- Research “THE FEDERAL TRADE COMMISSION” and “THE CONSUMER FINANCIAL PROTECTION BUREAU”
- Address, at a minimum, the following:
- The legal protections afforded to consumers by these bodies
- The rules/laws/regulations that these bodies apply/enforce to provide those protections
- The steps that are taken to investigate/enforce violations of consumer rights
- The penalties that may be imposed for violating these rules/laws/regulations
- The “real” impact and significance of their activities on U.S. commerce
- Cite 3-5 cases along with brief, case summaries to present examples of how at least one of these bodies (and their rules/laws/regulations) has protected a consumer.
- Anything else that you can add
Guidelines for Submission:
- Follow the appropriate rules for citation as they apply to your discipline
- APA for business students
- To fully address the main points of this Act, at least five pages would be required (not including cover page or reference page)
- At least five credible sources are required (i.e. scholarly or professional, not wiki sites)
- Submit as a Word Document, Double-Spaced, Times New Roman, 12 Point Font with 1″ Margins
Consumer protection is a fundamental requirement for a business to prosper. Therefore, for the business to continue, policies are put in place to ensure profitability is attained. Through protection, the clients find to get many benefits. These benefits include, first, an excellent piece of mind. The sellers and the consumers will be secure. Thus, the business goals are attained with ease. Secondly, protection of the directors’ financial share. Illness or death can occur. Through business protection, the share is put in place. Thirdly, transparency among the stakeholders. Therefore, indicating a good practice within the business environment. Fourthly, lessens pressure among the clients who might be ill. They will take time to heal and come back to work without pressure. Finally, disaster recovery strategy is indicated. The strategy ensures the customers are well protected by making the business to be stable. However, these benefits can be implemented because of the policies made (Rao, 2017). These policies can be term assurance, life protection plan, or term assurance with illness cover. Consequently, the Federal Trade Commission and the Consumer Financial Protection Bureau are the bodies made look at business in a broad perspective. Offices in most parts of the world have been established to ensure the protection of consumers’ rights is implemented. These bodies can develop policies under the interests of American consumers. The economy in the American states would advance due to innovation and enough security in business. Partnerships have promoted the working of the bodies all over the world. Therefore, this paper discusses how The Federal Trade Commission and The Consumer Financial Protection Bureau impact consumers.
Consumers are protected from all social evils that arise during the trade. These cases have a negative impact on the consumers. The consumers end up losing a lot through fraudulent cases majorly phishing scams, bad businesses and deceitful acts (Rao, 2017). These bodies have protected consumers through the following ways. Conducting investigations over the complaints reported. The bodies can travel to the place in which the claim arose. Investigations are done thoroughly using interviews, observations and other forms of data collection. Once investigations are done, analysis of the collected data is done to take the next step. The civil investigative demands do all investigations. These people are responsible for checking on the documents containing the complaints. If the violation has been made, a penalty of 10000 dollars per violation is awarded (Rao, 2017). Moreover, the commission ensures that the companies got performing fraudulent services are sued and the law is enacted. The bodies report complaints made based on security and false adverts. A follow up is made to ensure that the responsible companies are handed over to the federal court for judgment. A fair judgment is expected at the end of all these convictions. Also, the commission has developed rules that ensure all the consumers are treated fairly. Therefore, peaceful business-minded consumers are protected. Finally, the commission ensures that the consumers are informed based on these corrupt malpractices. Seminars and workshops are scheduled in different parts to educate the consumers. The consumers will be aware of their rights and responsibilities. Upon breakage of these rights, the consumers can speak out and forward the complaints to the respective agencies (Heidi, 2017).
The following are the steps in which investigation of violation of consumer rights are done. First, establish the court that will handle the complaints. Ensure that the violated rights are read in the Acts. However, investigations are done in organizations, businesses and the people reported, not forgetting the banks and other financial institutions. Documents with the complaints are produced according to the FTC Act, sections 9 and 20 (Heidi, 2017). Secondly, a petition filed in the courts. This will set a pace for the clear investigation and judgment to reach the right path of the law. The commission will share confidential information in the files sent to court on matters that concern consumer rights. After that, the prosecution will be based on the confidential information. Finally, the commission orders are enforced after the critical check on the complaints. The penalty is given to those who have violated the consumers’ rights. The pending enforcements are left and identified in the courts’ report.
