Consumers

Consumers are defined as individuals who purchase, use, maintain, and dispose of products and services. Consumers are users of the final product. Almost all states and the federal government have enacted laws and set up agencies to protect the consumer from deceptive or fraudulent sales practices. Federal and state statutory laws govern various practices such as credit transactions, inferior, adulterated, hazardous or deceptively advertised products, and deceptive or fraudulent sales practices. Federal statutes and regulations govern mail fraud, wholesome poultry and meat, misbranding and adulteration of food and cosmetics, truth in lending, false advertising, the soundness of banks, securities sales, standards of housing materials, flammable fabrics, and various business practices. Mail fraud may include fake contests, "low-ball" price traps (bait and switch), supposed credit for referrals of your friends, phony home improvement loans with huge final payments, and swamp land sales. Some states' laws regulate and give some protection against high-pressure door-to-door sales, false labeling, unsolicited merchandise, abusive collection practices, misleading advertising and referral and promotional sales.

Congress passed the Consumer Protection Act in part to regulate the consumer credit industry. Credit card companies and credit reporting agencies are governed by the Act, as well as certain debt collectors. It requires creditors to disclose credit terms to consumers. The Consumer Protection Act also protects consumers from loan sharks, restricts the garnishing of wages, and established the National Commission on Consumer Finance to investigate the consumer finance industry. The Act also prohibits discrimination based on sex or marital status in the extending of credit.