees for prevailing parties where the losing party "willfully engaged in the trade practice knowing it to be deceptive". Uniform Act §3(b). Also, the majority of states have a Department of Consumer Affairs devoted to regulating certain industries and protecting consumers who use goods and services from those industries. For example, in California, the California Department of Consumer Affairs regulates about 2.3 million professionals in over 230 different professions, through its forty regulatory entities. In addition, California encourages its consumers to act as private attorneys general through the liberal provisions of its Consumers Legal Remedies Act,

California has the strongest consumer protection laws of any US state, partly because of rigorous advocacy and lobbying by groups such as Utility Consumers' Action Network, Consumer Federation of California and Privacy Rights Clearinghouse.

Other states have been the leaders in specific aspects of consumer protection. For example Florida, Delaware and Minnesota have legislated requirements that contracts be written at reasonable readability levels as a large proportion of contracts cannot be understood by most consumers who sign them.

Constitutional laws

46 national constitutions currently in place include some sort of consumer right.

Laws

• Competition law

United Kingdom

• Unfair Contract Terms Act 1977
• Sale of Goods Act 1979
• Consumer Protection Act 1987
• Unfair Terms in Consumer Contracts Regulations 1999
• Consumer Protection (Distance Selling) Regulations 2000
• Electronic Commerce Regulations 2002
• Enterprise Act 2002
• General Product Safety Regulations 2005
• Consumer Protection from Unfair Trading Regulations 2008

United States

• Consumer Product Safety Act – gives the Consumer Product Safety Commission the power to develop safety standards and pursue recalls for products
• Federal Trade Commission Act – created the Federal Trade Commission (FTC) to prevent unfair competition, deceptive acts, regulate trade, etc.

Privacy laws

• United States National Do Not Call Registry – allows US consumers to limit telemarketing calls they receive.

Food and drug

• Pure Food and Drug Act – led to the creation of the U.S. Food and Drug Administration (FDA) to regulate foods, drugs, and more.

Communications

• Communications Act of 1934 – created the Federal Communications Commission (FCC) to regulate all radio and interstate cable, phone, and satellite communications.

Banking

• Fair Credit Reporting Act (FRCA) – regulates the collection, dissemination, and use of consumer credit information
• Fair Debt Collection Practices Act (FDCPA) – eliminates abusive consumer practices, ensure fairness, etc.
• Truth in Lending Act (TILA) – requires clear disclosure of key terms of the lending arrangement and all costs.

Real estate

• Real Estate Settlement Procedures Act (RESPA) – prohibits kickbacks and requires lenders to provide a good faith estimate of costs

Health insurance

• Health Insurance Portability and Accountability Act (HIPAA) – provides consumer protection for health information

Digital media

• Digital Millennium Copyright Act – prohibits production or sale of devices or services intended to circumvent copyright measures.
• Digital Media Consumers' Rights Act (proposed) – would repeal the Digital Millennium Copyright Act

Australia

• The Australian Consumer Law
• Division 2 of Part 2 of the Australian Securities and Investments Commission Act 2001 in relation to financial services and products

See also

Consumer issues

• Airline complaints
• Antitrust
• Better Business Bureau
• Class action
• Competition policy
• Competition regulator
• Consumer complaint
• Cooling-off period
• Credit and debt
• Extended warranty
• Fairtrade labelling
• Federal Trade Commission
• Food safety
• Mandatory labelling
• Ombudsman
• Online Complaint Management System
• Planned obsolescence
• Proconsumer WOM
• Product recall
• Telephone Consumer Protection Act
• Transparency (market)
• Unfair competition

People

• Curtis Arnold
• Florence Kelley
• Ralph Nader
• Phil Radford
• Robert Ellis Smith
• Michael Vernon

References

1. "West Encyclopedia of American Law. Consumer. Answers.com. n.d.. Retrieved on January 31, 2010"
2. V. Balakrishna Eradi, "Consumer Protection and National Consumer Disputes Redressal Commission". New Delhi: National Consumer Disputes Redressal Commission. Accessed 25 June 2013.
3. Taiwan Consumer Protection Law,, citing Laws & Regulations Database of the Republic of China,
4. Carol T. Juang, "The Taiwan Consumer Protection Law: Attempt to Protect Consumers Proves Ineffective" Pacific Rim Law & Policy Association, 1997.
5. U.K. Office of Fair Trading, , 2013.
6. U.K. Office of Fair Trading, "Consumer Enforcement", 2013.
7. State by state list of consumer affairs divisions of state attorney general offices
8. Lewis D. Eigen, "A Solution to the Problem of Consumer Contracts That Cannot be Understood by Consumers Who Sign Them", Scriptamus, 2009.
9. Comparative Constitutions Project (Elkins, Ginsburg, Melton)
10. Australian Securities and Investments Commission, Australian Securities and Investments Commission Act 2001.

Further reading

• Klein, Daniel B. (2008). "Consumer Protection". In David R. Henderson (ed.) (ed.). Concise Encyclopedia of Economics (2nd ed.). Indianapolis: Library of Economics and Liberty. ISBN 978-0865976658. OCLC 237794267. {{cite encyclopedia}}: |editor= has generic name (help)
• Mańko, Rafał. "The notion of 'consumer' in EU law" (PDF). Library Briefing. Library of the European Parliament. Retrieved 6 May 2013.

External links

• Consumers International
• Health-EU Portal Consumer Safety in the EU
• OECD Consumer Policy Toolkit Report
• About Econsumer.gov, a portal for consumers to report complaints concerning online and related transactions with foreign companies
• International Consumer Protection and Enforcement Network (ICPEN)

• Consumer protection
• Consumer protection law