The following are the two penalties imposed to those who violate rules which include civil and criminal penalties. Wrongdoers are imposed to the civil penalty by the government agencies. Documents such as permits and the licenses are not granted to those who violate the regulations. On the other hand, the individuals got breaking the law are awarded a penalty to pay money. This happens in the organizations where individuals are there to make the consumers insecure (Sengupta, 2012).
The United States has a positive impact on commerce growing. The rights of the consumers are protected. Therefore, the businesses are flourishing with zero tolerance to social evils like corruption. Also, many companies have grown in the United States (Heidi, 2017). The companies and the businesses have adopted what they are educated through the two bodies: The Federal Trade Commission and The Consumer Protection Bureau, therefore contributing to the economy of the states.
The following are examples of how the consumer financial protection Bureau has chipped in. First, Banner Healthcare Breach Banner Healthcare exposed that on July 7, 2016, hackers gained access to information of 3, 620, 000 individuals. The individuals included patients, health plan members, clinicians and visitors who bought food and beverages from the different branches of the facility. The hackers were after debit and credit card information at twenty-seven food stands in Arizona, Alaska, Colorado, and Wyoming.
Secondly, Valley Anesthesiology Consultants Hack. Valley Anesthesiology Consultants fall victim to hacking on June 13, 2016. The organization did not at first establish that a third party did crucial access information kept in its database. However, it appeared later that a third party did access information of 882, 590 patients, employees, and providers. The organization sent emails to affected individuals. They were expected to review their information and let the organization know of any malicious activity (Gordon, 2016). Though the system accessed contained only patient names, clinical information, and the name of insurer, insurance identification numbers and social security numbers only, the incident triggered concern over the security of information in the organization. On the side of provider, the information accessed by the criminals included names, dates of birth, social security numbers, professional license numbers, Drug Enforcement Agency and National Provider Identifier numbers and bank account information among others (Sengupta, 2012). The employee records accessed included names, dates of birth, addresses, social security numbers, bank account information and financial information. As a result, the criminal event caused fear among the affected individuals and unease among the organization management. The doubts that the crime did happen showed that it is crucial for investigations before concluding that there was an illegal access to information. The organization needed to comply with the HIPAA security rules and see that its systems are well guarded and useful in assuring the security of information. The organization did not introduce any drastic measure to bar criminals from tampering further with the information (HIPAA, 2017). The reason for this is that the organization felt that the breach did not happen (Gordon, 2016). The notification to those affected was not enough to stop the criminals. However, it was an essential step as it was necessary first to find evidence supporting the claim that a third party gained access to valuable information kept in the organization.
The Consumer Financial Protection Bureau came up with security. Every organization was given a security department with highly educated technicians. These technicians protected data, stopped criminal activity and investigated any criminal acts. The consumers, employees, patients, and customers were educated on the need to keep the passwords they use safely. Moreover, the consumers were trained to have unique passwords to be used in accessing database systems (Heidi, 2017). They developed ways to filter information sent to the system and bar any unauthorized individuals from obtaining organization’s information. Moreover, the team would see that people are entering and exiting the organization so that they do not steal valuable information of the organization (Sengupta, 2012). This plan became effective in that it allowed security threat be stopped, reported earlier and criminals identified. The plan also gave confidence to patients, employees, and other shareholders to have their information stored in the organizational system.
In conclusion, the economy of the United States has increased tremendously due to perfect ways of protecting consumers’ right. The federal, local and the state has improved the protection of the costumes by supporting federal trade commission and the consumer protection bureau. The legal system is the best way of attaining peaceful-minded consumers.
Gordon, R. (2016). Arizona Anesthesia Group Notifies 882, 590 Patients of Data Breach. Retrieved on February 21, 2018, from
Heidi, j. & Leary, j. (2017). Policy watch: Research Priorities on Disclosure at the Consumer Financial Protection Bureau. Journal of public policy& marketing 36(1) 184-191.
HIPAA (2017). Largest Healthcare Data Breaches of 2016. Retrieved on February 21, 2018,
Rao, A. & Wang, E. (2017). Demand for ‘Healthy’ Products: False Claims and FCT Regulation. Journal of Marketing Research 54(6) 968-989.
Sengupta, S. & Pariroth, N. (2012). The Bright Side of Being Hacked. New York Times. 161(55701), 1.