CONSUMER ‘S RIGHT, PROTECTION,

AND PRODUCT LIABILITY LAW

 WHAT IS CONSUMER PROTECTION LAW?
Consumer rights and consumer protection law provides a
way for individuals to fight back against abusive business
practices. These laws are designed to hold sellers of goods and
services accountable when they seek to profit by taking
advantage of a consumer's lack of information or bargaining
power. Some conduct addressed by consumer rights laws is
simply unfair, while other conduct can be described as outright
fraud. Consumer rights laws exist at the federal and state level.
They are enforced by government agencies, offices of attorneys
general, and through individual and class action lawsuits filed
by victims.

Consumer protection is the practice of safeguarding buyers

of goods and services, and the public, against unfair practices
in the marketplace. Consumer protection measures are often
established by law. Such laws are intended to prevent
businesses from engaging in fraud or specified unfair practices
to gain an advantage over competitors or to mislead
consumers.
 TYPES OF CONSUMER
PROTECTION CASES
01 02 03
The most common kinds of Predatory lending also forms the basis for a Consumer rights laws also protect the
abusive business practices large number of consumer protection public from false or misleading advertising.
occur when consumers are in lawsuits. These schemes cover a broad range For example, automobile dealers have been
known to advertise a vehicle at a reduced
particularly vulnerable of conduct, such as charging exorbitant
interest rates on credit cards and other price to draw shoppers to the dealership.
circumstances. For example,
loans, hiding fees and penalties in the fine Once they arrive, however, that vehicle or
when people fall behind on their sales price is no longer available. The
print of agreements seldom read by
bills, debt collectors are in a customers, and applying payments to low- dealer will then pressure shoppers into
position to make life even more interest portions of a loan balance first. purchasing a vehicle on less favorable
difficult by calling in the early Sadiy, the foreclosure crisis of 2010 exposed terms. In addition to these "bait and
switch" advertising tactics, consumer rights
morning or late night hours, numerous lending scams in the real estate
market. Federal legislation aimed at laws address things like warranty
making contact at a person's
predatory lending includes the Truth in misrepresentation, defective products,
place of business, and speaking forced arbitration clauses, identity theft,
Lending Act (TILA) and the Home Ownership
to friends and family. and Equal Protection Act (HOEPA) of 1994. and other types of harassment and fraud.
 PRODUCT LIABILITY:
Product liability Defective or dangerous products
are the cause of thousands of injuries every year in the
US "Product liability law" is the set of legal rules
concerning who is responsible for defective or dangerous
products but they are different from ordinary injury law.
This set of rules sometimes makes it easier for an injured
person to recover damages.
Product liability refers to a manufacturer or seller being
held liable for placing a defective product into the hands
of a consumer. Responsibility for a product defect that
causes injury lies with all sellers of the product who are
in the distribution chain. In general terms, the law
requires that a product meets the ordinary expectations
of the consumer. When a product has an unexpected
defect or danger, the product cannot be said to meet the
ordinary expectations of the consumer.
 PRODUCT LIABILITY:
There is no federal product liability law. Typically,
product liability claims are based on state laws and
brought under the theories of negligence, strict
liability, or breach of warranty. Also, a set of
commercial statutes in each state, modeled on the
Uniform Commercial Code, will contain warranty
rules affecting product liability. Product Defects:
Responsible Parties For product liability to arise, at
some point the product must have been sold in the
marketplace. Historically, a contractual relationship,
known as "privity of contract," had to exist between
the person injured by a product and the supplier of
the product for the injured person to recover. In
most states today, however, that requirement no
longer exists, and the injured person does not have
to be the purchaser of the product to recover.
PRODUCTS DEFECTS: RESPONSIBLE PARTIES
For product liability to arise, at some point the product must have been sold in the marketplace. Historically, a
contractual relationship, known as "privity of contract," had to exist between the person injured by a product and the
supplier of the product for the injured person to recover. In most states today, however, that requirement no longer
exists, and the injured person does not have to be the purchaser of the product to recover.

Liability for a product defect could rest with any party in the product's
chain of distribution, such as:
The product manufacturer;
• A manufacturer of component parts;
• A party that assembles or installs the product;
The wholesaler, and The retail store that sold the product to the consumer.

