THE BUSINESS CONSUMER AND LAW:
WEEK 1
Business Organization - A business
organization refers to a structured entity or
entity that engages in economic activities with
the primary goal of generating profit.
TYPES OF BUSINESS ORGANIZATION
 Sole Proprietorship - A business with a
single owner and operator who is
responsible for all of the company's
financial obligations.
 Partnership - An association of two or
more persons or entities that conduct
business as co-owners.
 Corporation - A legal entity that exists
independently and without the owners.
They are organized according to
positions. They are able to sign contracts,
make loans and take loans, sue and be
sued, hire staff, own assets, and pay
taxes.
 Cooperative (Co-op) - A cooperative is a
business that is owned and run by a
group of people or businesses who share
a common interest. Members take part in
the cooperative's decision-making and
profit-making processes.
 Nonprofit Organization - Unlike for-
profit businesses, nonprofits are
established to carry out a particular social,
educational, philanthropic, or religious
objective.
 Joint Venture - In a joint venture, two or
more companies work together on a
particular project or business endeavor
while still maintaining their own legal
identities. Joint ventures can be ongoing
or temporary, and the partners normally
split the risk and rewards.
LEGAL REQUIREMENTS IN BUSINESS
VENTURE
1. Choose a Business Structure
• What are my short- and long-term business
goals?
• What type of services am I providing?
• Do I plan to hire employees in the future, or
will this be a solo business venture?
• What capital do I have available and what
future financial requirements do I have?
2. Register Your Business Name
3. Trademark Names, Logos, or Slogans
4. Get an Employer Identification Number
(EIN) from the IRS (BIR in PH)
5. Learn About State and Local Taxes
6. Obtain Required Business Permits and
Licenses
7. Create a Compliance Plan
8. Open a Business Bank Account
9. Obtain Business Insurance
WEEK 2: THE CONSUMER PROTECTION
LAW
International Consumer Law - This law
focuses on the protection of consumers to
defend, promote, develop, and pursue
consumer rights as the international basis of
consumer protection law. The development of
this law is going to protect the consumers from
potential abuse by traders due to the presence
of inequality of bargaining powers – regardless
of where the consumer or trader is based.
THE PRINCIPAL FUNCTIONS OF
INTERNATIONAL CONSUMER LAW
 Consumer law is important for those who
experience problems like fraud or
misspelling because it guards against
unfair corporate practices.
 According to consumer law, customers
must get fair treatment and be entitled to
compensation in the form of repairs,
replacements, or refunds in the event of
problems.
 According to consumer legislation, all
goods and services must be of adequate
quality, in good working order, and free
from defects.
 Additionally, the item must appear and
function as claimed by the manufacturer,
or else it won't meet the requirements.
 Consumer protection laws also shield
customers from deceptive clauses in
contracts, such as any unstated fees or
costs.
UNITED NATIONS GUIDELINES FOR
CONSUMER PROTECTION
 The Right to Safety - To be protected
against products, production processes,
and services that are hazardous to health
or life.
 The Right to be Informed - To be given
facts needed to make an informed choice,
and to be protected against dishonest or
misleading advertising or labelling.
 The Right to Choose - To be able to
select from a range of products and
services, offered at competitive prices
with an assurance of satisfactory quality.
 The Right to be Heard - To have
consumer interests represented in the
making and execution of government
policy, and in the development of
products and services.
 The Right to Satisfaction of Basic
Needs - To have access to basic
essential goods and services, adequate
food, clothing, shelter, health care,
education and sanitation.
THE BUSINESS CONSUMER LAW: WEEK 3
 Consumer Protection Laws - Consumer
protection laws are designed to shield
customers against dishonest corporate
tactics, poor quality goods, and
hazardous products and services. They
are crucial to a stable market economy
because they keep vendors honest and
remove the possibility of unpleasant
shocks.
CONSUMER PROTECTION LAW
 Product Safety - Laws governing
product safety make sure that goods sold
to customers adhere to strict safety
requirements. This covers laws governing
accurate labeling, cautions, and product
recalls for potentially dangerous items.
 Truth in Advertising - Companies must
give customers accurate and
understandable information about their
goods and services in their advertising
and promotional materials. Bait-and-
switch techniques, false or deceptive
advertising, and other dishonest business
methods are normally forbidden.
 Consumer Contracts - To ensure that
the terms and conditions of consumer
contracts are reasonable, clear, and
simple to comprehend, consumer
protection laws frequently regulate them.
Abuseful contractual tactics, secret fees,
and unfair contract provisions are
frequently addressed.
 Consumer Privacy - Laws concerning
consumer privacy control how companies
gather, utilize, and safeguard the
personal data that customers supply.
These regulations provide customers the
right to access and control their data and
frequently call for informed consent.
 Unfair and Deceptive Trade Practices -
These laws prohibit businesses from
engaging in unfair or deceptive practices
that could mislead or harm consumers.
This may include false advertising,
fraudulent schemes, and other dishonest
behaviors.
 Lemon Laws - Lemon laws protect
consumers who purchase defective
vehicles, typically requiring
manufacturers to replace or refund
vehicles that have significant defects
affecting their safety, value, or use.
 Consumer Financial Protection - Laws
in this area regulate financial products
and services, including loans, credit cards,
and mortgages, to ensure transparency,
fair lending practices, and protection
against predatory lending.
 Online consumer protection - As e-
commerce has grown, the importance of
legislation controlling online transactions
and consumer rights in the virtual world
has increased. Online security, data
breaches, and electronic signatures are
all covered under these regulations.
