Consumer protection laws

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Remember "caveat emptor" -- let the buyer beware? That used to be the law of the marketplace. Not anymore. Today, consumers have clout.

State consumer protection statutes are meant to protect consumers from unfair or deceptive practices and often go beyond the traditional legal remedies available for breach of warranty. Laws like these are on the books in nearly every state, although the details vary.

Case 1. In Florida, a Chevrolet dealer promised a "free four-day, three-night vacation to Acapulco" to anyone who bought a car or van. Relying on this special promotion, Peter bought a van from the dealer. When the vacation voucher arrived, Peter found that the so-called free vacation was really a time-share sales promotion. The vacation trip was loaded down with conditions, restrictions and obligations. Believing he'd been cheated, Peter sued the dealer. The jury awarded Peter $1,768 in compensatory damages (the value of the trip) plus $667,000 in punitive damages.

Case 2. In New Jersey, Kenneth ordered some furniture from a store. When it arrived, Kenneth noticed numerous defects. He rejected the order and demanded a return of his deposit. The furniture store refused, and Kenneth sued. The jury awarded him three times the amount of his deposit and ordered the furniture store to pay his attorney fees.

Both cases were brought under state consumer protection statutes.

Consumer protection laws place a potent weapon in the hands of buyers. In an ordinary lawsuit, a plaintiff can recover only his or her actual losses. For example, without the benefit of a consumer protection law, the man who sued to get back his furniture deposit would be entitled to no more than his $600 deposit. But under the statute in his state, he received triple damages plus attorney fees. Similarly, the man who sued the car dealer about the free vacation won punitive damages amounting to many times the value of his trip. The potential for large verdicts gives buyers and their lawyers an incentive to sue if it looks like a law has been violated.

"Big deal," you may say. "I'm an honest and ethical business person. None of this affects me." Well, that may not be so. For one thing, you need to know the details of your state's consumer protection laws so that you can tell your employees about practices that could get you in trouble. Furthermore, these state laws often allow a customer to sue even if the violation was not intentional. If you sell a product manufactured by a U.S.-based company (say, a Schwinn bike) and mistakenly advertise that the product was made in the U.S. when in fact it was made in Taiwan, you may be liable under the statute.

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The laws are there but what remains is that they are well known by the consumers , only then can thay be rightyfully imposed .onsumers are protected by enforcing compliance with court orders in consumer protection cases, investigating and prosecuting civil actions to stop fraudulent, unfair, or deceptive marketing and advertising practices, and enforcing consumer protection laws.Consumers are also protected from deceptive or unsubstantiated advertising.