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consumer protection laws
Consumer protection laws safeguard buyers of goods and services from deceptive, unfair, or fraudulent practices. Historically, under the common lawdoctrine of caveat emptor (“let the buyer beware”), consumers had little recourse against misleading or one-sided sales. Modern consumer protection regimes developed to address these limits, particularly in adhesion contracts where common law fraud doctrines offered limited remedies.
In the United States, consumer protection is governed by both federal and state law. At the federal level, the Federal Trade Commission Act prohibits “unfair or deceptive acts or practices.” The Consumer Financial Protection Bureau (CFPB) regulates lending, credit, and related financial services under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Specialized statutes provide additional protections, including the Truth in Lending Act, the Fair Debt Collection Practices Act, and the Food, Drug, and Cosmetic Act for product safety.
States supplement federal law through their own consumer protection statutes and enforcement by state attorneys general. Every state has an unfair or deceptive acts or practices statute (often called a “little FTC Act”) that prohibits false advertising and consumer misrepresentation. States also regulate particular industries such as insurance, real estate, and professional licensing.
Although these laws provide remedies, enforcement often depends on administrative agencies because individual consumers face cost and time barriers in bringing claims. Since the 1970s, however, federal and state agencies have significantly expanded enforcement efforts, making consumer protection a central feature of modern regulatory law.
See also: Justia’s Consumer Protection Law Center
[Last reviewed in September of 2025 by the Wex Definitions Team]
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