 Product Liability - Laws governing
product liability make sure that producers
and merchants are held accountable for
harmful or faulty goods that hurt
customers.
 Dispute Resolution and Remedies -
Consumer protection laws frequently offer
customers a way to take legal action
when their rights are infringed. This might
include channels for disputes,
compensation, returns, or legal action.
Product Liability - Product liability is the legal
term describing a company's obligation to
compensate customers for losses, damages,
or accidents resulting from its goods. This
obligation extends to the company's suppliers,
retailers, distributors, suppliers, and other
parties engaged in the manufacturing and
distribution of the product. Consumers or
users who suffer loss as a result of a product's
fault or hazard may file product liability
lawsuits to recover damages.
 Consumer protection laws and tort
(personal injury) law frequently have an
impact on product liability laws, which
differ depending on the jurisdiction.
Depending on the legal framework, many
supply chain participants, such as
manufacturers, distributors, wholesalers,
and retailers, may be held accountable.
KEY ELEMENTS OF PRODUCT LIABILITY
 The product was defective or dangerous.
 The defect directly caused the plaintiff's
injury or damage.
 The product was being used as intended
(or in a reasonably foreseeable manner)
when the injury occurred.
 The plaintiff suffered actual harm,
whether in the form of physical injuries,
property damage, or financial losses.
HOW TO PREVENT PRODUCT LIABILITY
Businesses frequently employ quality control
systems, ensure thorough inspection of goods,
issue clear warnings and instructions, and
maintain enough liability insurance coverage
to protect themselves against product liability
lawsuits. Consumers must be informed of their
legal rights regarding product safety, and
companies must place a high priority on
creating products that can be relied upon.
Product Defects - Product defects refer to
flaws or deficiencies in the design,
manufacturing, or labeling of a product that
can make it unsafe for its intended use,
potentially causing harm to consumers,
property, or the environment. When a product
is defective, it can pose risks ranging from
minor inconveniences to severe injuries or
even fatalities.
3 MAIN TYPES OF PRODUCT DEFECTS
 Manufacturing Defects - These defects
occur during the manufacturing or
production process and result in a
product that is different from its intended
design. Even if a product's design is safe,
a manufacturing defect can make specific
units of the product dangerous or
substandard. Manufacturing defects
typically lead to isolated instances of
defective products.
 Design Defects - Design defects are
inherent flaws in the product's design that
make the entire line of products
dangerous. This means that all products
of that design are potentially hazardous.
Even if the manufacturing process is
flawless, the design itself makes the
product unsafe.
 Labeling Defects (Failure to Warn or
Inadequate Instructions) - These
defects involve inadequate warnings or
instructions for safe product usage. If a
product requires special precautions or if
there are potential dangers associated
with its use, manufacturers are obligated
to provide clear and accurate warnings to
consumers.
CONSUMER PRIVACY AND IDENTITY
PROTECTION
Consumer privacy and identity protection are
essential components of contemporary society,
particularly in a time when personal data is
heavily gathered, stored, and shared online.
These ideas include protecting people's
private information, making sure their online
activity is secure, and limiting unauthorized
access to critical information.
The right of people to manage their personal
information and how it is gathered, utilized,
kept, and shared by companies, organizations,
and governments is referred to as consumer
privacy. It includes offline as well as internet
actions.
KEY PRINCIPLES THAT INVOLVES IN
CONSUMER PRIVACY
 Data Collection and Use - Organizations
that collect personal data should do so
transparently and with clear purposes.
They should only use data for the
purposes specified and obtain explicit
consent from individuals when necessary.
 Data Security - Businesses and
organizations should implement robust
security measures to protect the personal
data they collect from unauthorized
access, breaches, and cyberattacks.
 Consent and Control - Consumers
should have the ability to provide
informed consent for data collection and
have control over the data they share.
They should be able to access, correct,
or delete their personal information when
needed.
 Consumer Privacy - Laws related to
consumer privacy govern how
businesses collect, use, and protect
personal information provided by
consumers. These laws often require
informed consent and provide consumers
with the right to access and control their
data.
 Transparency - Organizations should
provide clear and understandable privacy
policies that detail how data is collected,
used, and shared. This allows consumers
to make informed decisions about sharing
their information.
 Third-Party Sharing - When personal
data is shared with third parties,
consumers should be informed and
consent should be obtained. This is
particularly relevant in cases of data
brokers and advertising networks.
 Children's Privacy - Special protections
are often required for the data of children,
including obtaining parental consent for
data collection and ensuring age-
appropriate content.
 International Data Transfer - When data
is transferred across international borders,
organizations must comply with relevant
data protection laws and ensure that
appropriate safeguards are in place.
Identity Protection - Identity protection refers
to steps taken to stop the theft of personal
information for illicit reasons, including
financial fraud, identity theft, and cybercrime.
In the digital age, where personal information
is susceptible to hackers, this is especially
crucial.
KEY ASPECTS THAT INVOLVES IN
IDENTITY PROTECTION
 Secure Authentication - Online services
and platforms should implement strong
authentication methods, such as two-
factor authentication, to ensure that only
authorized users can access accounts
and data.
 Data Encryption - Sensitive data, such
as payment information and passwords,
 should be encrypted to prevent
unauthorized access
 Phishing Prevention - Educating
consumers about phishing attacks and
providing guidelines to identify suspicious
emails and websites can help prevent
identity theft
 Regular Monitoring - Individuals should
regularly monitor their financial
statements, credit reports, and online
accounts for any unusual activity that
could indicate identity theft.
