Laws for Consumer Protection

Just like you customers are protected under certain state and federal laws. As a businessman it is also your sworn duty to comply with what they call the consumer protection laws that are designed to protect the interests of a customer. Find out what consumer protection laws are and avoid legal trouble later on.

One’s business is rooted not in the products he sells nor in the investors that put in money to his company.

What makes his business work is not those things or people, but the customers that frequent his stores or visits his shop to do business. To make sure these customers are well taken care of, businessmen has to fully understand the adage “the customer is always right” and know how to do exactly just that.

There are several consumer protection laws that are in place in the United States, and they vary from state to state. Aside from state consumer protection laws, there are also federal consumer protection laws that have been passed. All of them are being jointly enforced by the U.S Department of Justice and the Federal Trade Commission. Examples of these are:

Fair Billing Practices Act

Bills are an important part of doing business. All businessmen issue a receipt, that’s why they are subject to the Fair Credit Billing Act. Under the FCBA, customers have the right to dispute and even correct errors incurred while billing. These would include incorrectly billed charges, such as charges made to one customer that was incurred by another.

Errors in calculation no matter how minor are also considered answerable errors under the FCBA. If you incorrectly calculated a person’s bill, then you could be facing complaints from the customer as within his rights under the FCBA. Thus, to avoid problems, make sure you calculate correctly a customer’s bill.

The FCBA also protects customers from being charged for something they did not receive. Under the FCBA, you as the vendor have the duty to either return the payment or follow up with the courier as to why the item has not been duly delivered to the intended recipient.

Fair Debt Collection Practices Act

As a businessman, it is within your rights to collect payments for debts that are due. However, the Fair Debt Collection Practices Act also looks out for the rights of the citizens and limits the actions that you can do in your professional capacity as a businessman to collect dues.

For example, you are restricted to calling only within business hours or from 8 am until 9 pm. If you call your client past that restriction, you are going to face complaints for violation of the act. Also, the customer has the right to get written notice restraining you from further communicating – subject to circumstances – under the Act.


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