In 2019, nearly 1.7 million consumer fraud complaints went on record in the United States.
You may have heard scary stories about these situations, as they target innocent victims every day. They are often splashed across the news, only made worse by the growing reliance on online shopping.
Yet, like many Americans, you may be left wondering—what is consumer fraud, after all?
Truth be told, this is a wide-ranging area of law that covers a variety of topics. With that said, it’s important to understand the various protections and rights you are granted as a consumer under the law. This way, you will have all the tools required to best identify fraudulent business practices and report them to the appropriate authorities.
Plus, understanding how these scams operate can help protect you from falling victim yourself. By knowing what to look out for, you can avoid joining the millions of Americans every year who suffer from these deceptive practices.
To answer this question and learn more about exactly what is consumer fraud, read on below.
What Is Consumer Fraud?
Consumer law is a wide net. Issues under this category can range from product liability issues to bankruptcy. While all consumers are at risk of this type of fraud, the most frequent victims are senior citizens and college students.
Generally speaking, consumer laws provide rights and powers to consumers in certain situations. These legal protections are designed to fight back against abusive, fraudulent, or predatory practices that may be performed by various businesses.
There are typically state and federal laws regarding this topic. Furthermore, these laws also hold companies responsible for the quality of their goods and services.
Overall, companies cannot just do anything to turn a profit. If their business practices prove harmful, misleading, or deceptive to the consumer, they can face serious legal consequences.
In particular, consumer fraud focuses on unfair, false, and deceptive business practices. Many consumer fraud cases involve:
- Debt collection rule violations
- Mail fraud
- Identity theft
- Pyramid schemes
- Imposter scams
- False advertising
- Bait-and-switch tactics
Furthermore, product defects are a common issue under the consumer law umbrella. These situations may be covered by personal injury law, in addition to consumer law. And you can definitely get help with a product liability accident injury lawyer wyoming in this case.
What Is the Consumer Fraud Act?
The Federal Trade Commission Act (FTCA) was first enacted in 1914. It holds important federal consumer protections that help protect hardworking Americans from falling victim to consumer fraud situations.
It is the primary state of the Federal Trade Commission, established for the purpose of protecting everyday Americans in their purchasing activities.
The Consumer Financial Protection Bureau (CFPB) is another government agency that enforces such regulations at the federal level. In particular, the CFPB works to protect consumers from scams and other financial fraud, ensuring banks and other institutions maintain fair business practices.
In addition, there are various other federal laws that help provide Americans with key consumer protections. These include:
- Home Owner Protection Act
- Home Affordable Modification Program
- Fair Credit Reporting Act
- Electronic Funds Transfer Act
- Fair Debt Collection Act
- Fair Credit Billing Act
- Fair and Accurate Credit Transaction Act
Plus, most states carry a Consumer Fraud Act with additional protections.
For example, the state of New Jersey holds some of the strongest protections against consumer fraud nationwide. These protections cover all types of sales fraud, for transactions involving goods and services within the state.
These laws place strict standards on merchants, salespeople, companies, and contractors. These entities cannot perform explicit or implicit deceptive business practices. If caught, they can face fines of up to three times the damages. In addition, they get stuck with the legal fees for both sides.
What Can You Do About It?
After suffering a consumer fraud incident, your head may be spinning. You might be unsure of what to do next. But it’s important to carefully consider your options, to help mitigate the potential damage of these situations.
If you believe some type of company has violated your rights as a consumer, you can file a legal complaint. If successful, you may be able to recover damages from the liable party.
Sometimes, judges also assign punitive damages to the company to discourage further occurrences of consumer fraud. With this, you may be able to recover even greater damages than your original claim.
Plus, there may be further action available when a group of people suffers similar grievances. In these cases, victims may decide to pool their resources and bring on a class-action lawsuit.
As with any legal action, it’s best to consult the services of a qualified attorney ahead of time. This way, you can get assistance navigating the legal system and ensure you are maximizing your claim.
What Is the Best Defense Against Consumer Fraud?
The best way to defend yourself in a consumer fraud situation is with the help of an expert in the field. By hiring a trusted consumer fraud attorney, you can ensure your rights and best interests are protected.
A consumer fraud lawyer specializes in the field of consumer law cases. They work to help everyday, hardworking consumers protect themselves. When wrongdoings do occur under consumer law, these attorneys help achieve justice and compensation through the appropriate legal channels.
These cases can be tricky to manage, and the legal system may be difficult for a layperson to navigate. With the help of a qualified lawyer in this field, you can build a strong case to recover the compensation you deserve.
Check it out for yourself—choosing to hire a consumer fraud attorney can make or break your case.
Now You Know What Is Considered Consumer Fraud
Now you have an answer to the question—what is consumer fraud?
If you or someone you care about finds themselves in potential consumer fraud situations, you will be better prepared to respond. When these cases do arise, remember to consider the services of an experienced consumer fraud attorney for the best possible outcome. For more tips and important news for your life, check out our other articles!
