CHAPTER 19Consumer ProtectionI. The FDA (Food and Drug Administration) Pg. 516A. Purpose of AgencyB. Food Safety1. History2. LaGrou 3. Food Quality Protection – the Delaney Clause: No food additivesknown to be carcinogenic vs. the Food Quality Protection Act Pg. 517 C. Nutrition Labeling Pg. 5171. Labeling regulations2. Label contents3. Standards for health claims ex. “light” or “lite”D. Drug Safety Pg. 518, 520-5211. Application process2. Drug vs. supplement3. Prescription drugs4. Drug effectiveness – The Kefauver Amendment5. Liabilitya. FDA approvalb. Learned intermediary doctrinec. Wyeth E. CosmeticsF. Enforcement Activities 1. recall2. seizureII. The FTC (Federal Trade Commission) Pg. 522-523A. EstablishmentB. Complaint ProcessC. Unfair and Deceptive Acts or Practices1. Deception policy statement – three part testa. misrepresentation/omission of informationb. deception likely to mislead a reasonable consumerc. deception is material2. Specific circumstances/examplesa. telemarketingb. oil and gas well investmentsc. work at home opportunitiesd. invention-promotion scamse. FTC v. John Beck Pg. 5253. Unfairness – three-part standard Pg. 524a. causes substantial harm to consumersb. consumers cannot reasonably avoid injuryc. injury is harmful in its net effects4. Application of unfairness 5. Advertisinga. advertising substantiation program Pg. 526b. deception and common understandingc. deceptive ad examples – “Hooked on Phonics,” Haagen-Dazsd. Telebrands 6. State unfair and deceptive practices acts Pg. 530 a. treble damages b. Schuchmann Pg. 531III. Consumer Credit Protection Pg. 532A. Truth-in-Lending Act (TILA)B. The Consumer Leasing ActC. The Fair Credit Billing ActD. The Fair Credit Reporting ActE. The Equal Credit Opportunity Act Pg. 538F. The Fair Debt Collection Practices Act Pg. 5401. Collection practicesa. garnishmentb. debt collections agencies2. Restrictions imposed3. Required information in collections notice4.
View Full Document
Unlocking...