Know Your Rights
Federal and state laws protect consumers. Learn what they are and how to use them.
Federal Laws
ROSCA - Restore Online Shoppers' Confidence Act
15 U.S.C. § 8403ROSCA protects consumers from negative option marketing (automatic renewals, free trial conversions, etc.). It requires sellers to meet strict disclosure and consent requirements before charging consumers.
Requirements for Sellers:
- 1Clear Disclosure
All material terms must be clearly and conspicuously disclosed BEFORE obtaining billing information.
- 2Express Informed Consent
Must obtain consumer's express informed consent BEFORE charging.
- 3Simple Cancellation
Must provide simple mechanisms for consumers to stop recurring charges.
Penalties
Up to $53,088 per violation
Enforcement
Federal Trade Commission (FTC)
Consumer Review Fairness Act
15 U.S.C. § 45bThe CRFA protects consumers' rights to share honest reviews about businesses. Companies cannot use contract clauses to prohibit or penalize honest reviews.
Your Protected Rights:
- Share honest reviews of products and services
- Post truthful negative feedback without retaliation
- Ignore non-disparagement clauses for honest reviews
Electronic Fund Transfer Act (EFTA)
15 U.S.C. § 1693 | Regulation EEFTA protects consumers using debit cards, ACH transfers, and recurring EFT payments. When unauthorized charges appear, your bank must investigate and may owe you provisional credit.
Your Rights:
- 160-Day Reporting Window
Report unauthorized transfers within 60 days of your statement date.
- 2Bank Must Investigate
Your bank has 10 business days to investigate your claim (45 days for complex cases).
- 3Provisional Credit
If investigation takes longer than 10 days, bank must credit disputed amount while investigating.
- 4Burden on Bank
For unauthorized EFTs, the bank must prove the transaction was authorized—not you.
Liability Limits
Report within 2 days: $50 max · Within 60 days: $500 max
Covers
Debit cards, ACH, ATM, recurring payments
State Laws
Each state has its own consumer protection laws. Many provide stronger protections than federal law, including statutory damages and attorney fee recovery.
California provides some of the strongest consumer protections in the nation through the CLRA and UCL. Automatic renewal laws are particularly strict.
Key Protections:
- Automatic renewal disclosures required
- Easy cancellation mechanisms mandatory
- Restitution and injunctive relief
- Attorney fees for prevailing consumers
Don't see your state? Check our resources for state AG complaint links.
Common Law Claims
In addition to statutory protections, common law claims provide powerful remedies for consumers harmed by corporate misconduct.
Unjust Enrichment
Common Law DoctrineWhen a company retains money that, in equity and good conscience, belongs to you, they have been unjustly enriched. Courts can order restitution even without a specific statute.
Elements to Prove:
- 1Benefit Conferred
You gave money to the company (payment for services).
- 2Appreciation of Benefit
The company received and retained your money.
- 3Unjust Retention
It would be inequitable for the company to retain the benefit without paying for it.
"When management admits an employee made an error, then keeps the money anyway, they have been unjustly enriched at the consumer's expense."
Fraud in the Inducement
Common Law + State StatutesWhen you're tricked into signing a contract through false statements or omissions, the contract may be voidable. Even integration clauses don't protect against fraud.
Elements to Prove:
- 1False Representation
A material misstatement of fact was made (e.g., "no recurring charges").
- 2Knowledge or Recklessness
The statement was made knowingly, recklessly, or with constructive knowledge.
- 3Intent to Induce
The statement was made to induce you to enter the contract.
- 4Reasonable Reliance
You reasonably relied on the statement when signing.
- 5Damages
You suffered harm as a result (financial loss).
Important Note
Integration clauses cannot shield a party from fraud claims. If you were induced to sign through misrepresentation, the entire contract may be voidable.
Understanding Your Contract
Contracts often contain clauses designed to limit your rights. Understanding these clauses is essential to fighting back effectively.
Integration Clauses
States that the written contract is the complete agreement and supersedes all prior discussions.
"This Agreement constitutes the entire agreement between the parties..."
Arbitration Clauses
Requires disputes be resolved through private arbitration instead of court.
"Any dispute shall be resolved through binding arbitration..."
Class Action Waivers
Prevents you from joining class action lawsuits against the company.
"You waive the right to participate in any class action..."
Small Claims Loophole
Many arbitration clauses explicitly carve out small claims court.
"...except for claims that may be brought in small claims court."
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