Consumer Actions Against Unfair or Deceptive Acts or Practices The Private Uses of Federal Trade Commission Jurisprudence

• NCJ Number: 74425
• Journal: George Washington Law Review Volume: 48 Issue: 4 Dated: (May 1980) Pages: 521-564
• Author(s): M A Leaffer; M H Lipson
• Date Published: 1980
• Length: 44 pages
• Publication Format: Article
• Language: English
• Country: United States of America

Annotation

This article examines the provisions and impact of State consumer protection statutes and the Federal Trade Commission (FTC) Act.

Abstract

Between the 1960's and the present, most States enacted consumer protection legislation against unfair or deceptive acts or practices (UDAP); these laws were designed to parallel and supplement the Federal Trade Commission Act. In contrast to the FTC Act and most interpretations of it, many State UDAP statutes contain provisions giving consumers the right to bring civil actions for damages and other forms of relief against those who violate the law. However, these private remedy provisions have been sporadically used. The value of UDAP statutes in private consumer protection litigation is severely underestimated. The consumer protection jurisprudence under section 5 of the FTC Act has great importance to consumers. Moreover, State courts will use it in construing UDAP provisions. Part I of this article focuses on the Federal courts' treatment of private claims asserted under section 5, and on the FTC's historical and current role in consumer protection. Part II continues with a detailed description of the UDAP statutes and a discussion of the manner in which many State courts have interpreted them in light of the FTC's jurisprudence. This section also examines some practical aspects of UDAP consumer litigation, including remedies, class actions, and awards of attorneys' fees. Part III offers a justification for these private actions and some speculation on future prospects under the statutes. In particular, State courts are expected to begin to adopt a per se approach for acts that consumers challenge in UDAP actions. Litigants should urge that administrative rules and statutory provisions create categories of UDAP violations and establish public policies to define areas not specifically included in existing provisions. Over 225 footnotes and an appended chart comparing different states' laws are provided. (Author abstract modified).