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Flashcards in Consumer Protection Deck (23):

Consumer protect laws

Federal and state statutes that regulate the behavior of
businesses that deal with consumers


Environmental protection laws

Contain levels of pollution and clean up hazardous waste sites
In this country


Food, Drug and Cosmetic Act (FDCA or FDC Act) 1938

Regulates testing, manufacture, distribution and sale of foods,
Drugs, cosmetics and medicinal devices in the US


Food and Drug Administration (FDA)

Federal administrative agency empowered to enforce the FDCA


What actions can the FDA seek?

Seek search warrants, conduct inspections, obtain orders for
Seizure, recall or condemnation of products

Seek injunctions, turn over suspected criminal violations to
The US Department of Justice for prosecution


Adulterated food

Food that consists in whole or part of any filthy, putrid or
Decomposed substance


FDCA prohibits too things?

1 distribution of adulterated foods

2 false and misleading labeling of food products


What does the FDCA require of food producers?

Food labels including name of food, name/ place of manufacturer,
Statement of ingredients, nutritional content


United States Department of Agriculture (USDA)

Federal administrative agency responsible for regulating meat,
Poultry and other food products

Inspect food processing and storage facilities and can initiate
Legal proceedings against violators


Nutrition Labeling and Education Act (1990)

Statute requires food manufacturers and processors to provide
Nutrition information on most foods

Prohibits them from making scientifically unsubstantiated
Health claims


Drug Amendment to the FDCA (1962)

Gives FDA broad powers to license new drugs in the US,
Have right to withdraw approval of previously licensed drug

After new drug application is filed, the FDA holds a hearing and
Investigates the merits of the application (can take many years)


Drug Amendment to the FDCA (1962): requirements

Law requires all users of prescription and nonprescription drugs
To receive proper directions for use

Receive warnings of side effects



Includes substances and preparations for cleansing, altering
The appearance of and promoting attractiveness of a person


Medicinal Device Amendment of the FDCA 1976

Gives FDA authority to regulate medicinal devices

Ex. Heart pacemakers, kidney dialysis machines etc.


Bio safety Protocol

United Nations countries agreed that all genetically engineered
Foods would be labeled "May contain living modified organisms"


Consumer Product Safety Commission (CPSC)

Independent federal administrative agency empowered to

1) adopt rules and regulations to interpret and enforce CPSA
2) conduct research on safety of consumer products
3 collect data regular ding injuries caused by consumer products



Consumer product safety act of 1972


Lemon laws (in most states)

Provide procedure for consumers to follow to correct recurring
Problems in vehicles


Federal Trade Commission Act (FTC Act) 1914

Enforced by federal trade commission


Section 5 of the Federal Trade Commission (FTC) Act

Prohibits unfair and deceptive practices to extensively regulate
Business conduct


Advertising is false under Section 5 of the FTC Act if... 2 things

1 contains misinformation or omits important info likely to mislead
The average consumer

2 makes unsubstantiated claim (this product is 33% better than
Our competitors)


Bait and Switch

Type of deceptive advertising under Section 5 of the FTC Act

Occurs when seller gets consumer into their store by advertising
Low priced merchandise and tries to sell higher priced merchandise
And refuses to show consumers advertised merchandise


Door to door sales

Many states have enacted laws cancel door to door sales within a
3 day period