 Privacy Settings - Users should be
encouraged to set strong privacy settings
on social media and online platforms to
control the amount of personal
information that is publicly accessible.
 Secure Transactions - Businesses that
handle online transactions should use
secure payment gateways and follow
best practices for e-commerce security.
Consumer Privacy and Identity Protection -
Both consumer privacy and identity protection
are crucial for preserving confidence in digital
technology and online services as well as for
the well-being of the individual. Governments,
corporations, and people all have a part to
play in ensuring the responsible and secure
handling of personal data.
Consumer Privacy And Identity Protection -
The Federal Trade Commission Act, an
important piece of Us legislation, created the
Federal Trade Commission (FTC) as an
independent federal body with the aim to
safeguard consumers and advance fair
competition. On September 26, 1914,
President Woodrow Wilson ratified the Act.
The FTC Act's main goals are to stop anti-
competitive behavior that can affect
consumers and to deal with dishonest and
unfair corporate practices. The Act gives the
FTC the authority to carry out these goals
through enforcement, regulation, and inquiry.
KEY PROVISIONS AND PRINCIPLES OF
THE FEDERAL TRADE COMMISSION ACT
 Preventing Unfair Methods of
Competition - The Act empowers the
FTC to prevent practices that restrain
competition, discourage innovation, or
lead to monopolies. This helps maintain
competitive markets that benefit
consumers.
 Prohibiting Deceptive and Unfair
Practices - The Act gives the FTC the
authority to address deceptive advertising,
false claims, fraud, and other practices
that harm consumers. The FTC can take
action against companies that engage in
such practices.
 Investigations and Enforcement - The
FTC has the authority to investigate
companies suspected of engaging in anti-
competitive or deceptive activities. It can
issue subpoenas, conduct hearings, and
gather evidence during investigations.
 Cease and Desist Orders - The FTC
can issue cease-and-desist orders
against companies found to be engaging
in unfair or deceptive practices. These
orders require companies to stop the
problematic behavior.
 Rulemaking - The FTC can issue trade
regulations and rules that help guide
businesses in complying with the Act.
These rules cover various aspects of
consumer protection and competition.
 Consumer Education and Advocacy -
In addition to enforcement, the FTC
engages in consumer education and
advocacy to raise awareness about
consumer rights and protection.
 Promoting Competitive Markets - By
preventing anticompetitive practices and
monopolistic behavior, the Act helps
maintain competitive markets that benefit
consumers through lower prices,
innovation, and choice.
THE FAIR CREDIT REPORTING ACT
A federal legislation in the United States called
the Fair Credit Reporting Act (FCRA)
governs the gathering, sharing, and utilization
of consumer credit information. The FCRA,
which was passed into law in 1970, strives
to protect consumers' ability to view and
modify their credit reports as well as the truth,
fairness, and privacy of their personal credit
information. Over time, the FCRA has been
modified and expanded to meet new concerns
regarding consumer rights and credit reporting.
In order to facilitate responsible lending and
credit access while also defending consumer
rights, the Fair Credit Reporting Act strives to
strike a balance. Consumers are given the
ability to actively manage their credit
information, fix mistakes, and prevent identity
theft.
KEY ASPECTS THAT INVOLVES IN THE
FAIR CREDIT REPORTING ACT
 Credit Reporting Agencies (CRAs) -
The FCRA governs the activities of credit
reporting agencies, commonly known as
credit bureaus. These agencies collect
and maintain credit information on
consumers, including credit histories,
payment behavior, and personal
information.
 Consumer Consent - The FCRA
requires that consumers provide consent
before their credit information is accessed
 by third parties for certain purposes, such
as credit checks for loans or rental
applications.
 Accuracy of Credit Information -
Consumers have the right to accurate
and up-to-date credit information. The
FCRA places an obligation on CRAs to
maintain accurate records and investigate
and correct inaccuracies in response to
consumer disputes.
 Consumer Access - Consumers have
the right to access their credit reports free
of charge once a year from each major
credit reporting agency (Equifax,
Experian, and TransUnion). This access
allows individuals to monitor their credit
profiles and identify potential errors.
 Dispute Resolution - The FCRA
establishes a process for consumers to
dispute inaccurate or incomplete
information on their credit reports. CRAs
are required to investigate and resolve
disputes within a specific timeframe.
 Adverse Action Notices - When a
negative credit-related decision (such as
a loan denial) is made based on
information in a credit report, the
individual must be provided with an
adverse action notice, explaining the
decision and providing information about
how to obtain a copy of the credit report
used.
 Identity Theft Prevention - The FCRA
includes provisions to assist consumers
in dealing with identity theft, allowing
them to place fraud alerts and security
freezes on their credit reports to prevent
unauthorized access.
 Prescreened Offers - Companies can
make prescreened offers of credit or
insurance based on consumers' credit
profiles. The FCRA outlines the rules for
such offers and gives consumers the
option to opt-out.
 Limited Access to Medical Information
- The FCRA places limitations on the use
of medical information in credit reports,
especially in relation to employment
decisions.
The Gramm-Leach-Bliley Act - Also known
as the Financial Services Modernization
Act of 1999, the Gramm-Leach-Bliley Act
(GLBA) is a key federal legislation in the
United States that deals with the privacy and
security of customers' personal financial
information. The GLBA, which went into
effect on November 12, 1999, has significant
ramifications for financial institutions and the
security of customer data in the financial
industry. The Gramm-Leach-Bliley Act's main
objectives are to reform financial services
rules and foster financial institution competition
while protecting consumers' non-public
personal information privacy and security.
