Our most fundamental consumer rights are under attack by the new administration. The Consumer Financial Protection Bureau work has been halted and its future is in jeopardy.
In 1962, President John F. Kennedy introduced the notion of four basic consumer rights. Those rights were expanded by the United Nations in 1985.
Since that time we have seen progress toward protecting consumers from powerful forces that would otherwise be impossible to stand up against. Non-profits and organizations have been allies for us.
For example, the Better Business Bureau provides political lobbying and action on behalf of consumers with grievances. The National Association of Consumer Advocates (NACA) is a nationwide membership organization of attorneys who represent consumers victimized by fraudulent, abusive, and predatory business practices.
Four Basic Consumer Rights
In 1962, President John F. Kennedy introduced the notion of four basic consumer rights.
Right to Choose
Consumers should have a variety of options provided by different companies. For example, anti-trust legislation prevents monopolistic business practices.
Right to be Heard
Consumers have a basic right to voice complaints and concerns about a product, whether those concerns are about quality, safety, pricing, or other points of concern.
The Consumer Financial Protection Bureau allows for consumers to issue a complaint about a financial service or product, at least for now.
Right to be Informed
Businesses should always provide consumers with enough complete, appropriate, and truthful information to make intelligent and informed decisions.
The Truth in Lending Act, which promotes the informed use of consumer credit, was enacted because of this assertion, and prevents lenders from using deceptive practices to trick borrowers into agreeing to hidden costs or unfavorable terms.
Recently, the Acting Director of CFPB and a chief architect of Project 2025, dropped a lawsuit against Capital One for a Bait and Switch that cost consumers $2 billion in savings account interest.
Right to Safety
Products should cause no harm to their users if they are used as prescribed, meaning that sellers have an obligation to make sure consumers are not at undue risk.
The Consumer Product Safety Commission (CPSC) was created in 1972 to establish performance standards and require product testing and warning labels in order to protect consumers’ right to safety.
United Nations Guidelines for Consumer Protection
In 1985, the United Nations established Guidelines for Consumer Protection which effectively added four additional consumer rights. These are:
Right to Consumer Education
Consumers should be able to acquire knowledge and skills to make informed, confident choices about goods and services, while being aware of basic consumer rights and responsibilities and how to act on them.
Tasking the Consumer Financial Protection Bureau with empowering the American public with Consumer Education is a key pillar from the Dodd Frank Act. I served a one-year term as a Visiting Scholar in the Office of Financial Education at CFPB and am proud of the work done there.
Right to a Healthy Environment
The right to live and work in a work space or home that is non-threatening to the well-being of present and future generations.
Right to Redress
This right allows for consumers to receive a fair settlement of just claims.
Right to Satisfaction of Basic Needs
A right that demands people have access to basic, essential goods and services.
Defending the Consumer Financial Protection Bureau
On Monday (3/3) at 7:00 pm ET, Erin Witte and I will discuss in plain language how the new administration's attack on America's consumer agency (CFPB) creates risk for you and your family.
If you are reading this post after the IG Live, it is saved on our Instagram account.
Erin is the Consumer Federation of America Director of Consumer Protection and former Virginia Assistant Attorney General.
Social media is often full of nonsense, and the American consumer deserves to understand the truth. We will address the following:
✔️ How is CFPB funded?
✔️ Why is it funded that way?
✔️ Who regulates CFPB?
✔️ Who is the Acting Director now?
✔️ Will medical debt be removed from our credit reports?
✔️ Will overdraft protection fees increase?
✔️ How is our military at risk?
✔️ What are subscription traps, and what does it have to do with CFPB?
✔️ Who will regulate the "Big Banks?"
✔️ Who will regulate "Big Tech Finance?"
Click here to be added to our calendar invite and receive an alert reminder for the event. Again, if you are reading this post after our IG Live, it will be saved on our Instagram account.
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