New Consumer Protection Rules: Harder to Declare Unfair Practices
This act changes how the government determines if business practices are unfair to consumers. For a practice to be deemed unfair, it must now cause substantial injury that consumers cannot reasonably avoid, and the benefits must not outweigh the harm. This means government agencies will have a tougher time proving unfairness, potentially impacting consumer rights protection.
Key points
A practice must cause substantial injury to consumers to be declared unfair.
Injury cannot be trivial or speculative; it can be small harm to many people.
Government agencies must consider the costs of remedies and general burdens on society.
Agencies cannot second-guess consumer decisions unless the practice unreasonably hinders free decision-making.
Public policy can be considered but not as the primary basis for an unfairness determination.
Economic analysis is required before declaring a practice unfair.
Expired
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