KEY ASPECTS THAT INVOLVES IN THE
GRAMM-LEACH-BLILEY ACT
 Privacy Rule - The GLBA requires
financial institutions to inform consumers
about their privacy practices and policies
regarding the collection and sharing of
personal financial information.
 Opt-Out Provision - The Act grants
consumers the right to opt out of having
their non-public personal information
shared with non-affiliated third parties,
except as allowed by law.
 Safeguards Rule - The GLBA mandates
that financial institutions implement
security measures to protect consumers'
personal information. Institutions are
required to establish and maintain
safeguards to prevent unauthorized
access, data breaches, and misuse of
data.
 Pretexting Prohibition - The Act
prohibits the practice of pretexting, which
involves using false pretenses to obtain
personal information from financial
institutions.
 Consumer Education - The GLBA
emphasizes consumer education and
awareness about their rights regarding
the privacy of their financial information.
 Exceptions for Affiliate Sharing - The
Act allows financial institutions to share
certain types of consumer information
with their affiliates for specific purposes,
such as marketing financial products and
services.
 Enforcement - The GLBA assigns
enforcement responsibilities to various
federal agencies, including the Federal
Trade Commission (FTC) and relevant
banking regulatory agencies. These
agencies are responsible for overseeing
compliance and taking enforcement
actions against institutions that violate the
GLBA.
The Children’s Online Privacy Protection
Act- The collection, use, and sharing of
personal information from children under the
age of 13 online is regulated by the Children's
Online Privacy Protection Act (COPPA), a
federal legislation in the United States.
Enacted in 1998, COPPA places restrictions
on owners of websites, online services, and
applications that are targeted towards children
or that deliberately gather information about
them. Its goal is to safeguard children's
privacy and safety in the digital world.
KEY PROVISIONS AND PRINCIPLES THAT
INVOLVES IN THE CHILDREN’S ONLINE
PRIVACY PROTECTION ACT
 Notice and Consent - COPPA requires
operators of websites, online services,
and apps to provide clear and easily
understandable privacy notices to parents,
explaining the information collected from
children, how it will be used, and whether
it will be disclosed to third parties.
 Parental Control - The law gives parents
the right to review and delete their
children's personal information and opt
out of future data collection.
 Minimum Necessary Collection -
COPPA mandates that operators only
collect the personal information
necessary to fulfill the purpose of the
child's online activity. Excessive
collection is discouraged.
 Security Measures - Operators are
required to establish and maintain
reasonable security procedures to protect
the personal information they collect from
children.
 Deletion of Information - Operators
must delete personal information
collected from children once it is no
longer necessary for the purpose for
which it was collected.
 Minimum Necessary Collection -
COPPA mandates that operators only
collect the personal information
necessary to fulfill the purpose of the
child's online activity. Excessive
collection is discouraged.
 Information Collected for One-Time
Response - Operators are not required
to obtain parental consent when
collecting personal information from a
child for the sole purpose of responding
to a one-time request from the child.
 Safe Harbor Programs - The Federal
Trade Commission (FTC) allows industry
groups and organizations to develop self-
regulatory programs that meet the
requirements of COPPA.
 Liability and Accountability - Operators
are held accountable for complying with
COPPA's provisions, even if third parties
collect data on their behalf.
Consumer Protection Law And
Environmental Claims - Consumer protection
law and environmental claims frequently cross
paths, particularly when companies make
assertions or claims on the environmental
effect of their goods or services. Consumers
may be duped, their trust may be damaged,
and both consumers and the environment may
suffer as a result of misleading or inaccurate
environmental statements. For their claims to
be truthful, open, and supported by facts,
enterprises must abide by both environmental
rules and consumer protection statutes.
Environmental statements that are inaccurate
or misleading hurt customers as well as efforts
that are made to promote sustainable
behaviors and goods.
KEY PROVISIONS AND PRINCIPLES THAT
INVOLVES IN THE CHILDREN’S ONLINE
PRIVACY PROTECTION ACT
 False Advertising and Deceptive
Practices - Many consumer protection
laws prohibit false, misleading, or
deceptive advertising. This includes
claims about a product's environmental
benefits or impact. If a business makes
inaccurate or exaggerated claims about a
product's environmental qualities, it can
be considered a violation of consumer
protection laws.
 Greenwashing - Refers to the practice of
making misleading or unsubstantiated
environmental claims to portray a product
as more environmentally friendly than it
actually is. Consumer protection laws aim
to prevent greenwashing by requiring
companies to provide evidence and
substantiation for their environmental
claims.
 Third-Party Certifications - Some
consumer protection laws recognize third-
party certifications and eco-labels as
evidence of a product's environmental
claims. Third-party certifications and eco-
labels are issued by independent
organizations that assess and verify a
product's environmental attributes based
on established criteria.
 Clear and Accurate Information -
Consumer protection laws emphasize the
importance of providing consumers with
clear, accurate, and transparent
information.
 Comparative Claims - Consumer
protection laws also regulate comparative
claims, where a business compares the
environmental impact of its product to
that of competing products. These claims
must be based on accurate and
substantiated information.
 Enforcement and Penalties -
Regulatory agencies responsible for
consumer protection may investigate and
take enforcement actions against
businesses that engage in deceptive
environmental claims. Penalties can
include fines, corrective actions, and
injunctions.
 Educating Consumers - Consumer
protection laws may encourage educating
consumers about evaluating
environmental claims, helping them make
informed decisions based on accurate
information.
