LGS chapter 24 and half of 26
LGS chapter 24 and half of 26 LGS 200
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This 3 page Class Notes was uploaded by Paget Kern on Friday April 22, 2016. The Class Notes belongs to LGS 200 at University of Alabama - Tuscaloosa taught by Mr. Brian Turner in Winter 2016. Since its upload, it has received 9 views. For similar materials see Legal Studies Honors/ Legal Environment of Business in Business at University of Alabama - Tuscaloosa.
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Date Created: 04/22/16
Chapter 24 Consumer protection Laws Deceptive Advertising o Reasonable consumer would be mislead Puffery: salesmen talk, exaggerations, but not deceptive Claim’s based on half-truths Called in by FTC o Bait and Switch Ad Use a low price to lure a customer, but refuse to show this item, only sell a more expressive product Only one low price item in stock Messing with convenience, discourage purchase of lower price item o Online Deceptive Advertising FTC monitors websites for deceptive claims Sometimes *disclaimer saying “these results aren’t typical” Looking for All ads online and offline but be truthful and not misleading Claims must be sustained and have evidence Ads cannot be unfair, no confusion or monetary injury Clear and conspicuous Disclosure Any disclaimers, make obvious to consumer The impression of the ad is key SPAM advertising CAN-SPAM federal stature Prevent those who send spam, commercial emails, cannot mislead recipients and give them a chance to unsubscribe Unsubscribe has 10 days to take your name off of any list of solicitors FTC can Issue complaints Issue cease and desist orders Restitution Possible: pay back consumers that were deceived o Can take to district court federally o Telemarketing and Fax Ads TCPA: prohibits telephone solicitations using automated dialing system or prerecorded voice 1994 telemarketing and consumer fraud and abuse prevention act Telemarketers have to identify themselves and tell the honest facts No not call registry: type in phone number, telemarketers were supposed to never call you again Amended to enter you cell phone number Labeling and Packaging Laws o Labeling must be easily understood by any consumer o Ingredients, warning, etc o Fuel economy labels on cars EPA issues fuel economy labels for new cars Says price, mileage, city, etc… o Food Labeling Act: requires food product labels identify Product Net quantity of contents Servings and serving size Manufacturer Packager/ distributor Saving claims, components of nonfood products, and partial filling o Food labeling Nutritional content of food products Requires ingredients and standard nutrition facts Descriptions i.e. “fresh” “organic” “low fat” are regulated by FDA and USDA Caloric content and restaurant foods Obamacare: chain restaurant with 20 or more stores are required to post calories of their foods o Door to door Sales FTC and states require that consumers have a post-sale “cooling-off” period during which they can cancel their purchase without obligations Typically 3 business days after purchase to change mind o Telephone and mail order sales Required to ship products as they stated Notify consumers when orders cannot be shipped on time Issuance of refunds when orders can’t be shipped Postal reorganization Act Received unsolicited merchandise in the mail, you ca keep it and do whatever you want with it without payment o Online sales No deceptive online sales Required explicit refund and return policies Federal Food, Drug, and Cosmetic Act o Protect consumers from contaminated and misbranded foods and drugs o Cosmetics are required to include ingredients on packaging o Have to ensure products are safe before marketing to the public Consumer product Safety Act o CPSC can regulate any consumer product, but no authority over guns, airplanes, or vehicles Set safety standards Ban maufactuere and sale of products that have an unreasonable risk to consumers Remove and products from the market that have been immediately hazardous Require manufacturers to report on sold products that have been proved hazardous Administer other product-safety legislation Health care reforms o Coverage for children and Seniors o Controlling costs of Health insurance
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