2.  For years, smart shoppers abided by the term Caveat Emptor, or “let the buyer beware”.  However now, society demands that manufacturers be held responsible for foreseeable injuries to people who use their products, hence the term Caveat Venditor: “let the seller be aware”.

3.  Any act that misleads consumers.  Fraudulent misrepresentation  Work-at-home schemes  Unordered merchandise  Bait-and-switch  Therefore, most states have enacted either the Uniform Deceptive Trade Practices Act or their own similar laws.  DTPA: enacted to protect consumers against false, misleading, and deceptive business and insurance practices.

4.  Apply to all transactions between consumers and people conducting business.  When you buy things for personal use from a business, consumer laws protect you.  However, if you buy something directly from another consumer, then consumer protection laws in most states do not protect you.  The Federal Trade Commission (FTC) and the Bureau of Consumer Protection investigate those violations to laws.

5. FRAUDULENT MISREPRESENTATION  Any statement that deceives the buyer.  Usually occurs when a seller misstates the facts about something that is important to the consumer.  Ex.) Making false statements about or not disclosing any fact that would cause a buyer to avoid entering into a contract. WORK-AT-HOME SCHEMES  Offers sounding attractive such as “Would you like to earn hundreds of dollars a week at home in your leisure time?”  Some plans are legitimate, however, home employment schemes are among the oldest kinds of classified advertising fraud.

6. UNORDERED MERCHANDISE  Under federal and state laws, unordered merchandise may be considered a gift.  Two kinds of products can be sent legally without consumer’s consent: manufacturers’ free samples and merchandise mailed by charities. FALSE ADVERTISING  FTC regulates false advertising on the national level and has the power to issue Cease and Desist Orders: legally binding orders to stop a practice that would mislead the public.  Ex.) Bait and switch advertising

7.  When a store advertises bargains that do not really exist to lure customers in hopes that they will buy more expensive merchandise. Illegal.  The following sales practices may be signs of bait and switch:  Attempting to discourage customers by criticizing advertised products.  Claiming the advertised products are out of stock..  Cannot promise delivery within reasonable period of time.  Demonstrating product more expensive than advertised.

8. 1. Using one of the aforementioned deceptive sales practices, you are to design and create an advertisement depicting that particular sales practice. 2. On the back of the advertisement, you are to explain your ad and tell me why you feel the ad would be misleading to consumers.