The consumer protection laws were designed or formulated to prevent businesses from taking part in fraudulent activities or dealings as well as unfair trade practices. Unfair trading practices could include the consumer being sold defective goods and subsequently encountering poor customer service on returning the goods. Some businesses adopt the no-return policy to exempt themselves from the responsibilities of selling defective products which in other words is scamming. Other than protection from fraudulent activities or unfair practices, consumer protection laws also prevent businesses from gaining an unfair edge over their competitors. A business can gain an unfair advantage over their competitor through public bashing of the competitor. That is, for instance, spreading false and damaging stories about the competitor and their products thereby ruining their reputation. Nevertheless, comprehensive knowledge of the different consumer laws and their descriptive function is fundamental. As such, out of the many existing laws, there are three major consumer laws towards this effect;
Consumer Product Safety Act- the act is mandated with setting safety standards and recalling goods and products that pose substantial or significant risks of injury or even death to the consumer.
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Magnuson-Moss Warranty Act- mandates and ensures product sellers and manufacturers give a description of the warranty terms, coverage, and exclusions.
Fair Credit Reporting Act- the purpose of the act is to ensure fairness, accuracy, as well as the privacy and integrity of personal and confidential information collected by Credit Reporting Agencies.
Consumer protection laws are to some degree effective. However, they are not adequate to cover every fraudulent activity or unfair practice perpetrated by businesses. Even so, the agencies mandated with enforcing the consumer protection laws lack sufficient resources to carry out their functions and at the same time dealing with every case of consumer rights violation. Additionally, some of the little unfair practices go unreported thus the businesses are not held responsible for their actions meaning the same malpractice can be repeated.
