20.2: Protecting the Purchaser
- Page ID
- 49162
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)Consumer protection laws that protect purchasers of goods and services generally fall into four categories:
- Labeling and packaging;
- Sales;
- Deceptive advertising; and
- Hazardous materials.
Labeling and Packaging
How goods are labeled and packaged influences whether consumers will buy them. As a result, regulations require that labels must be truthful and allow consumers to understand what the product is, what it contains, and any potential hazards.
Labeling and packaging regulations fall into four categories:
| Type | Example |
|---|---|
| Product comparison | Nutrition labels on food and beverages |
| Preventing injury | Warning not to use lawn mower to trim hedges |
| Preventing access | Childproof caps on medications; tobacco secured in retail stores |
| Informing of potential hazards | Potential side effects of hazardous items and drugs |
Sales
The general principle in sales regulations is that advertising must be honest. Consumers should be able to make informed decisions based on what products and services really are and not based on false claims or empty promises. These regulations apply to all sales materials regardless of medium: print, electronic, social media, or radio.
One important regulation involves door-to-door sales. Consumers who buy goods or services from door-to-door salespeople have three days to cancel purchases without penalty. This is called a cooling off period and is intended to protect consumers from high pressure sales tactics. The exception to the cooling off period is when services are immediately rendered. For example, someone who aerates a lawn or removes snow as soon as a consumer consents to pay for the service is entitled to payment without being subject to a cooling off period.
Another important regulation involves delivery of goods ordered online, through catalogs, or by door-to-door sales. Goods must be shipped within the promised time period or notice must be given to the consumer. If the goods are not shipped and proper notice is not given, then the consumer has the right to cancel the order for a full refund. Similarly, if a consumer receives goods that he or she did not order through the mail, the consumer can treat it as a gift and does not have to pay for it.
Sellers are allowed to promote their goods and services and make them appealing to consumers. Puffery is a broad promotional statement made by a business about goods or services that is not intended to be taken literally. In other words, puffery is an exaggerated opinion, such as “the best,” “most popular,” and “nobody can beat it!” As long as puffery remains an opinion and does not contain false factual statements, puffery is legal. However, if puffery contains false statements, then the statements are deceptive advertising and illegal.
Deceptive Advertising
Deceptive advertising is a material misrepresentation or omission likely to mislead a potential customer and would mislead a reasonable customer. In other words, deceptive advertising is a lie.
For example, if a car manufacturer advertises a vehicle as “the best in its class” or “the most popular” sedan, such statements are legal puffery. If the manufacturer advertises that the vehicle gets 35 miles per gallon when it only gets 30 miles per gallon, then that statement is deceptive advertising.
Another form of deceptive advertising is called bait and switch or bait advertising. Bait and switch is a sales practice where a seller advertises a low-priced product to lure consumers into a store only to induce them to buy a higher-priced product. Often the advertised product is not actually available as advertised or the seller refuses to sell it on the advertised terms. The low-priced product is the “bait” that brings consumers in but then the seller “switches” the higher-priced product as the subject of the transaction. Bait and switch advertising can also apply to sales of services.
Hazardous Materials
In the context of consumer protection law, hazardous materials are products deemed dangerous to the consuming public. Hazardous materials include drugs that may be consumed safely in small amounts under supervision of a medical provider, as well as toxic chemicals that are banned for certain public uses such as lead and asbestos.
Hazardous materials regulations are extensive to ensure that products reaching consumers are safe for their intended use and other reasonable, foreseeable uses. These regulations also control product recalls.
Regulations vary depending on the business’s industry. To help consumers understand their rights and report harmful products, the Consumer Product Safety Commission established the www.SaferProducts.gov website.