Consumer laws provide legal protection
If you make a purchase and discover that the item or service doesn't live up to its promise, you have legal protection.
Federal and state laws prohibit a wide variety of fraudulent business practices against consumers. Some laws are very specific, like, for example, deceptive advertising and deceptive pricing. Others are broader in scope and subject to interpretation.
Among these wide-ranging laws are the following.
- Illinois Consumer Fraud and Deceptive Business Practices Act. Under this law, businesses are specifically forbidden from using false or misleading statements to sell a product or service. The Act allows penalties to be imposed on businesses that do anything deemed to be deceptive.
- Equal Credit Opportunity Act. Consumers are ensured that they have an equal opportunity to obtain credit. The law does not mean that anyone who applies can receive credit. Factors considered by a seller include income, expenses, debt and the consumer's credit history. The law forbids creditors from asking purchasers to reveal their sex, race, marital status, national origin and religion as a basis for the determination.
- Motor Vehicle Retail Installment Sales Act. Tapping into their credit is the way in which many consumers purchase a car. Under state law, the installment contract must clearly indicate the finance charge and any other charges beyond the cash price of the car.
Consumer fraud laws also cover transactions related to home sales, home repairs, vehicle repairs, travel packages, storage of household items and health club contracts.
People who believe they may be victims of consumer fraud have several options available to them. They can file a complaint with the Better Business Bureau or the Illinois Attorney General's Consumer Fraud Bureau. They may also want to hire a lawyer and file a lawsuit. In a typical lawsuit, the plaintiff (who is the person bringing the case before the court) can recover not only his or her actual losses, but also double or triple the punitive (or actual) damages, plus attorney fees.
Note: This information was prepared as a public service by the Illinois State Bar Association and is a joint project with the Illinois Press Association. Its purpose is to inform citizens of their legal rights and obligations.
© Illinois State Bar Association
If you have questions about the application of the law in a particular case, consult your lawyer. The law is constantly changing. Information on this site or any site to which we link does not constitute legal advice.