CONTENT STATEMENT
Consumer protection laws provide financial safeguards.
CONTENT ELABORATION
Consumer protection laws at the federal, state and local levels are designed to provide safeguards for personal finances. These laws are monitored and enforced by different government organizations including the U.S. Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC) and individual state consumer protection agencies.
The SEC regulates the buying and selling of stocks. It monitors brokerage firms and stock exchanges.
Agencies provide financial safeguards, including:
- protecting consumers against unfair, deceptive or fraudulent practices;
- enforcing consumer protection laws enacted by Congress; and
- regulating financial practices.
Other organizations and legal constraints at both the local and state levels exist to help protect individuals and their financial resources (e.g., Better Business Bureaus, Ohio Consumers’ Council, lemon laws).
EXPECTATIONS FOR LEARNING
Explain how consumer protection laws provide financial safeguards.