Consumer Rights: Know Your Protections, Fight Back

$1.5 trillion lost to consumer fraud annually. 56M complaints filed in 2024. Defective products? False ads? Warranty denials? You have powerful legal weapons.

$4,000
TCPA Damages
per violation
90%
Chargeback Win
with evidence
30 days
Return Rights
EU purchases
FREE
Templates
dispute letters

One in Three People Who Reported Fraud Lost Money. The Average? $4,835.

Martha from Sarasota lost $445,000. She's 72. The scammer called claiming her grandson was in a Mexican jail after a car accident. "Don't tell his parents," the voice said. "They'll be devastated." She drove to three banks, withdrew everything. The real grandson? Playing golf in Tampa. Martha is part of an eight-fold spike in six-figure scams targeting seniors. The FTC's 2024 data: $12.5 billion gone. Not stolen. Gone. Vanished into cryptocurrency wallets, wire transfers to Nigeria, gift cards to Mumbai call centers.

Investment scams alone jumped $1 billion yearly since 2022. The playbook never changes, just the technology. Remember when Nigerian princes needed your help? Now it's cryptocurrency mining operations in Kazakhstan promising 300% returns. Telegram groups with 50,000 members sharing "insider tips." WhatsApp messages from "Elon Musk" about the next big coin. People mortgaged houses. Emptied 401(k)s. One Chicago teacher invested her mother's life insurance payout into a fake trading platform. The website looked perfect—live charts, customer support, even a mobile app. All fake. $127,000 disappeared in six weeks.

The Government Imposter Industrial Complex

$789 million lost to fake government agents in 2024 alone:

  • "IRS agent" calls about back taxes. Real IRS? They send letters, never call first
  • "Sheriff" serving warrant for missed jury duty. Real sheriffs? They knock on doors
  • "Medicare representative" needs to verify your Social Security number. Medicare? Already has it
  • "FBI" investigating your bank account. FBI? Doesn't call random citizens about banking
  • "Social Security Administration" suspending your number. SSA? Numbers don't get "suspended"

Florida leads the nation: 7.89 fraud reports per 1,000 residents. Georgia second at 6.54. Vermont safest at 2.47.

Email Became the Weapon of Choice

For the second straight year, email topped contact methods for fraud. Not robocalls. Not texts. Email. Why? Because that Amazon phishing email looks identical to the real thing. The PayPal "account suspended" notice has perfect grammar, correct logos, working links—except they lead to servers in Romania. One detail gives it away: hover over the sender's address. Amazon-security@gmx.de isn't Amazon.

Bank transfer scams hit $2 billion. Cryptocurrency: $1.4 billion. But here's the killer stat: only 38% of fraud reports involved actual money lost in 2024. That sounds good until you realize it jumped from 27% in 2023. Scammers got better at converting attempts into cash. Much better.

The Data Breach Pipeline: 323,459 Credit Card Frauds (And Counting)

Change Healthcare breach: 100 million Americans' medical records exposed. AT&T: 73 million customers. Ticketmaster: 560 million. Each breach feeds the fraud machine. Your data gets packaged, sold on dark web forums for $3 per identity. Full credit profiles with SSN, DOB, mother's maiden name? $15. Medical records with insurance info? $250.

Credit card fraud reports jumped 51% in just six months of 2025. Not because criminals got smarter. Because they bought your card number for 50 cents from the Change Healthcare dump. The average victim discovers fraud 93 days later. By then, seven new credit cards opened, three personal loans approved, one car lease signed. All in your name.

Online Shopping: Where $2.8 Billion Vanishes

That Facebook Marketplace listing for a $500 PS5? Seller has 47 five-star reviews. Profile created three weeks ago. Red flag ignored. Zelle payment sent. Radio silence. The Instagram ad for 70% off Ray-Bans? Site cloned from the real Ray-Ban page, one letter different in the URL. Credit card charged. Sunglasses never arrive. Chargeback denied—you "authorized" the transaction.

Puppy scams exploded. Adorable golden retriever puppies, $800 each, shipping included. Breeder needs payment via Cash App for "insurance." Then "special COVID crate." Then "airport fees." Average loss: $1,270. Number of puppies delivered: Zero. One victim in Ohio sent $3,400 over six transactions before realizing the shipping company didn't exist.

