Unfair Consumer Deceptive Practices

If consumers feel they have been deceived, they are advised to first seek out the relevant deceptive trade practice statute in their state, and then to research the pertinent case (or precedent) law; in other words, to review a case in which this statute has been applied.   This will help the consumer determine whether there is recourse for what has transpired.

Some practices that are deemed unfair fall under the following categories:

Debt collection – where the agency does not represent the terms honestly or puts forth contractual obligations which are unfair.  In addition, the Federal Fair Debt Collection Practices Act and most state debt collection statutes are severely contra-abuse by collectors.

Breach of warranties – if a company is responsible for deceptive advertising regarding the warranty on a sales or service contract, a remedy may be sought.  A deceptive trade practices statute also has the power to provide relief in the case where a warranty claim has not been upheld.

Pyramid schemes – several state statutes outright consider pyramid schemes illegal.  These are setups in which consumers are actively sought who will entice others to take part in the operations by donating monies.

Insurance – any unfair or deceptive practice related to policies or claims falls under this category.  An additional unfair practice is sometimes referred to as an arbitration clause, where you are asked to sign on the dotted line before your insurance agent has explained that you are agreeing to not sue the insurance company in the case of a disagreement over coverage.