Consumer defense, also known as consumer protection, refers to the legal protection of a consumer’s rights to a fair and equitable treatment in a transaction. It is usually provided through a contract or regulation. There are many different forms of consumer defense.
For example, a consumer may be able to recover money owed to a third party in a consumer transaction. In the context of this article, a third party is any individual or company not involved in the transaction. A consumer cannot sue a third party for money borrowed, but may be able to claim against a bank or other lender that has lent to the consumer. This might be a case governed by a statute similar to the FTC Regulations.
One of the more interesting aspects of the consumer defensive sector is the fact that its revenue growth has remained robust throughout the decade. These sectors include utilities, healthcare, and other industries that offer consumers products and services they will still need in tough economic times.
In order to distinguish a consumer defense from a flimsy product or service, producers make use of a variety of marketing strategies. They include advertising, labeling, displays, try-out periods, sales assistance, and more. Moreover, they restructure their relationships to preserve the advantage of the consumer.
For example, a consumer can take advantage of a product’s warranty. However, it is not always clear what the consumer can expect in return. Nonetheless, a holder in due course (HIDC) doctrine has been codified in the Uniform Commercial Code (UCC). This doctrine allows an assignee to enforce an obligation arising from a transaction.
The first major step in the consumer defense process is to recognize that the holder in due course does not protect the buyer from open ended personal injury claims. Instead, the holder in due course only protects the buyer from the lender’s ability to recover the consumer’s down payment.
Another important step is to understand the consumer defense law. A law firm can provide expert and experienced attorneys to help you navigate the minefield of litigation. Some firms offer extensive experience in cross-border litigation, particularly in the area of product liability. Other firms handle more simple matters such as disputes involving the use of credit cards and a consumer’s right to cancel a purchase.
Finally, the Consumer Protection and Defense Code of Peru, or CPDPP, has been a boon to consumers. Not only does the code establish a basic standard for consumer rights and protections, it also coordinates with other governmental institutions, the business community, and the civil society. Whether you are a consumer or a business, it’s important to read up on all the laws and regulations available to you. You can find more information about the CPDPP online.
Overall, the consumer defensive sector is a good bet for investors seeking a low risk portfolio that will grow with the broader economy. As long as you do your research, you should be able to find a few good consumer defensive stocks.