 THE BUSINESS AND CONSUMER LAW:
WEEK 4
THE "MADE IN USA" CLAIMS - "Made in
USA" claims are declarations or labels that
companies use to represent that a product
was made or produced in the United States.
These promises may be enticing to customers
who want to buy domestically produced goods
for a variety of reasons, such as supporting
local businesses and guaranteeing product
quality. To avoid false or misleading
advertising, rules and restrictions apply to the
use of "Made in USA" claims.
Guidelines are aimed at Preventing
Deceptive Marketing Practices and
Ensuring that such Claims are Truthful and
Substantiated
"All or Virtually All" Standard - An
unqualified "Made in USA" claim implies that
the entire product, including all significant
parts and processing, was made in the United
States. For such claims, the product must be
"all or virtually all" made in the USA.
 Qualified claims, such as "Made in USA
with imported parts," indicate that the
product includes foreign components or
processing. Qualified claims should
provide clear information about the extent
of foreign involvement.
Substantiation and Records - Businesses
making "Made in USA" claims should be able
to substantiate these claims with credible
evidence. They should maintain records
documenting the origin of components and the
manufacturing process.
 Records should be sufficient to
demonstrate compliance with FTC
guidelines.
Enforcement and Penalties - The FTC can
take enforcement actions against businesses
that make deceptive or unsubstantiated "Made
in USA" claims. Penalties can include cease-
and-desist orders, fines, and corrective
advertising.
Voluntary Certification Programs - Some
businesses participate in voluntary certification
programs, such as the "Made in USA
Certified" program, to provide additional
assurance to consumers that their products
meet domestic production standards.
The Can-Spam Act - The Controlling the
Assault of Non-Solicited Pornography and
Marketing Act, or CAN-SPAM, is a federal
regulation in the United States that governs
commercial email communications. The CAN-
SPAM Act was passed in 2003 with the main
objectives of establishing guidelines and
criteria for sending commercial emails,
safeguarding consumers from misleading and
unsolicited communications, and creating
sanctions for non-compliance. Any
"commercial electronic mail message"
delivered to recipients in the US is subject to
the CAN-SPAM Act. Even if they do not
directly advertise a product for sale, emails
that promote products, services, or
commercial content fall under this category.
KEY PROVISION AND REQUIREMENTS OF
THE CAN-SPAM ACT
 Prohibition of Deceptive Headers and
Subject Lines - The Act prohibits the use
of false or misleading information in the
header, "From" line, and subject line of
commercial emails. It mandates that
these elements accurately reflect the
sender's identity and the content of the
message.
 Clear Identification of Commercial
Messages - Commercial emails must be
clearly identified as advertisements or
solicitations. This requirement helps
recipients distinguish between
commercial emails and personal
messages.
 Opt-Out Mechanism - Senders must
provide a clear and easily accessible way
for recipients to opt out of receiving future
commercial emails. Typically, this
involves an "unsubscribe" link that allows
recipients to remove themselves from the
sender's email list.
 Prompt Handling of Opt-Out Requests
- Senders have ten business days to
process opt-out requests and stop
sending commercial emails to the
requesting recipient. The recipient's opt-
out request must be honored for at least
30 days.
 Inclusion of Physical Address -
Commercial emails must include the
sender's physical postal address. This
provides recipients with a way to contact
the sender.
 Prohibition of Harvesting and
Scraping - The CAN-SPAM Act prohibits
the automated harvesting or scraping of
email addresses from websites for the
purpose of sending unsolicited
commercial emails.
 Requirement for Commercial Email to
Be Identifiable - Commercial emails
must be easily distinguishable from non-
commercial emails. This includes making
it clear that the message is an
advertisement and providing opt-out
information.
 Third-Party Compliance - Companies
that hire third-party email marketing
services are still responsible for ensuring
that those services comply with the CAN-
SPAM Act.
 Civil and Criminal Penalties - Violations
of the CAN-SPAM Act can result in civil
and criminal penalties. The Federal Trade
Commission (FTC) can impose fines, and
individuals or entities found guilty of
intentional violations may face criminal
penalties.
Telemarketing Sales Rules - The
Telemarketing Sales Rule (TSR) is an array
of laws governing telemarketing operations in
the United States. Its purpose is to safeguard
customers against unfair and abusive
telemarketing techniques. The Federal Trade
Commission (FTC), a federal organization in
charge of consumer protection, released the
TSR. With the Telemarketing Sales Rule,
consumers will be safeguarded against
dishonest and pushy telemarketing techniques,
and transactions would be transparent.
Businesses participating in telemarketing
operations must abide by certain regulations,
and breaking them may result in legal
repercussions.
KEY PROVISION AND REQUIREMENTS
OUTLINED IN THE TELEMARKETING
SALES RULE
 Do-Not-Call Registry - The TSR
establishes the National Do-Not-Call
Registry, allowing consumers to opt out
of receiving telemarketing calls.
Telemarketers are required to access this
registry and refrain from calling numbers
on it.
 Abandoned Calls - Telemarketers are
prohibited from making abandoned calls,
which occur when a call is not connected
to a live sales representative within two
seconds of the recipient answering.
 Call Timing - Calls to consumers are
restricted to specific hours between 8am
and 9pm, local time for the recipient.
 Caller ID - Telemarketers must transmit
accurate caller identification information,
enabling recipients to identify the caller's
name and telephone number.
 Sales Pitches and Disclosures -
Telemarketers must provide certain
information to consumers during the
sales call, including: The identity of the
seller; The purpose of the call; The nature
of the goods or services being offered;
The total cost of the goods or services;
Any restrictions or conditions related to
the purchase; Refund and cancellation
policies; Material terms of any warranties
or guarantees.
