Consumer Fraud and Product Liability

Consumer law is a body of laws that protect the public at large from unfair business practices, deceptive business practice, and predatory business practices. Consumer laws protect the public from improper behavior by companies.  Consumer law requires that companies adhere to the regulations that govern business.

PROTECTIONS AGAINST PROFITS OVER SAFETY AND PROFITS OVER PEOPLE

Consumer laws add protections for consumers from unfair trade practices, deceptive business practices, and unethical means of doing business.  Consumer laws include,  but may not be limited to, the following:

• Federal Food, Drug and Cosmetic Act
• Fair Debt Collection Practices Act
• Fair Credit Reporting Act
• Truth in Lending Act

Consumer fraud involves companies attempting to place profits over safety and profits over people.  This consumer fraud can take the form of many different unfair and deceptive business practices used by companies in order to give them a financial advantage while disadvantaging countless consumers and the public at large. Examples of consumer fraud include, but may not be limited to, the following:

• False Advertising
• Misleading Advertising
• Bait and Switch Schemes
• Automobile Defects
• Product Defects
• Insurance Fraud
• Unfair and Deceptive Contracts
• Overcharging or Improper Charges for Goods and Services

In 2018, the United States Federal Trade Commission (FTC) received approximately 1.4 million fraud related complaints with losses totaling more than $1.5 billion.  Consumer fraud in 2018 was the top complaint for the first time with the FTC.

PRODUCT LIABILITY

Consumers may also have a claim against a company due to a defective product, also known as a products liability claim. A consumer, who is injured or dies as result of a defective product, can bring a claim for redress. Product liability cases are brought under one or more legal theories, which include:

• Failure to Warn

The grounds for this legal theory of product liability are that the company did not properly warn consumers of inherent dangerous associated with the product.  A prior example of failure to warn claims involve the tobacco litigation.

• Defective Design

The grounds for this legal theory of product liability are that the product was designed in such a manner in which that it is likely to cause harm to a consumer.

• Manufacturing Defect

The grounds for this legal theory of product liability are that an error occurred during the manufacturing of the product that made the product defective for use by the consumer.

• Fraudulent Concealment

Often times, companies attempt to intentionally hide or conceal a defect with its product.  This is known as fraudulent concealment. It has been alleged by the United States Securities and Exchange Commission (SEC) that in the Volkswagen Diesel Emissions scandal that the ex-VW chief deliberately attempted to conceal the defect and was aware of the problem years before he previously admitted.