Consumer protection refers to a wide variety of regulations, primarily issued and enforced at the federal level by the FEDERAL TRADE COMMISSION (FTC), affecting American consumers. Consumer protection includes regulation of consumer credit, product safety, warranties, and TELEMARKETING. The major consumer-protection laws regulating consumer credit include the following:
• Fair Credit Reporting Act (1971): Requires creditreporting SERVICES to maintain accurate, relevant, and recent information; provide access to credit information only to bona fide users; inform consumers who are turned down or have their interest costs raised and provide reasons for the change; allow consumers to review their files and correct any inaccurate information.
• Fair Credit Billing Act (1975): Requires creditors to mail bills at least 14 days prior to the payment-due date, customers to notify creditors in writing within 60 days regarding billing-error complaints; and allows merchants to give cash discounts.
• Equal Credit Opportunity Act (1975; expanded in 1977): Makes creditor discrimination based on sex, race, national origin, religion, age, receipt of public assistance, or marital status illegal.
• CONSUMER CREDIT PROTECTION ACT (1968): Requires prompt written acknowledgment of consumer billing complaints and investigation of billing errors by creditors.
• Consumer Product Safety Act (1972): Created the CONSUMER PRODUCT SAFETY COMMISSION as an independent regulatory agency issuing safety standards and rules banning hazardous products; the commission also brings lawsuits against producers of hazardous consumer products.
• Magnusson-Moss Warranty Act (1975): Requires simple, clear, and conspicuous presentation of certain information in written warranties to consumers. The act does not require sellers to provide warranties, only requires clear presentation of information in warranties.
• Telemarketing and Consumer Fraud and Abuse Prevention Act (1994): Requires the FTC to develop regulations defining and prohibiting deceptive and abusive telemarketing practices. One regulation allows telemarketing only during the hours of 8 A.M. to 9 P.M., local time. Another regulation prohibits threats, intimidation, or use of profanity in telemarketing activities.
See also WARRANTY.