The business and the consumer

Currently, the consumer protection movement is gathering momentum. Based on the consumer needs the protection of the law, the movement tries to prevent companies from exerting pressure on the consumer, or from taking advantage of him or her. Because the consumer is in fact vulnerable when buying goods, borrowing funds, or investing for financial gain, a business owner should know some basics of consumer law.

Consumers have protection today in a number of areas, including the following:

- methods by which goods are presented, including during sales and in advertising;

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65535. packaging and labeling of goods;

65535. methods used in selling goods;

65535. credit sales;

65535. protection of consumer defenses.

Many more such areas could be listed. But these are among the most important. Each can discussed separately.

Deceptive Practices in Sales

Various government agencies have passed statutes, rules, and regulations that forbid or restrict deceptive practices in the sale of consumer goods. Endorsements by persons with high public exposure, for example, may not be false or misleading. A lawsuit may be the consumer’s best remedy.

In advertising goods for sale at retail, store owners and others once used various forms of deception. One, called the “bait and switch”, involved ads for “specials” that were not in stock in sufficient quantity to meet anticipated demander that were not in stock at all. The advertiser counted on “baiting” the customer into the shop or store and then selling him or her some other item or items, usually at higher prices.

Packaging and Labeling

Many laws have dealt in recent years with deception in labeling and packaging.

Legislation in existence also requires specifics on labels. A product label must identify the type of product, the name and place of business of the manufacturer, the packer or distributor, the net quantity of all the contents, and the net quantity of one serving if the label also gives the number of servings.

Other legislation establishes standards and protects consumers in various ways. Food, drugs, and cosmetics receive special attention.

Approval and Testing of Goods

Many products are sold with a guarantee, tag, or often indication that the product have been tested and approved by some agency or organization. The “seal of approval” or tag means that the product has been tested and approved for normal consumer use. The seller has violated a warranty made to the consumer and may be liable for fraud if the product has not actually been tested and approved.

Tests and approvals, or tests alone, may precede the sale of some products. Products involving fire and electrical safety features may undergo tests by manufacturers’ associations or testing companies for insurance purposes.

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Successful testing means a product meets industry safety standards. Some private and industry testing agencies, including consumer organizations that publish test results in their own magazines, simply report what their tests have revealed. No conclusions are drawn.

Some magazines also accept product advertising that includes “money back” guarantees. The guarantee requires only that the price of a product be refunded or that it be replaced if the product is defective. If a consumer is insured by the defective item, the magazine or organization giving its approval may be liable under the expanding concept of product liability.