Strengthening Consumer Protection Against Unfair Practices


An Introduction to Consumer Protection

Over time, the world’s quickly advancing economy has expanded the products and services available to consumers. We are now spoilt for choice, and the world is often believed to be better for variety. However, with this volume of goods and services comes the increased possibility of cheating, fraud and scams.

With this in mind, the principle of caveat emptor or “buyer beware” has been and continues to be important. Although this phrase has been used since the early days of trade and commerce, it still finds itself relevant (but more complicated) in the present economy – a consumer is vulnerable to the acts carried out by not just a seller of goods or services but also a service provider like a bank or another business.

These enterprises are in positions that allow them to take advantage of and engage in deception against unknowing consumers. This is why consumer protection is a necessary concept; As the name may imply, these laws aim to protect a consumer from deficiencies, fraudulent business practices, defective products, and dangerous goods and services.

In the following paragraphs, we shall dive into the specifics of what consumer protection entails in essence and why increasing consumer protection is equally, if not more, important.

What are Consumer Protection Laws?

As mentioned above, consumers are protected from harm caused by products or services. This means that you and I have specific rights as consumers that we can use to redress concerns against companies that provide us with defective products. The usage of these rights also extends against individuals who engage in explicit scams.

How Consumers Protections Laws Apply

In the United States, numerous regulations at both the federal and state level are instituted to regulate consumer redressal. These regulations enacted by the federal and state governments impose guidelines such as safety, quality and quantity standards on corporations. These rules and regulations are applicable to products and services sold on the open market. These laws lay down specific guidelines and rules that they must adhere to in terms of inter alia quality, quantity, potency, purity, standard and price of goods.

Among the above-mentioned laws and statutes are the Truth in Lending Act, the Fair Credit Reporting Act, the Gramm–Leach–Bliley Act, Fair Debt Collection Practices Act, Federal Food, Drug, and Cosmetic Act, and the Fair Credit Billing Act. The Consumer Financial Protection Bureau, the Federal Trade Commission, the Food and Drug Administration, and the U.S. Department of Justice are the primary enforcers of consumer protection laws.

To bolster the safety standards, there are also other regulations in place across most industries. These effectively mould and dictate the interactions of corporations with consumers.

The regulations often provide enforcement tools and methods for consumers who are injured by defective products or who suffer pecuniary losses because of improper business practices. They thus can recover compensation for the costs or physical injuries inflicted.

How Consumer Protection Laws Are Implemented

There are numerous checks and systems in place in order to implement consumer protection laws. For example, the FTC’s Bureau of Consumer Protection strives to stop unfair, suspicious, deceptive and misleading business practices. It does this by curating reports from consumers and conducting investigations, initiating legal proceedings with companies and individuals that break the law. Most consumer protection agencies in this regard work hard to develop rules to maintain a fair marketplace. Along with this, they intimate and educate consumers and businesses about their rights and responsibilities.

What are Online Consumer Protection Laws?

In today’s digital world, consumers can manage their myriad personal financial activities online. This includes but is not limited to everyday transactions like shopping and banking and even more specialized online transactions like charitable giving, gambling, online auctions and more.

As the number of active consumers online increases with every passing day, federal lawmakers devise and amend more and more policies to safeguard these consumers’  e-commerce transactions. Without these legal remedies and protections, vulnerable consumers would be at risk of deception, scams, and other illicit activities that compromise their personal finances and privacy. Online Consumer Protection Laws are thus laws that protect a consumer while they carry on their activities online.

How Consumer Protection Laws Protect Your Privacy?

Digital economies have shown that personal information is an immensely important asset that can be misused. When inadequately protected, consumers can experience mishaps such as identity theft, financial fraud and other problems. These collectively cost people, businesses and governments millions of dollars every year. As consumers increasingly adopt these digital technologies and digital economies, the vast amounts of data they generate create an opportunity for enterprises to improve their customer engagement with the added responsibility of keeping this data safe.

Amongst other uses, this valuable data (including location-tracking and other kinds of personal information) can be utilized to better understand the consumer’s pain points and unmet needs. Inferences drawn from this data directly help create and market new product offerings, features and services. In addition to this, it also frequently helps personalize advertising and targeted marketing.

With this in mind, one important aspect of consumer protection also involves protecting a consumer’s privacy. As a consequence of privacy breaches and the demand of consumers for their privacy and control of their own data, governments have begun to adopt new regulations, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in that US state. Many other jurisdictions are also following similar legal requirements.

These rules aid in the elimination of bad businesses, and also give consumers peace of mind and encourage them to spend more. For this to happen, one must feel confident that manufacturers and sellers will not compromise on quality. Overarchingly, organizations must recognize the importance of communicating their methods clearly and transparently, and customers must learn how, when and why their data is being collected. All of this aid the ultimate goal of knowing and receiving the precise quality of the goods or services that the consumer has signed up for.

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