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Consumer protection

Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent businesses from engaging in fraud or specified unfair practices to gain an advantage over competitors or to mislead consumers. They may also provide additional protection for the general public which may be impacted by a product (or its production) even when they are not the direct purchaser or consumer of that product. For example, government regulations may require businesses to disclose detailed information about their products—particularly in areas where public health or safety is an issue, such as with food or automobiles.

Consumer protection is linked to the idea of consumer rights and to the formation of consumer organizations, which help consumers make better choices in the marketplace and pursue complaints against businesses. Entities that promote consumer protection include government organizations (such as the Federal Trade Commission in the United States), self-regulating business organizations (such as the Better Business Bureaus in the US, Canada, England, etc.), and non-governmental organizations that advocate for consumer protection laws and help to ensure their enforcement (such as consumer protection agencies and watchdog groups).

A consumer is defined as someone who acquires goods or services for direct use or ownership rather than for resale or use in production and manufacturing. Consumer interests can also serve consumers, consistent with economic efficiency, but this topic is treated in competition law. Consumer protection can also be asserted via non-government organizations and individuals as consumer activism.

Efforts made for the protection of consumer's rights and interests are:

Consumer protection law or consumer law is considered as an area of law that regulates private law relationships between individual consumers and the businesses that sell those goods and services. Consumer protection covers a wide range of topics, including but not necessarily limited to product liability, privacy rights, unfair business practices, fraud, misrepresentation, and other consumer/business interactions. It is a way of preventing frauds and scams from service and sales contracts, eligible fraud, bill collector regulation, pricing, utility turnoffs, consolidation, personal loans that may lead to bankruptcy. There have been some arguments that consumer law is also a better way to engage in large-scale redistribution than tax law because it does not necessitate legislation and can be more efficient, given the complexities of tax law.

In Australia, the corresponding agency is the Australian Competition & Consumer Commission or the individual State Consumer Affairs agencies. The Australian Securities & Investments Commission has responsibility for consumer protection regulation of financial services and products. However, in practice, it does so through privately run EDR schemes such as the Australian Financial Complaints Authority.

In Brazil, consumer protection is regulated by the Consumer's Defense Code (Código de Defesa do Consumidor), as mandated by the 1988 Constitution of Brazil. Brazilian law mandates "The offer and presentation of products or services must ensure correct, clear, accurate and conspicuous information in the Portuguese language about their characteristics, qualities, quantity, composition, price, guarantee, validity and origin, among other data, as well as the risks they pose to the health and safety of consumers." In Brazil, the consumer does not have to bring forward evidence that the defender is guilty. Instead, the defense has to bring forward evidence that they are innocent. In the case of Brazil, they narrowly define what consumers, suppliers, products, and services are, so that they can protect consumers from international channels trade laws and protect them from negligence and misconduct from international suppliers.

Several regulations in the European Union are concerned with consumer protection, including the Regulation on general product safety (GPSR) and the Directive (EU) 2024/2853 on liability for defective products.

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