Key Terms
Consumer law
Area of law covering consumer transactions — credit, goods, real property, services for personal, family, or household u
Consumer protection laws
Designed to protect consumers against unfair trade and credit practices, faulty goods, and dangerous products. Goal is t
General principle
Advertising must be honest. Consumers must be able to make informed decisions based on what products and services actual
Applies to ALL sales media
Print, electronic, social media, radio.
Cooling off period
Consumers have three days to cancel purchases from door-to-door salespeople without penalty. Purpose: protects consumers
Exception to the cooling off period
When services are immediately rendered. If a service is performed at the moment the consumer consents (lawn aeration, sn
Unsolicited mail goods
If a consumer receives goods they did not order, they can treat them as a gift and are not required to pay for them.
Puffery
A broad promotional statement not intended to be taken literally. It is an exaggerated opinion — "the best," "most popul
Deceptive advertising
A material misrepresentation or omission likely to mislead a potential customer — and that would mislead a reasonable cu
Bait and switch
Seller advertises a low-priced product to lure consumers in, then induces them to buy a higher-priced product. The adver
Resource for consumers
SaferProducts.gov (established by the Consumer Product Safety Commission).
Debtor
Someone who owes an obligation to another person or business, especially the obligation to pay money.
Passed
1978 Purpose: prevent abusive debt collection practices.
NOT apply to
Commercial credit transactions.
Marital/welfare status nuance
May be considered ONLY to the extent it relates to creditworthiness (e.g., joint marital assets and debts are relevant).