LGS 200 chapter 24 lecture notes
LGS 200 chapter 24 lecture notes LGS 200 - 008
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LGS 200 - 008
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This 3 page Class Notes was uploaded by Conner Jones on Thursday April 21, 2016. The Class Notes belongs to LGS 200 - 008 at University of Alabama - Tuscaloosa taught by Charlye S. Adams in Summer 2015. Since its upload, it has received 13 views. For similar materials see Legal Environment of Business in Law and Legal Studies at University of Alabama - Tuscaloosa.
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Date Created: 04/21/16
LGS 200 lecture notes chapter 24: consumer protection deceptive advertising would reasonable customer be misled? o Puffery doesn’t count as deceptive advertising Bait and switch ads o Advertise for low price to lure customers in then buy more expensive items Online deceptive advertising o Online claims for medical and exercise equipment (ads for P90X) All ads must be truthful and not misleading, claims also must be substantiated meaning there needs to be evidence to back claims, ads also must be fair CAN-SPAM federal statute – must include your name, what you’re selling, unsubscribe button Telemarketing and fax ads o Telemarketing and Consumer Fraud and Abuse Prevention Act 1994: Requires telemarketers to identify themselves and not misrepresent facts Labeling and packaging laws Food labeling o Fair packaging and labeling act requires food product labels to identify: The product The net quantity of contents Manufacturer Packager/distributor Nutrition labeling and education act o Establishes standards of health terms like ‘gluten free’ Sales Door to door sales o The FTC and many states require that, for door to door sales, consumers have a “cooling off” period in which they can cancel purchase obligation Telephone and mail order sales o FTC requires notification of consumers when orders cannot be shipped on time and insure timely refunds when cannot be shipped o Postal reorganization act of 1970 – provides unsolicited merchandise sent by US mail may be retained, used, disposed of in any manner deemed appropriate Online sales o FTC brought a number of enforcement actions against deceptive online sales Protection of health and safety Federal food, drug, and cosmetic act o Protects against adulterated and misbranded foods and drugs o Ensures drugs are safe/effective Consumer product safety commission (CPSC) has broad regulatory authority over safety of consumer products o Do not cover: boats, aircrafts, motor vehicles, firearms Health care reforms o Expanded coverage for children and seniors o Controlling costs of health insurance Credit protection Truth in lending Act (TILA) – requires equal opportunity regardless of race, sex, age, etc.; requires you know what you are getting into before you sign loan; limits liability of stolen credit card purchases to $50 o company cannot retroactively increase interest rates o must provide 40-day notice before changing credit terms o monthly bills must be sent 21 days before due date o interest rate charged on customer’s credit card may not be increased o company may not charge over limit fees except in specified situations o if customer has balances at different interest rates, higher interest rates balances are paid off first o company may not compute finance charges based on previous billing cycle Fair credit reporting act – protects consumers against inaccurate credit reporting and requires lenders and creditors to correct errors Fair and accurate credit transactions act (FACT) – combats identity theft; requires major credit companies to provide free credit report Fair debt collection practices act – cuts down on debt collectors being assholes; like cannot call them at place of employment, inconvenient times, cannot call family, spouse, etc., cannot harass/intimidate Wage garnishment – if you owe someone and don’t pay them, they get a judgment against you you can file a wage garnishment Employer deducts from paycheck until you pay off judgment