Chapter 2 Flashcards
List the 6 categories of consumer crimes
crimes of consumer fraud, false advertising, and price-fixing ,crimes of adulterated goods, dangerous drugs and devices, and quackery
Define Consumer Fraud
Consumer fraud entails the use of deceit, lies, or misrepresentations to entice customers to buy goods or services
List some types of consumer fraud
s overcharging and unnecessary repairs.
What department enforces both civil and criminal consumer protection at the federal level
Department of Justice (DOJ)
What charged does the DOJ typically bring?
wire fraud, mail fraud, conspiracy to engage in fraud, and money laundering
Who prosecutes consumer fraud at the state level?
Attorneys General
What are reload scams?
scams that Con artists often go after consumers who have already been victimized
What is a rip and tear” swindler?
Someone posing as a law enforcement official, convinces consumers who have been victimized to pay a fee to recover some of their losses.
What does false advertising involve?
False advertising involves false, misleading, and deceptive representations about goods and services
What act provides for a private civil claim for false advertising
The federal Lanham Act
What must a claimant show and what is their reward?
must show that the advertisement is false or likely to mislead and confuse consumers. The successful claimant can receive monetary damages and an injunction to stop the advertisement.
Who is charged with monitoring false advertisement complaints, usually filed by consumers or competitors at the federal level?
FTC
Who regulates “bait and switch”
FTC
What tools can the state and federal use to stop false advertising?
including voluntary compliance, cease-and-desist orders, injunctions, collection of damages for injured consumers, requiring a corrective advertisement with admission of the deception, and criminal penalties.
To prove false advertisement, what do they need to show?
the advertisement was deceptive or false.
What does the gov’t need to prove to show that false advertising was criminal?
prove an intention to defraud
What is the purpose of antitrust laws?
to keep the prices of goods and services down, but quality up.
How do anti-trust laws protect consumers?
regulating practices such as price fixing, bid rigging, price gouging, predatory pricing, and forming monopolies.
To prove common-law fraud what must the gov’t show
false statement concerning a material fact the intent is knowingly
Name the elements of consumer fraud
The existence of a scheme to defraud
The use of the mail or interstate wire to further the scheme to defraud
Name some defenses to consumer fraud
claiming there was no scheme, the required vehicle (wire or mail) for delivery of a communication was not used, or no communication was transmitted. Entrapment and no false statement made knowingly
What is the punishment for telemarketing fraud?
Up to 5 years in prison, unless the person is over 55 and then it up to 10 years in prison in addition to
Who are the most frequent anti-trust violators?
The pharmaceutical, oil, airline, and dairy industries
What is the purpose of the the purpose of antitrust legislation
to keep prices down and quality up,
