To collect debts {debt collection}, companies and people can send letters purporting to be from credit bureaus or legal collection agencies. They can send legal-looking forms giving appearances of lawsuits. They can demand extra late charges. They can try to intimidate, using threats of legal action or fake letters from courts or government agencies.
Salespersons {door-to-door salesperson} can pretend customers are part of a select group, claim they are doing marketing surveys, claim they are earning their way through college, or claim they work for charity. Door-to-door salespersons can collect subscriptions and then switch terms later. Companies with mainly door-to-door salespersons must allow consumers three days to change their minds after salesperson has left, provide cancellation forms, and not transfer debt instruments until five days after sale date.
Selling higher-priced goods is legal and ethical if cheaper goods are available and seller does not disparage cheaper goods {trade-up}| {selling up}. Businesses can try to obtain agreement to buy something and then try to sell extra items or more-expensive models. This technique is typically for items that have options, such as cars and computers.
Products typically include a written policy {guarantee} {warranty} from company stating that you can return them for free service or replacement if defective. Small-item warranties are good for 90 days or one year. Warranties on durable goods, such as mattresses, appliances, and furnaces are 3 to 15 years.
Car warranties {automobile warranty} cover only normal defects and do not cover abuse defects. Warranties are typically transferable.
Businesses can sell using illegal methods {deceptive selling}|. Deceptive selling practices can violate law, and you can report them to Better Business Bureau, Chamber of Commerce, Federal Trade Commission, other state or federal agencies, news media, district attorney, or attorney general. When sellers violate state or federal rules, only state or federal agencies can prosecute.
Federal Trade Commission (FTC) limits unfair competition methods and tries to stop unfair and deceptive practices, but only if they are ordinary business activities, not individual cases. FTC can issue an order {cease and desist order} to such companies. If companies persist, FTC can sue for each violation.
Deceptive selling practices {bait and switch}| can offer a product at low price and then attempt to sell a higher-priced item when consumer gets to store or salesperson comes to home. Sellers can disparage lower-priced goods, have few cheaper items, or refuse to sell lower-priced goods.
Deceptive selling practices {false advertising} can advertise falsely. Advertisements can say present price is less than normal price {deceptive pricing}. Advertisements can use fictitious former prices, which are either unreasonable or non-existent. Advertisements can claim price is wholesale price, though it is actually higher than normal wholesale. Advertisements can suggest that manufacturer's suggested retail price is normal selling price, though actually it is not.
Deceptive selling practices {misrepresentation} can claim product has features it does not have.
Deceptive selling practices {unsolicited merchandise}| can mail unordered goods to consumers and try to force them to pay for the goods or return the goods at their expense. Federal law allows consumers to dispose of these goods and prohibits senders from sending invoices to consumers. This law does not apply to agreements that regularly mail books, records, and so on, to subscribers. This law allows free samples. This law allows charitable organizations to send giveaways to solicit donations.
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Description of Outline of Knowledge Database
Date Modified: 2022.0225