Consumer Protection Overview

Last updated March 25, 2025

Consumers expect businesses to do the right thing. This includes following consumer protection laws. Unfair trade practices lead to telemarketing scams, predatory creditors, and false advertising. These can leave you vulnerable to consumer fraud, identity theft, and harassment.

State and federal consumer protection laws prohibit deceptive business tactics. Many of these state and federal laws give you the right to take legal action to get compensation. Talk to a local consumer protection lawyer to find out about your legal rights.

What Are Consumer Protection Laws?

Consumer protection laws protect the rights of consumers buying products or services. They also restrict deceptive marketing, debt collection, and sales tactics. Consumer protection laws are necessary because some businesses deceive consumers to sell goods and services. Types of consumer protection laws include:

  • Federal Trade Commission Act
  • Fair Debt Collection Practices Act
  • The Fair Credit Reporting Act
  • Consumer Product Safety Act
  • Food Drug and Cosmetic Act

The FTC and Consumer Financial Protection Bureau (CFPB) are federal agencies that handle many enforcement actions against businesses. When someone reports a complaint, these federal government agencies investigate the claim. They can enforce regulatory penalties if they find a violation.

Most states have their own version of the Consumer Protection Act. State government agencies can enforce state laws for violations involving local businesses.

How Can You Stop Robocalls, Debt Collectors, and Phone Scams?

Spam calls, telemarketers, and calls from debt collectors are some of the most common consumer complaints. They can also violate federal and state consumer protection laws. Many of these calls aren’t legal, and they can involve fraudulent business practices. In some cases, you can file a consumer protection lawsuit to stop these harassing calls.

Spam and Telemarketers

Registering your number on the national Do Not Call Registry is one way to limit spam calls. While this should help limit the number of calls you get, it won’t stop all of them. Some companies call from other countries and fake the caller ID number. So, you don’t know where they are coming from.

Do not answer these calls. If you get a robocall, hang up. Answering or pushing a number can show the caller that your number is active. This may encourage continued calling and harassment.

Debt Collectors

If you’ve fallen behind on payments, you may get harassing calls from collection agencies. You have the right to minimize or stop these calls entirely. Under the Fair Debt Collection Practices Act, debt collectors must limit when and how often they can contact you. They can’t call you in the middle of the night or call you repeatedly throughout the day.

If you tell them you prefer to communicate in writing, they’re required to stop with the phone calls and send you letters instead. Contact your state attorney general or consumer protection division for collection agency violations.

Phone Scammers

Con artists will try to use your phone number to scam you out of money. Never give out your personal information over the phone. This includes your Social Security number, login information, or family members’ names. Legitimate businesses know not to ask for this information over the phone.

If a caller claims to be from your bank, law enforcement, or government office, hang up and call those places directly. If the call you received was legitimate, they’ll be able to take over from there. Many scammers can spoof phone numbers of legitimate businesses or government agencies.

Can I Sue for Injuries Caused by a Dangerous or Defective Product?

There are many dangerous products on the market. Companies are liable for injuries caused by defective products. This includes manufacturing defects, design defects, and labeling defects. If you’re injured by a defective product, you can file a product liability claim against the manufacturer or seller. A product liability lawsuit will allow you to get compensation for your injuries.

How Can You Stop Identity Theft?

According to the Federal Trade Commission, there were more than one million reported cases of identity theft. Don’t give out personal identifying information through chats, social media links, or on the phone. Don’t click on email links without confirming the email is legitimate. You can always go directly to a bank or government website without clicking on the link.

Use strong passwords and change them often. Shield your computer or phone with firewalls, virus protection, and virtual private networks (VPNs). Regularly check your credit report to spot any signs of potential theft. You can also freeze your credit to stop unauthorized new accounts and loans.

Sometimes, if scammers get your information from a data breach of your bank, healthcare provider, or DMV, you can’t do anything to stop it. If you think you’re a victim of identity theft, visit the FTC’s IdentityTheft.gov for resources.

How Common Is Auto Dealer Fraud?

Dealership fraud is more common than you may expect. Some practices seem shady, but they aren’t against the law. However, other practices violate state and federal consumer protection laws. Examples of dealership fraud include:

  • Adding fees and services you did not agree to
  • Bait and switch motor vehicle advertising
  • Odometer fraud or lying about prior accidents
  • Yo-yo financing when the dealer knew you could not get the loan they offered

Are There Financial Services Protection Laws?

Credit and lending laws protect you from deceptive practices in finance. This includes taking out a loan, getting credit, or buying financial services. Retailers often offer store credit cards that give you discounts on your purchases. Sometimes, these offers can be misleading and predatory. The Federal Consumer Credit Protection Act (CCPA) can protect your consumer rights.

Lenders and credit card companies have to follow certain rules, including full disclosure of the terms and conditions. This includes truth in lending, protections against arbitrary interest rate rises, or offering credit limits without assessing your ability to afford payments.

Always read the fine print and privacy policy on any credit agreements. Feel free to take applications home with you to read them over before you commit to anything.

How Can a Consumer Protection Lawyer Help?

These are just some examples of your rights and protections as a consumer. You may also have other protections depending on where you live. Contact a local consumer protection lawyer to find out about your rights as a consumer.

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