GFL Strand 5, Standard 5: Consumer Protection Laws

What is the primary purpose of consumer protection laws?

• To safeguard consumers from fraud and deceptive practices

• To regulate wages across industries

• To set pricing standards for businesses

• To ensure all loans are interest-free

What does the Federal Trade Commission (FTC) oversee?

• Credit score calculations

• Protection against unfair business practices

• Setting minimum wages for employees

• Approving all business licenses

What is identity theft?

• The use of another person's personal information for fraud

• Losing a credit card or ID

• Receiving multiple spam emails

• Filing a tax return late

What is phishing?

• An online scam where individuals are tricked into providing sensitive information

• A type of identity theft using physical mail

• A method of tracking online purchases

• An error in a credit report

How can consumers safely dispose of sensitive financial documents?

• By throwing them in the trash

• By shredding them before disposal

• By storing them indefinitely

• By giving them to a bank for safekeeping

What does the term “predatory lending” refer to?

• Offering loans at reasonable interest rates

• Lending practices with unfair terms and excessive fees

• Lending money only to high-risk borrowers

• Government-subsidized loans

What is the purpose of a credit freeze?

• To prevent identity theft by restricting access to your credit report

• To lower credit card interest rates

• To automatically dispute credit report errors

• To eliminate existing debts

What is the role of the Consumer Financial Protection Bureau (CFPB)?

• Enforcing federal laws to protect consumers in the financial sector

• Monitoring international trade agreements

• Regulating the interest rates on savings accounts

• Approving loan applications for businesses

What is the best way to avoid phishing scams?

• Respond to unfamiliar emails quickly

• Avoid clicking on links in suspicious emails

• Always pay with cash instead of cards

• Report phishing only after financial loss

What is an example of a government resource for consumer protection?

• AnnualCreditReport.com

• Credit bureau websites

• Payday loan providers

• Social media platforms