Consumer Protection

Suppose you spent all of your savings on a new car - only to have it break down repeatedly.  Or your new microwave oven failed to work the first day.  Or the new watch given to you at your high school graduation has never told time.  There are laws intended to help you - the consumer - protect yourself against unfair transactions and sales scams or when a newly purchased product fails to work.

What are some examples of consumer protection laws?

The Federal Truth in Lending Act required lenders and credit card companies to tell you in advance what costs you will - or could - be required to pay for a loan or credit card.  It also give you three days to cancel a credit sale that took place in your home.  And the sales person cannot twist or sugar-caot the terms of the contracts.  Home solicitation contracts or offers must be written in the same language that is used in the oral sales presentation.

What happens if I buy a new car and it turns out to be a lemon?

Generally, there is no cooling-off or cancellation period for vehicle sales.  However, if you buy a new car and it turns out to be a lemon - a car that repeatedly breaks down or has a substantial defect - you may be entitled to a replacement car or full refund.  You must first notify the dealer and give him or her a chance to fix the car.  Bit if the problem continues, you may notify the dealer that you are canceling the purchase and returning the car intact.

What are 'expressed' and 'implied' warranties?

They are two types of consumer warranties.  An expressed warranty is a written contract that gives the manufacturer or dealer a reasonable opportunity to repair any defects in the merchandise.  If the manufacturer or dealer is unable to fix the problem, the merchandise will be replaced or your money refunded.  This applies to whoever owns the merchandise during the warranty period.  If the manufacturer, distributor or retailer provides a warranty or product registration form/card to be completed by the consumer, it must inform the consumer that failure to complete and return the form/card does not diminish his or her warranty rights.

An implied warranty is not a written contract.  It simply exists, by law, when the consumer purchases an item.  In short, you have the legal right to expect that your new item will be "suitable" for what it was intended.  A new watch, for example, should adequately tell time, not merely look nice on your wrist.  If you buy something "as is," however,  there is no warranty and no recourse if the item turns out to be defective.

What if nobody will listen?

There are local, state, and national agencies set up to protect the consumer:

• Local consumer agency - check the telephone book under county government agencies.

• State of California - Department of Consumer Affairs.

• Federal - The Federal Trade Commission