Who is a consumer protected by consumer law?

A consumer is an individual (as opposed to a business) who purchases and uses goods, services, or credit for personal or household use. The enormous amount of products and services available to consumers, especially on credit, raises several opportunities for product or service providers to expose consumers to various types of harm.

Who regulates consumer protection and enforces consumer law?

In the United States, both federal and state governments have enacted extensive legislation on several areas of consumer law.

The federal government enforces federal consumer laws and agency regulations through various means, including litigation by the Department of Justice and the Bureau of Consumer Protection (a division of the Federal Trade Commission.) The mission of the Bureau of Consumer Protection is to "protect consumers against unfair, deceptive, or fraudulent practices." It fulfills its mandate by investigating fraud (in individual companies as well as entire industries), conducting litigation, and educating businesses and consumers on consumer law.

All states have consumer protection laws, which are enforced by a state's Attorney General. In addition, private litigants enforce consumer laws through private lawsuits. Some states encourage private litigation of consumer law by passing "private attorneys general statutes." Such laws enable a successful plaintiff to recover attorneys' fees and costs from an unsuccessful defendant. Absent such law, each party must normally bear the cost of its own litigation expenses, even if the party is successful.

Where else can consumers seek protection?

Aggrieved consumers can additionally (or alternatively) seek non-legal assistance from non-governmental entities, such as the Better Business Bureau. The Better Business Bureau (the "BBB") is a non-profit organization of businesses that agree to comply with certain advertising and selling standards. The BBB is a self-proclaimed neutral body despite its composition of business members. The BBB's goal is to promote an ethical marketplace. It provides a consumer complaint service, which consumers may use to file complaints against BBB members. It investigates complaints and publishes a report with its findings. A businesses' non-cooperation with an investigation results in loss of BBB membership. It should be emphasized that the BBB's focus is to reach a mutually acceptable outcome between a consumer and a business, rather than to enforce a consumer's rights.