Exam 19: Consumer Protection

Consumers who borrow money in the U.S. have, in general, far more rights under the law than is true in other wealthy nations such as Germany and the U.K.

Which of the following is not part of the FTC policy statement for determining if a practice is deceptive?

Wyndham hotels used poor cybersecurity that made it easier for hackers to steal customer information, costing them millions of dollars. Wyndham's website claimed the company used good cybersecurity. The FTC sued for deceptive trade practices for failure to maintain proper computer security. Wyndham appealed. The court of appeals held that:

The Food, Drug, and Cosmetic Act as passed in 1938:

Drug regulation in China can be problematic because:

The Truth-in-Lending Act applies to which of the following transactions?

When a consumer is refused credit, the Fair Credit Reporting Act requires the consumer reporting agency to inform the consumer of the rejection.

The Equal Credit Opportunity Act prohibits discrimination against credit applicants on the basis of sex, race, marital status, or receipt of public benefits (welfare).

Debt collection agencies handle ____ in claims each year.

The average cost of developing a new drug and clearing all FDA regulations to get the drug to market are about a billion dollars and are:

The Equal Credit Opportunity Act prohibits credit discrimination on the basis of all except:

In addition to having the power to decide when drugs and certain food products will be marketed, the FDA can remove products from the market. An example of the FDA's use of its power to remove products from the market is the:

POM advertised that its pomegranate-based products had significant health benefits that were backed by medical studies. The FTC sued, contending that the advertising was misleading. The agency ordered POM to stop making such health benefit claims. POM appealed. The court of appeals held that POM:

A woman applies for credit from a department store. Which of the following information is legal for the department store to consider in deciding if it should give credit?

Under the Fair Debt Collection Practices Act, which of the following need not be provided to the debtor within five days of the initial communication:

Gold Hair shampoo advertises that it is the best for bringing out golden highlights of people with blond hair. Gold Hair ads state: "Tests prove that our shampoo is superior to other shampoos in making blond hair shine like gold." What FTC program monitors such claims?

In Chuway v. National Action Financial Services, where Chuway sued a debt collector for violating the Fair Debt Collection Practices Act by having unclear language in a collection letter, the appeals court held that the letter was "sufficiently clear" to an ordinary consumer, so there was no violation.

If a product is labeled "fresh" it may either be raw, unprocessed food or frozen food, so long as it was frozen fresh.

Nutrition labeling does not require which of the following to be listed per serving portion:

Under the Lanham Act, the FTC may sue advertisers for damages for deceptive ads.