For strict liability to apply, the sale of a product must be made in the regular course of
the supplier's business. Thus, someone who sells a product at a garage sale would
probably not be liable in a product liability action.
 TYPES OF PRODUCT DEFECTS UNDER ANY THEORY OF
LIABILITY
A PLAINTIFF IN A PRODUCT LIABILITY CASE MUST PROVE THAT THE PRODUCT THAT CAUSED
INJURY WAS DEFECTIVE AND THAT THE DEFECT MADE THE PRODUCT UNREASONABLY
DANGEROUS. THERE ARE THREE TYPES OF DEFECTS THAT MIGHT CAUSE INJURY AND GIVE RISE
TO MANUFACTURER OR SUPPLIER LIABILITY:
1. Design Defects - Present in a product from the
beginning, even before it is manufactured, in that
something in the design of the product is inherently
unsafe.
2. Manufacturing Defects - Those that occur in
the course of a product's manufacture or assembly,
3. Marketing Defects - Flaws in the way a product
is marketed, such as improper labeling insufficient
instructions, or inadequate safety warnings.
 WHO'S
RESPONSIBLE?
Who's Responsible? The doctrine, known
as
"res ipsa loquitur," shifts the burden of
proof in some product liability cases to
the defendant(s). Translated, this Latin
term means "the thing speaks for itself,"
and indicates that the defect at issue
would not exist unless someone was
negligent. If the doctrine is successfully
invoked, the plaintiff is no longer required
to prove how the defendant was
negligent, rather, the defendant is
required to prove that it was not
negligent.
 UNAVOIDABLY UNSAFE
PRODUCTS
Unavoidably Unsafe Products By their nature,
some products simply cannot be made safer
without losing their usefulness. For example, an
electric knife that is too dull to injure anyone
would also be useless for its intended purpose. It
is generally believed that, as to such products,
users and consumers are the best equipped to
minimize risk. Thus, while a product might not be
deemed unreasonably dangerous, manufacturers
and suppliers of unavoidably unsafe products
must give proper warnings of the dangers and
risks of their products so that consumers can
make informed decisions regarding them.
COMMON DEFENSES TO
PRODUCT LIABILITY CLAIMS
A defense often raised in product liability cases is that
the plaintiff has not sufficiently identified the supplier
of the product that allegedly caused the injury. A
plaintiff must be able to connect the product with the
party(ies) responsible for manufacturing or supplying it.
There is an exception to this rule, known as the "market
share liability" exception, which applies in cases
involving defective medications. Where a plaintiff
cannot identify which of the pharmaceutical companies
that supply a particular drug supplied the drug he/she
took, each manufacturer will be held liable according to
its percentage of sales in the area where the injury
occurred.create and maintain a publicly available
written plan detailing how they keep their consumer's
personal information secure. Also, the Financial
NOW IT'S TIME FOR THE LAST AREA OF
LAW SPECIFICALLY FOCUSED ON
PRIVACY AND IDENTITY PROTECTION:
THE CHILDREN'S ONLINE PRIVACY
PROTECTION ACT
The COPPA provides children and their parent's
protection by regulating what information a
company may collect about a child and how that
information is used.

