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LGS chapter 24 and half of 26

by: Paget Kern

LGS chapter 24 and half of 26 LGS 200

Marketplace > University of Alabama - Tuscaloosa > Business > LGS 200 > LGS chapter 24 and half of 26
Paget Kern

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About this Document

Consumer protection laws and half of real estate laws
Legal Studies Honors/ Legal Environment of Business
Mr. Brian Turner
Class Notes
LGS 200, Legal Environment of business, Legal Studies
25 ?




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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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