Slide 1Consumer LawConsumer LawConsumer LawConsumer LawConsumer LawConsumer LawCredit ProtectionCredit ProtectionCredit ProtectionCredit ProtectionCredit ProtectionCredit ProtectionCredit ProtectionCredit Protection© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.Business Law Today 10th Ed.Text and Summarized CasesDiverse, Ethical, Online and Global EnvironmentRoger LeRoy MillerGaylord JentzChapter 40 Consumer and Environmental Law(AVTG/iStockphoto.com)© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.CONSUMER LAW© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.CONSUMER LAW•Deceptive Advertising.Occurs if a reasonable consumer would be misled by the advertising claim.Puffery: Vague generalities and obvious exaggerations are permissible and not considered deceptive.Half-Truths: information is true, but incomplete.© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.CONSUMER LAW•Deceptive Advertising.Bait and Switch Ads: the advertising of a product at an attractively low price to lure customers in to buy more expensive items. © 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.CONSUMER LAW•Deceptive Advertising.Online Deceptive Ads: same rules apply. To satisfy the “clear and conspicuous” requirement, disclosures must be close (only hyperlink if lengthy). © 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.CONSUMER LAW•Deceptive Advertising.Federal Trade Commission (FTC) Actions. The FTC can:•Issue cease and desist orders. With respect to a particular product or advertisement.•With regard to multiple product orders. •Impose counter-advertising.© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.CONSUMER LAW•Telemarketing Sales Rule.FTC’s TSR requires a telemarketer to identify the seller, described the product being sold, and disclose all material facts related to the sale.Do Not Call registry.© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.CREDIT PROTECTION•Consumer Credit is protected by:Truth in Lending Act.Fair Credit Reporting Act.Fair Debt Collection Practices Act.Wage Garnishment.© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.CREDIT PROTECTION•Truth-in-Lending Act.TILA is basically a disclosure law. Requires all consumer lenders to compute the cost of a loan the same way and to advertise it as an Annual Percentage Rate (APR). © 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.CREDIT PROTECTION•Truth-in-Lending Act.Equal Credit Opportunity: requires that credit be extended without regard to race, sex, color, national origin, age, or marital status.© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.CREDIT PROTECTION•Truth-in-Lending Act.Credit Card Rules: limits consumer liability to $50 for credit card debt in cases of stolen cards.Amendments to Credit-Card Rules (2010).© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.CREDIT PROTECTION•Fair Credit Reporting Act.Limits the activities of credit reporting agencies.Consumers have the right to access information contained about them in a credit reporting agency’s files and to require credit reporting agencies to delete unverifiable information in a consumer’s credit record.© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.CREDIT PROTECTION•FACT: combat identity theft.Created the National Fraud Alert system so that consumers can place fraud alert in their credit files.Requires credit companies to give customers free credit reports each year.Gives victims of