BMF: CFA #6 QUESTIONS WITH
COMPLETE ANSWERS { GRADED A+}
Consumer Protection Laws - ✔✔Regulations designed to safeguard consumers
against unfair practices in the marketplace.
Purpose of Consumer Protection Laws - ✔✔To ensure fair competition, prevent
fraud, and protect consumers from unsafe products or deceptive practices.
Examples of Consumer Protection Laws - ✔✔FTC Act, Consumer Product Safety
Act, Truth in Lending Act, Fair Credit Reporting Act.
FTC Act - ✔✔Prohibits unfair or deceptive acts or practices in commerce.
Consumer Product Safety Act - ✔✔Regulates the safety of consumer products to
protect against unreasonable risks of injury.
Truth in Lending Act (TILA) - ✔✔Requires clear disclosure of terms and costs
associated with credit transactions.
, Fair Credit Reporting Act (FCRA) - ✔✔Regulates the collection, dissemination,
and use of consumer credit information.
Consumer Rights - ✔✔Include the right to safety, information, choice, redress,
and representation.
Unfair Practices - ✔✔Actions that harm consumers, such as false advertising,
deceptive pricing, or bait-and-switch tactics.
Deceptive Practices - ✔✔Misleading consumers through false statements or
omitting important information.
Bait-and-Switch - ✔✔Advertising a product at a low price to attract customers,
then persuading them to buy a more expensive product.
Consumer Product Safety Commission (CPSC) - ✔✔Federal agency responsible
for protecting the public from unreasonable risks of injury or death from consumer
products.
Consumer Fraud - ✔✔Deceptive practices intended to induce consumers to part
with their money or property.
Product Liability - ✔✔Legal responsibility of manufacturers, distributors, and
sellers for injuries caused by defective products.
COMPLETE ANSWERS { GRADED A+}
Consumer Protection Laws - ✔✔Regulations designed to safeguard consumers
against unfair practices in the marketplace.
Purpose of Consumer Protection Laws - ✔✔To ensure fair competition, prevent
fraud, and protect consumers from unsafe products or deceptive practices.
Examples of Consumer Protection Laws - ✔✔FTC Act, Consumer Product Safety
Act, Truth in Lending Act, Fair Credit Reporting Act.
FTC Act - ✔✔Prohibits unfair or deceptive acts or practices in commerce.
Consumer Product Safety Act - ✔✔Regulates the safety of consumer products to
protect against unreasonable risks of injury.
Truth in Lending Act (TILA) - ✔✔Requires clear disclosure of terms and costs
associated with credit transactions.
, Fair Credit Reporting Act (FCRA) - ✔✔Regulates the collection, dissemination,
and use of consumer credit information.
Consumer Rights - ✔✔Include the right to safety, information, choice, redress,
and representation.
Unfair Practices - ✔✔Actions that harm consumers, such as false advertising,
deceptive pricing, or bait-and-switch tactics.
Deceptive Practices - ✔✔Misleading consumers through false statements or
omitting important information.
Bait-and-Switch - ✔✔Advertising a product at a low price to attract customers,
then persuading them to buy a more expensive product.
Consumer Product Safety Commission (CPSC) - ✔✔Federal agency responsible
for protecting the public from unreasonable risks of injury or death from consumer
products.
Consumer Fraud - ✔✔Deceptive practices intended to induce consumers to part
with their money or property.
Product Liability - ✔✔Legal responsibility of manufacturers, distributors, and
sellers for injuries caused by defective products.