 Billing and Payment - Telemarketers
are prohibited from requesting or
receiving payment from consumers in
advance of delivering promised goods or
services. They are also required to obtain
express informed consent before
charging a consumer's account.
 Recordkeeping - Telemarketers are
required to maintain records of sales
transactions, including sales scripts and
written authorizations, for a specified
period.
 Prizes and Awards - Telemarketers
conducting prize promotions are required
to disclose the odds of winning, the fact
that no purchase is necessary to win, and
other relevant information about the
promotion.
 Prohibited Practices - The TSR
prohibits several deceptive and unfair
practices, such as misrepresentations,
high-pressure sales tactics, and making
false statements.
 Enforcement and Penalties - The FTC
enforces the TSR and may take legal
action against telemarketers found in
violation. Penalties can include civil fines,
court orders, and other remedies.
 Exemptions - Certain calls are exempt
from the TSR, including calls for
charitable contributions, political
campaigns, surveys, and calls from
entities with whom the consumer has an
established business relationship.
Consumer Protection Law And
Technological Changes - In reaction to
technological advancements, consumer
protection legislation has dramatically changed.
New opportunities and problems in the area of
consumer protection emerge as technology
develops. To keep up with technological
advancements, consumer protection law is
always changing. The necessity to modify
legislation to safeguard consumers in the
digital era is acknowledged by governments
and regulatory agencies worldwide. However,
given how quickly technology is developing,
new problems and possibilities will inevitably
arise, necessitating constant revisions to
consumer protection regimes.
SOME WAYS IN WHICH CONSUMER
PROTECTION LAW HAS ADAPTED TO
ADDRESS THESE CHANGES
 Digital Commerce and Online
Transactions - Consumer protection laws
have been updated to address e-
commerce, online shopping, and digital
transactions. These laws govern issues
such as online product descriptions,
electronic contracts, and consumer rights
in online disputes.
 Privacy and Data Protection -
Technological advancements have led to
increased concerns about data privacy
and security. Laws like the European
Union's General Data Protection
 Regulation (GDPR) and the California
Consumer Privacy Act (CCPA) aim to
protect consumers' personal information
in the digital age.
 Online Advertising and Marketing -
Consumer protection laws now cover
online advertising practices, including
disclosure requirements for sponsored
content, affiliate marketing, and influencer
marketing. Regulations also address
deceptive advertising practices in digital
media.
 Digital Accessibility - Laws and
regulations require digital platforms and
websites to be accessible to individuals
with disabilities. This ensures that
technology is inclusive and that people
with disabilities can access online
services and content.
 Mobile Apps and App Stores - Consumer
protection laws address issues related to
mobile apps, including transparency in
app store listings, in-app purchases, and
the collection of user data by apps.
 Financial Technology (Fintech) - Fintech
services, such as digital payments and
peer-to-peer lending, are subject to
consumer protection regulations to
ensure transparency, security, and fair
practices.
 Internet of Things (IoT) - As more devices
become connected to the internet, there
is growing concern about data security
and privacy in IoT devices. Consumer
protection laws may address these
concerns through regulations on data
collection and device security.
 Product Safety in Technology -
Regulations ensure that technology
products, such as smartphones and
smart home devices, meet safety
standards and do not pose health risks to
consumers.
 Cybersecurity and Data Breach
Notification - Laws mandate that
companies take measures to secure
consumer data and notify affected
individuals in the event of a data breach.
 Online Reviews and Ratings - cannot collect debts that they do not have
Regulations address issues related to
fake online reviews and ratings, aiming to
prevent deceptive practices that can
mislead consumers.
 Digital Content and Intellectual Property -
Laws govern the use of digital content,
including copyright and licensing
agreements. These laws protect
consumers from infringement and ensure
that creators are fairly compensated.
The Fair Debt Collection Practices Act
(FDCPA) – In the United States, the Fair Debt
Collection Practices Act (FDCPA) is a federal
legislation that controls the actions and
business practices of third-party debt
collectors that work to recover debts on behalf
of creditors. The FDCPA's main objective is to
safeguard customers against unfair, dishonest,
and abusive debt collection methods. It's
crucial to remember that the information
presented here is only a broad overview of the
FDCPA; individual circumstances may differ.
When it comes to ensuring that customers are
handled fairly and with respect during the debt
collection process, the law is essential.
KEY PROVISIONS AND PROTECTIONS
OFFERED BY THE FDCPA
 Prohibited Harassment and Abuse - Debt
collectors are prohibited from engaging in
any conduct intended to harass, oppress,
or abuse the consumer. This includes
threats of violence, obscene language,
excessive phone calls, and making false
or misleading statements.
 Communication Restrictions - Debt
collectors are restricted from
communicating with consumers at
inconvenient times, such as early
morning or late at night, unless the
consumer agrees to it. They are also
limited in their ability to contact
consumers at work if they know that the
consumer's employer prohibits such
communications.
 Disclosure of Debt - Within five days of
initial communication, debt collectors
must provide consumers with written
notice that includes details about the debt,
the amount owed, the creditor's name,
and the consumer's rights under the
FDCPA.
 Right to Dispute the Debt - The consumer
should dispute a debt if you believe you
don't owe it or the information and
amount is incorrect.
 Validation of Debts - Upon a consumer's
request, debt collectors must provide
verification of the debt, including details
about the original creditor.
