Key Terms
Consumer law
Area of law covering consumer transactions — obtaining credit, goods, real property, or services for personal, family, o
Consumer protection laws
Laws designed to protect consumers against unfair trade and credit practices, faulty goods, and dangerous products.
General principle
Advertising must be honest. Applies to ALL sales media — print, electronic, social media, radio.
Definition
A material misrepresentation or omission likely to mislead a potential customer, and would mislead a reasonable customer
Definition (consumer law context)
Products deemed dangerous to the consuming public.
Debtor
Someone who owes an obligation — especially money — to another individual or business.
Credit bureau
Organization that maintains and distributes credit worthiness information to creditors, insurance companies, and employe
Three main credit bureaus
Equifax, Experian, Transunion.
Credit freeze
Consumer restricts or prohibits creditors from requesting their credit report without permission. Consumer may lift the
Error correction
Banks must investigate and correct errors within one business day.
Preauthorized transfer
Electronic fund transfer authorized in advance to recur at regular intervals (e.g., automatic monthly mortgage payment).
FTC estimates
At least 10 million consumers are victims of identity theft each year.
Steps consumers can take to minimize risk
1. Monitor bank accounts and credit/debit card charges; notify bank of unauthorized transactions immediately.
Fraud alert
Posted with credit bureaus; requires businesses to verify the identity of any applicant for credit before extending it.