25 Consumer Rights That Business Sometimes Deny
Consumers often don’t realize how many regulations protect them. These rights ensure safety and guard against unfair marketing, shielding individuals from corporate overreach. Laws ensure that every transaction is legal, fair, and transparent. However, the specifics can be unclear. Let’s take a look.
Consumer Protection
Every country has specific laws designed to protect consumers. For example, in the United States, the Federal Trade Commission enforces the “cooling-off rule,” which allows consumers to cancel certain sales within three days. This rule is crucial for those who may make impulsive purchases they later regret.
Full Disclosure
Consumers have the right to full disclosure of information on products and services. When purchasing an item, companies must provide all relevant details, such as price, associated fees, and return policies. This transparency helps consumers make informed decisions and protects them from hidden charges.
Safety
All products must meet standard safety regulations before they are sold. In the EU, for instance, the CE marking confirms that a product complies with these standards. As a consumer, you are entitled to assume that anything you purchase is safe for its intended use.
False Advertising
Misleading advertisements are not just unethical—they are illegal. Laws such as the UK’s Consumer Protection from Unfair Trading Regulations 2008 protect against false claims that can deceive reasonable shoppers. Consumers can report suspicious advertising, and regulatory bodies are obligated to investigate.
Free Repair
Under laws like the Australian Consumer Law, if a product fails to meet a consumer guarantee, you may be entitled to a repair, replacement, or refund. Knowing these options empowers consumers to assert their rights when products fail to perform as promised.
Privacy
Consumers have rights protecting the privacy of their personal data. Companies must follow strict guidelines, such as GDPR in Europe, which regulate the collection, use, and storage of personal information. This ensures that your data isn’t misused or carelessly handled.
Fair Credit
The Equal Credit Opportunity Act in the U.S. prohibits discrimination against applicants on the basis of race, color, religion, national origin, sex, marital status, or age. This law ensures that all consumers are given a fair chance to obtain credit.
Information
Authorities often provide educational resources to help consumers understand their rights. For example, the Consumer Financial Protection Bureau in the U.S. offers guides and workshops on financial products to help consumers make more informed choices.
Binding Arbitration
In some jurisdictions, consumers have the right to seek legal action in court, despite any pre-signed arbitration clauses. Legislation such as the Arbitration Fairness Act proposed in the U.S. seeks to affirm this right.
Digital Purchases
Digital content consumers are protected under laws like the EU’s Consumer Rights Directive, which covers apps, eBooks, and online games. These laws ensure that digital content is of satisfactory quality, fit for purpose, and as described. Consumers can often seek redress if digital content fails to meet these standards.
Cancel Subscriptions
Laws in many countries require companies to make cancelling subscriptions as easy as signing up. California’s SB-313, for instance, mandates that cancellation of services like gyms or streaming subscriptions can be done online. This prevents companies from trapping consumers in hard-to-escape contracts.
Predatory Lending
Predatory lending practices are prohibited, with laws in place to protect consumers from unfair loan terms. These regulations require lenders to disclose all loan terms and obtain proper consent. They aim to prevent practices that exploit consumers’ lack of knowledge or financial desperation.
Product Warranties
Warranties must be honored as stated. In the U.S., the Magnuson-Moss Warranty Act mandates that manufacturers and sellers deliver on the terms of their warranties. As a consumer, you should always check the warranty terms to ensure they are fair and reasonable.
Online Reviews
Consumers have the right to access honest and transparent reviews online. Regulations prevent companies from posting fake reviews or deleting negative feedback without a valid reason. This maintains the integrity of online marketplaces and helps consumers make better choices.
Cooling Period
Financial products often come with a mandatory cooling-off period. This period allows consumers to reconsider their purchase decisions and withdraw without penalty. It’s especially useful for complex agreements like insurance policies or investment bonds.
Debt Collection
Unfair debt collection practices are illegal under laws like the U.S. Fair Debt Collection Practices Act. Debt collectors cannot harass or deceive individuals to collect debts. Consumers have the right to dispute the debt and request validation of the amount claimed.
Unilateral Changes
Companies cannot change contract terms unilaterally without prior notice and consumer consent. In many regions, any significant amendment to service terms requires notifying the consumer. This protects consumers from unexpected changes that could affect their service usage.
Marketing Communications
Consumers can withdraw their consent to receive marketing emails or messages at any time. Legislation such as the CAN-SPAM Act in the U.S. governs the conduct of email marketing. This right ensures that consumers are not bombarded with unwanted communications.
Fairness
Laws like the GDPR grant consumers the right to not be subject solely to automated decisions, including profiling, which produces legal effects concerning them. This is significant in the age of AI and machine learning, where decisions about credit, hiring, and other personal aspects can be automated.
Legal Recourse
Consumers have the right to pursue legal recourse if they believe their rights have been violated. Many countries provide free or low-cost legal aid services for consumers. This ensures that even consumers who cannot afford private legal counsel can seek justice.
Overbooking
Laws protect consumers from being unfairly displaced due to overbooking of flights or hotels. Regulations require companies to offer compensation or alternative arrangements when this occurs. This is essential in maintaining consumer trust and accountability.
Challenge Blacklist
If a consumer is unfairly blacklisted by a retailer or financial institution, they have the right to challenge and seek removal from that list. This right is crucial for preventing damage to one’s creditworthiness or consumer reputation without just cause.
Fair Pricing
Price gouging during emergencies is illegal in many jurisdictions. Laws ensure that during a crisis, such as a natural disaster, consumers are not charged exorbitant prices for essential goods. This protects consumers from exploitation when they are most vulnerable.
Class Action
Consumers can band together to file a class action lawsuit if they suffer similar damages from a product or service. This is particularly effective in cases where individual claims might be too small to pursue alone. It levels the playing field against large corporations.
Ethical Treatment
Consumers are entitled to respectful and non-discriminatory service. Regulations in various countries ensure that consumers are not treated unfairly based on race, gender, age, or any other characteristic. This promotes an inclusive and fair market environment where all consumers feel valued.
Josh Dudick
Josh is a financial expert with over 15 years of experience on Wall Street as a senior market strategist and trader. His career has spanned from working on the New York Stock Exchange floor to investment management and portfolio trading at Citibank, Chicago Trading Company, and Flow Traders.
Josh graduated from Cornell University with a degree from the Dyson School of Applied Economics & Management at the SC Johnson College of Business. He has held multiple professional licenses during his career, including FINRA Series 3, 7, 24, 55, Nasdaq OMX, Xetra & Eurex (German), and SIX (Swiss) trading licenses. Josh served as a senior trader and strategist, business partner, and head of futures in his former roles on Wall Street.
Josh's work and authoritative advice have appeared in major publications like Nasdaq, Forbes, The Sun, Yahoo! Finance, CBS News, Fortune, The Street, MSN Money, and Go Banking Rates. Josh currently holds areas of expertise in investing, wealth management, capital markets, taxes, real estate, cryptocurrencies, and personal finance.
Josh currently runs a wealth management business and investment firm. Additionally, he is the founder and CEO of Top Dollar, where he teaches others how to build 6-figure passive income with smart money strategies that he uses professionally.