What Is the Consumer Protection Act?

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The 2020 COVID pandemic drastically changed how people work, learn, and shop. In 2021, the number of digital shoppers alone rose to over 2 billion shoppers.

That’s why it’s vital to boost customer protections and guide businesses on how they can continue to meet consumer needs. That’s why the Consumer Protection Act is in place.

What is the Consumer Protection Act? Learn more here on how it impacts buyers and sellers. We’ve got the basic facts you need to know.

What Is the Consumer Protection Act?

The US Consumer Protection Act helps inform consumers and promote their understanding of the products and services they buy.  The federal agency responsible for the act’s oversight is the Bureau of Consumer Protection.

The Act was designed to hold consumers and businesses accountable during transactions. Both consumers and businesses have rights and responsibilities during these transactions.

For example, sellers have a right to sell their goods when their conditions are met.  They’re also responsible for maintaining safe premises for customers to come visit them.

Consumers have a right to be heard and are responsible to research products before they buy them. This act provides the forum where those consumers can file complaints and hold businesses accountable.

Laws Under the Consumer Protection Act

Most of the laws identified under the Consumer Protection Act are in place to protect a consumer’s privacy from unfair business actions.  These laws include:

Fair Credit Reporting Act 

The Fair Credit Reporting Act (FCRA) focuses on consumer and credit reporting agencies.  The law requires reporting bureaus like Experian, TransUnion, and Equifax to manage the credit information of consumers fairly.

Each of these agencies must develop a publicly available plan that outlines how they’ll keep this private information safe.

The FCRA also holds these agencies responsible for the security and accuracy of a customer’s personal information shared with a third party.

Telephone Consumer Protection Act (TCPA) 

The Telephone Consumer Protection Act (TCPA) protects consumers from unfair telemarketer activity.

This activity ranges from automated text messages to automated dialing systems, or “robocalls.”  The TCPA outlines how and when telemarketers can contact consumers.

Deceptive Advertising

Deceptive advertising means using words or images to imply claims about products or services that aren’t true. These deceptive claims can apply to a product’s pricing or name.

Deceptive advertising also applies to purposely leaving out necessary information that a consumer needs to fully understand the product.

More Questions About the Consumer Protect Act?

Now you know the answer to the question, “What is the Consumer Protection Act?” If you need more information, contact us at Stevenson Klotz Injury Lawyers.

We know companies want to provide the best services possible. And customers are waiting to enjoy that experience.

Frequently Asked Questions (FAQ’s)

Want to know more? Below are some common questions consumers (and businesses) have about consumer protection laws:

What Companies/Services Does the Consumer Protection Act Apply To?

The US Consumer Protection Act applies to all services and goods with public, private, or cooperative companies.

How Can I Reduce the Number Of Robocalls I Get At Home?

The TCPA created the National Do Not Call Registry List. Consumers can list their home and mobile numbers on this list that businesses are required by law to honor.

Can I See What Kind of Credit Information Is on File for Me?

Yes! Under the FCRA, consumers have a right to review and challenge what information credit agencies currently have on file for them.

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