 No Unauthorized Debts - Debt collectors
the legal right to collect or that are
beyond the statute of limitations.
 Recordkeeping and Reporting - Debt
collectors are required to maintain
records related to debt collection efforts
and may be subject to reporting
requirements.
Mortgage, Credit, And Debt Relief Services
- Mortgage, credit, and debt relief services are
financial services and programs created to
assist people in managing their mortgage
loans, enhancing their credit profiles, and
reducing or eliminating financial difficulties
resulting from debt. People who are struggling
financially or who want to improve their
financial circumstances may find these
services helpful.
TYPE OF SERVICE: MORTGAGE
SERVICES
 Mortgage Origination - Mortgage lenders
assist individuals in obtaining home loans
to purchase real estate. They guide
borrowers through the application
process, determine eligibility, and offer
various mortgage products, such as
fixed-rate mortgages or adjustable-rate
mortgages.
 Mortgage Refinancing - Individuals with
existing mortgages may opt to refinance
to secure better terms, lower interest
rates, or cash-out equity from their homes.
Mortgage lenders facilitate the
refinancing process.
 Mortgage Modification - When
homeowners face financial hardship and
risk foreclosure, mortgage servicers may
offer loan modification programs to adjust
the terms of the mortgage, such as
extending the loan term or reducing
interest rates.
TYPE OF SERVICE: CREDIT SERVICES
 Credit Repair - Credit repair companies
assist individuals in improving their credit
scores by identifying and disputing
inaccuracies on credit reports. They may
also offer guidance on building a positive
credit history.
 Credit Counseling - Non-profit credit
counseling agencies provide financial
education, budgeting assistance, and
debt management plans to help
individuals regain control of their finances
and repay debts.
 Credit Monitoring - Credit monitoring
services keep track of changes to credit
reports, alerting individuals to any
suspicious activity or potential identity
theft.
TYPE OF SERVICE: DEBT RELIEF
SERVICES
 Debt Consolidation - Debt consolidation
involves combining multiple debts, such
as credit card balances, into a single loan
or payment plan with more favorable
terms, typically lower interest rates.
 Debt Settlement - Debt settlement
companies negotiate with creditors on
behalf of individuals to reduce the total
amount owed. Clients make payments
into a settlement account, and when
sufficient funds accumulate, settlements
are reached with creditors.
 Bankruptcy Services - Bankruptcy
attorneys provide legal assistance to
individuals considering bankruptcy as a
last resort for debt relief. There are
different types of bankruptcy, including
Chapter 7 and Chapter 13, each with its
implications and requirements.
It's important to exercise caution when
seeking mortgage, credit, or debt relief
services, as the industry has been
associated with scams and unethical
practices. To protect yourself:
 Research and verify the legitimacy of
service providers. Check for licenses and
accreditations.
 Read reviews and seek
recommendations from trustworthy
sources.
 Understand the costs and fees
associated with these services and
ensure they are reasonable.
 Be wary of guarantees that sound too
good to be true, such as "guaranteed
credit repair" or "100% debt reduction.
Before engaging in any of these services,
consider consulting with a financial advisor or
credit counselor to explore your options and
make informed decisions based on your
financial situation and goals. Additionally, be
aware that some services, like credit
counseling, are available through non-profit
organizations and may offer lower-cost
alternatives to for-profit companies.
Short Term Lending - It is the practice of
taking out a loan for a short time, often from a
few days to a few months. These loans are
created to give people and companies easy
access to money to meet short-term financial
demands. There are many different types of
short-term loans, and they are frequently
utilized for certain objectives. When
examining short-term financing choices, it's
necessary to use caution because some of
them may include excessive prices and
exploitative behavior. Review the conditions,
charges, interest rates, and repayment plan in
detail before taking out a short-term loan.
COMMON TYPES OF SHORT-TERM
LENDING
 Payday Loans - Payday loans are small,
short-term loans typically due on the
borrower's next payday. They are often
used by individuals who need quick cash
to cover unexpected expenses. Payday
loans are known for their high-interest
rates and fees, making them a costly
borrowing option.
 Installment Loans - Installment loans
are short-term loans that are repaid over
a fixed period through a series of
 scheduled payments. Unlike payday
loans, installment loans offer more
manageable repayment terms and may
have lower interest rates.
 Personal Loans - Personal loans can be
used for various purposes, including
short-term financial needs. They are
typically unsecured loans, meaning they
do not require collateral. The terms of
personal loans vary, but short-term
personal loans are usually repaid within a
year or two.
 Bridge Loans - Bridge loans are short-
term loans used by individuals or
businesses to bridge a financial gap
between two transactions. For example, a
homeowner might use a bridge loan to
cover the purchase of a new home before
selling their existing one.
 Business Loans - Businesses often use
short-term loans to address immediate
cash flow issues, take advantage of time-
sensitive opportunities, or cover seasonal
expenses. Short-term business loans
may be secured or unsecured.
 Line of Credit - A line of credit is a
revolving credit facility that provides
access to funds up to a predetermined
limit. Borrowers can draw on the line of
credit as needed and repay it with interest.
It can be a useful source of short-term
financing for businesses.
 Merchant Cash Advances - Merchant
cash advances are a form of short-term
financing in which a business receives an
upfront sum of cash in exchange for a
percentage of future credit card sales.
Repayment is based on daily credit card
sales.
 Invoice Financing - Invoice financing, also
known as accounts receivable financing,
allows businesses to obtain immediate
cash by selling their outstanding invoices
to a financial institution at a discount.
