Consumer fraud is the deceptive and unfair tactics some companies use to trick consumers into making a purchase. There are three types: false advertising, bait-and-switch, and pyramid schemes. Read on to learn about the three types of consumer fraud, and to learn how misled consumers can file a complaint.
Consumer Fraud Types
In false advertising, the company misleads consumers about a product’s characteristics, which are typically a driving force behind one’s purchase decisions. Bait-and-switch lures the buyer in with a great deal, and then offers a different product in its place. A pyramid scheme is an unrealistic return or promotion, where the only profit comes from new recruits.
The Complaint Process
When a consumer wishes to complain about consumer fraud, they should first notify the business, retaining records of every contact with the company. If the business fails to act, the consumer should write a complaint letter and forward a copy to the business and the nearest Consumer Protection Agency. If nothing happens from there, the consumer should consider hiring a lawyer.
Consumer Rights
Most areas provide a cooling-off period for consumers. This three-day period allows the buyer to cancel the contract after the purchase, for any reason. If one orders a product that requires shipping, the vendor must ship it in the stated time. If the company cannot fulfill the shipping promise, they must give the buyer notice and the chance to cancel the order, take a refund or accept a delayed delivery.
Consumer Protection Agency
The CPA (Consumer Protection Agency) regulates the US consumer industry. The CPA licenses and regulates professionals, investigates financial scams and consumer fraud and prosecutes scammers. The CPA also provides assistance to those bringing civil suits against fraudulent professionals and businesses.
Should a Consumer Hire an Attorney for a Fraud Case?
Business Lawyers who handle consumer fraud cases can write complaint letters on the client’s behalf and they can help the client file a lawsuit against the fraudulent seller if required. Likewise, if a company is facing a suit for or accusations of consumer fraud, they should visit website to consult business lawyers and learn about their potential remedies and legal rights.
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