Regulations Protecting Consumer Purchases, Privacy, and Financial Activities

Regulations Protecting Consumer Purchases, Privacy, and Financial Activities

NUMBER YOUR ANSWERS AND COPY THE QUESTIONS HIGHLIGHTED IN RED IN YOUR ANSWERS.

THIS TOPIC HAS 5 ITEMS:

1.1. False and Deceptive Advertising

The Mosquito No Company claims that its electronic mosquito device will “eliminate all mosquito problems within a one-half acre area.” Actually, the device will only work if there is no standing water on the half acre. Explain how the FTC will evaluate this advertising for deception. Explain.

2.2. Electronic and Online Privacy

BigCo records all of the phone calls its employees make on BigCo’s land-line phones. Is BigCo liable under the Electronic Communications Privacy Act? Explain.

3.An online backpack store sells many products that are popular with elementary school children. The store knows some children under 10 subscribe to the store’s coupon service. Is the store subject to the Children’s Online Privacy Protection Act? Explain.

4.The Fair Credit Reporting Act

The ABC department store refuses credit to Mary Jane. Mary Jane has a good job and no debts. She cannot understand the refusal. What would you suggest Mary Jane do? Explain.

5.The Fair Debt Collection Practices Act

The Zenith Credit Bureau telephones Dan and his family almost daily about payment of a $3,500 debt. The phone calls are causing stress for Dan’s family. Dan cannot afford to pay the debt at present, and he needs a listed telephone number for his business. Is there anything Dan can do legally to stop the calls from Zenith? Explain.