 Pawn Shop Loans - Pawn Shop loans
involve using personal property as
collateral for a short-term loan. The
borrower must repay the loan, plus
interest and fees, to retrieve their pawned
item.
 Online Lenders and Peer-to-Peer (P2P)
Lending - Online lenders and P2P lending
platforms offer various short-term lending
options to individuals and businesses.
These platforms often provide faster
approval processes and may cater to
borrowers with diverse credit profiles.
Consumer Contract - A consumer contract is
a legally enforceable agreement that specifies
the terms and conditions of a transaction or
continuing relationship between a customer
and a business or service provider. These
agreements encompass a variety of consumer
activities, including as the leasing or renting of
property, the purchase of products and
services, and subscriptions and memberships.
To promote fairness and openness in
transactions between customers and
businesses, consumer contracts are controlled
by contract law and consumer protection
regulations.
FEATURES AND PROTECTION OF
CONSUMER CONTRACTS
 Offer and Acceptance - A consumer
contract typically begins with an offer
made by the business and an acceptance
by the consumer. The offer details what
the business is willing to provide, while
acceptance signifies the consumer's
agreement to the terms.
 Terms and Conditions - Consumer
contracts contain detailed terms and
conditions that specify the rights and
obligations of both parties. These terms
may include: Description of the product or
service; Price and payment terms;
Delivery or performance expectations;
Warranty or guarantee information;
Return and refund policies; Dispute
resolution procedures; Privacy and data
protection provisions.
 Clear and Understandable Terms -
Consumer protection laws often require
that contracts use clear and easily
understandable language. Legal jargon or
complex terms should be avoided to
ensure consumers can fully comprehend
the contract's terms.
 Disclosure of Information - Consumer
contracts must disclose all essential
information. This includes providing
accurate product descriptions, warranty
details, and any potential risks associated
with the purchase.
 Unfair Contract Terms - Consumer
protection laws typically prohibit unfair
contract terms that heavily favor the
business and create significant
imbalances in the parties' rights and
obligations. Contracts should not contain
terms that are hidden in fine print or that
consumers could not reasonably
anticipate.
 Cooling-Off Period - In some
jurisdictions, certain consumer contracts
offer a "cooling-off" period during which
consumers can cancel the contract
without penalty if they change their minds
shortly after signing.
 Privacy and Data Protection -
Consumer contracts should address
issues related to the collection, use, and
protection of consumer data, especially in
contracts related to online services and
subscriptions.
 Non-Discrimination and Fair Treatment
- Contracts should not discriminate
against consumers based on protected
characteristics, such as race, gender,
religion, or disability.
 Online Contracts - Contracts formed
online, such as through e-commerce
websites or mobile apps, should adhere
to specific regulations for electronic
contracts. These may include
requirements for electronic signatures
and disclosures.
 Modification and Termination
Consumer contracts may outline the
process for modifying the agreement and
the conditions under which either party
can terminate the contract.
 Dispute Resolution Mechanisms -
Contracts often specify how disputes
between consumers and businesses will
be resolved. This can include arbitration,
mediation, or access to the court system.
 Damages - One of the most common
consequences of a contract violation is
the payment of damages by the party that
breached the contract. Damages are
meant to compensate the non-breaching
party for any losses or harm they suffered
as a result of the breach
 Liquidated Damages - Some contracts
include a provision specifying the amount
of damages to be paid in the event of a
breach. These are known as liquidated
damages clauses.
 Termination of the Contract - In some
cases, a breach may give the non-
breaching party the right to terminate the
contract. Termination releases both
parties from their future contractual
obligations.
 Reputation Damage - Violating a
consumer contract can harm a business's
reputation, leading to loss of customers,
negative reviews, and a damaged brand
image. This can have long-term
consequences for a business's success.
 Criminal Penalties - In cases of severe
contract violations involving fraud or
illegal activities, the breaching party may
face criminal charges and potential
imprisonment.
CONSUMER CONTRACT - Consumer
contracts are crucial legal agreements that
spell out the obligations and expectations of
both parties to a transaction. Before agreeing
to the terms of these contracts, consumers
should thoroughly read and comprehend them.
If they have any questions or concerns, they
should also consult a lawyer. It is crucial to
remember that the penalties for breaking a
consumer contract might differ greatly
depending on the particulars of the case, the
relevant laws, and the contract's provisions.
To fully comprehend their rights, duties, and
available remedies in the event of a contract
dispute or violation, parties should consult with
legal advice.
MISSION: The School of International
Hospitality Management offers students the
high-quality education through experiential
learning approach and showcased industry
compliant facilities that will develop students
holistically, and will mold students to become
- competitive, useful and committed to nation
building guided by the school core values:
Christ-centeredness, servant leadership,
excellence, diligence, and integrity.
VISION: The School of International
Hospitality Management of WCC Aeronautical
and Technological College envisions itself as
leader on producing top caliber professional
and value-laden graduates who excels in the
field of tourism and hospitality, compete
excellency in the global world and lead the
nations building and development.
QUOTE OF THE DAY: “LAW WITHOUT
JUSTICE IS A WOUND WITHOUT A CURE.”
~ WILLIAM SCOTT DOWNEY
QUOTE OF THE DAY: “AT HIS BEST, MAN
IS THE NOBLEST OF ALL ANIMALS;
SEPARATED FROM LAW AND JUSTICE HE
IS THE WORST.” ~ ARISTOTLE
QUOTE OF THE DAY: “CHAOS WAS THE
LAW OF NATURE; ORDER WAS THE
DREAM OF MAN.” ~ ALFREDO TORRES.