The Children's Online Privacy Protection Act

prohibits deceptive or unfair acts in association
with the online collection of children's personal
information and regulates how personal
information is colllected and used by online
services knowingly collect personal information
from children under the age of 13. Primarily, the
MARKETING & ADVERTISING
PRACTICE DIVISIONS
The Consumer Protection Bureau's
Marketing & Advertising Divisions
focus on preventing common types of
fraudulent claims and deceptive
actions taken by marketers while
bringing their products to market.
DECEPTIVE ADVERTISING WHAT IS
DECEPTIVE ADVERTISING?
Deceptive advertising is when images and
words used in print, digital format, or video
advertisements directly or indirectly imply
claims about products that aren't true or
omit necessary information for a full
understanding of the truth.
A simple example of deceptive advertising:
An ice-cream promotes itself in a social
media post as a dairy-free alternative.
However certain ingredients are, in truth,
derived from dairy products. This would be a
violation of consumer protection laws.
ACCORDING TO THE FEDERAL TRADE
COMMISSION AND CONSUMER
PROTECTION PRACTICES:
Product names, pricing, and claims
must not mislead consumers. Mostly,
anything that would affect consumers'
behavior or decisions about the
product or service must be truthful.
This includes:
Product packaging
labeling.
brochures,
advertisements
 CONSUMER PROTECTION LAW AND
ENVIRONMENTAL CLAIMS
CONSUMER PROTECTION LAW AND ENVIRONMENTAL CLAIMS
The Federal Trade Commission stipulates that environmental
claims should be:
a. Specific
b. Truthful, and;
c. backed up with evidence, such as official
Some commonly used environmental terms used are words like
"biodegradable," "recyclable," or "Non-toxic." However, to
remain compliant with Consumer Protection Laws, such claims
need to be proven with certifications or clear explanations as to
how they achieve that environmental claim. For example: If a
product's material is labeled as "recyclable," marketers need to
explicitly list the known recyclable materials and explain this on
the packaging, ie. "Our products are made from 100% bamboo,
which is a known recyclable and sustainable material."
 CONSUMER PROTECTION LAW AND
ENVIRONMENTAL CLAIMS
"MADE IN USA" CLAIMS The country of origin for a
product implies an expected standard and perceived
value which can affect a consumer's purchasing habits.
It's for this reason that misleading origin claims are
deceptive and in violation of Consumer Protection Laws.

THE CAN-SPAM ACT Counter to its common name, the

CAN-SPAM Act protects consumers from what may be
considered spam or unwanted electronic
communications by enforcing communication
requirements such as: Providing accurate subject lines
which do not mislead the reader
 TELEMARKETING SALES RULES
Strict laws are in place to protect consumers from
unfair and deceitful actions taken by telemarketers,
outlined in a piece of legislature known as the
Telephone Consumer's Protection Act, of TCPA. These
laws ensure that consumers are not harassed, deceived,
or mistreated by telemarketers. They cover topics such
as:
Robocalls, or automated dialing systems;
Automated Text Messages;
The National Do Not Call Registry List When and
how a telemarketer may contact you
 CONSUMER PROTECTION LAWS AND
TECHNOLOGICAL CHANGES
Keep in mind, Consumer Protection laws aren't
stagnant. They are always evolving to meet changes in
technology and society. This change has created many
new threats to consumer's privacy and protection,
spurring the creation of new consumer protection laws
specifically designed to protect consumer's privacy and
DIVISION OF FINANCIAL PRACTICES.
rights online.

Almost all Americans become financial services

consumers at some point in their lifetimes. More
importantly, the use of these services directly correlates
was significant milestones in a consumer's lifetime.
Like: Going to university-student loan, Buying their first
car-car loan , Buying a home to start a family -
 THE FAIR DEBT COLLECTION ACT
(FDCPA)
THE FAIR DEBT COLLECTION ACT (FDCPA). It's a stress
situation for any consumer when they cannot repay a
loun, and abrasive debt collectors do not help this fact
and often add to the problem. Therefore, the FTC
created The Fair Debt Collection Act (TFDCA). This law
protects consumers by heir restricting unethical or
unfair actions by third-party debt collection businesses
attempting to collect outstanding debts on behalf of
another entity. Here are a few actions debt collections
are prohibited from doing:
• Being verbally abusive Harassing you Talking to your
family members or work about your debt
• Contacting you outside of reasonable hours Lying or
 MORTGAGE, CREDIT, AND DEBT RELIEF
SERVICES.
People facing financial issues are often more
susceptible to scams and unethical treatment by those
looking to take advantage of their situation. When left
unchecked, predatory credit and debt relief service
providers have been known to put consumers in even
more precarious situations with their services.

SHORT-TERM LENDING.
Most people have at least one month in their life where
it becomes difficult to keep up with expenses. When this
happens, many consumers turn to short-term lenders to
help them over this difficult period.
THANK YOU
very PREPARED BY:
HEZEL JOY GONZALES
LOURENCE PABILARIO
MARY ANGELINE MAGBATA
DAVE CLARK CAHILIG