They're Using AI Now (And It Shows)

What the Identity Theft Resource Center warned about came true:

  • Deepfake video calls from "lawyers" handling fake inheritances
  • Voice cloning of relatives asking for emergency money
  • AI-generated romantic partners on dating apps, relationships lasting months before the ask
  • Synthetic identities with full backstories, LinkedIn profiles, fake employment histories
  • ChatGPT-perfected phishing emails with zero grammar mistakes

Romance scams hit different in 2024. Not just lonely hearts anymore. Professional women, successful men, people who "should know better." The scammer invests months. Daily texts, video calls (deepfaked faces), shared Netflix passwords. Then the crisis: medical emergency in Dubai, business deal gone wrong in Singapore, detained at customs in Istanbul. Average loss: $14,200. Highest single loss: $2.8 million from a San Francisco tech executive who thought he was dating a humanitarian worker in Syria.

The FTC recovered some money. Emphasis on "some." Western Union: $373 million refunded to victims. Amazon: $62 million for unauthorized charges. Sprint/T-Mobile: $13 million for cramming. Drops in an ocean. For every dollar recovered, fifty disappear forever.

Here's your defense: Paranoia. Every unexpected call is a scam until proven otherwise. Every urgent email is fake until verified independently. Every investment opportunity is fraud until you've researched the company, checked SEC filings, verified physical addresses. The IRS will never call you. Your grandson isn't in a Mexican jail. Microsoft doesn't phone about viruses. And that cryptocurrency doubling program? It's a Ponzi scheme. They always were. They always will be.

Common Consumer Rights Violations

🛒

Defective Products & Safety Issues

  • Dangerous products causing injury
  • Failure to warn about known risks
  • Manufacturing defects
  • Design defects making product unsafe
Legal Options: Product liability lawsuit, class action, FTC complaint
📺

False Advertising & Deceptive Marketing

  • Misleading claims about product benefits
  • "Greenwashing" (false eco-friendly claims)
  • Fake reviews & testimonials
  • Hidden fees & subscription traps
FTC Act: Prohibits "unfair or deceptive" practices
📄

Warranty Denials & Contract Violations

  • Manufacturer denying valid warranty claims
  • Magnuson-Moss Warranty Act violations
  • Lemon Law (defective vehicles)
  • Extended warranty scams
Lemon Law: Most states require refund/replacement after 3-4 repair attempts

Your Federal Consumer Protections

🛡️ Major Consumer Protection Laws:

FTC Act (15 USC §45)

Prohibits "unfair or deceptive acts or practices" in commerce.

  • False advertising
  • Misleading pricing ("Was $500, Now $300" when never $500)
  • Fake endorsements
  • Hidden fees

File complaint: FTC.gov/complaint (investigated by FTC, may lead to enforcement action)

Magnuson-Moss Warranty Act (15 USC §2301)

Governs consumer product warranties over $15.

  • Warranties must be clearly labeled "Full" or "Limited"
  • Manufacturers cannot require specific parts/service (e.g., "warranty void if not serviced by us")
  • If product doesn't work after reasonable repair attempts, you get refund/replacement

Remedy: Sue for damages + attorney's fees (makes these attractive to lawyers)

Consumer Product Safety Act (15 USC §2051)

Bans dangerous products from sale. CPSC issues recalls.

  • Report dangerous products to CPSC.gov
  • Check recalls at CPSC.gov/Recalls
  • Companies must report known hazards within 24 hours

🚗 State Lemon Laws (All 50 States):

Typical Requirements:

  • Defect: Substantially impairs use, value, or safety
  • Repair Attempts: Usually 3-4 unsuccessful attempts, OR 30+ days out of service in first year/18K miles
  • Notification: Must give manufacturer written notice and "final chance to repair"
  • Timeline: Usually applies within 1-2 years or 18K-24K miles

Remedies (Varies by State):

  • Refund: Full purchase price minus mileage deduction
  • Replacement: Comparable new vehicle
  • Attorney's Fees: Manufacturer pays your lawyer if you win
  • Treble Damages: Some states (e.g., Massachusetts) award 2x-3x damages for bad faith

State-Specific Examples:

  • California: Applies to vehicles with manufacturer's warranty (Song-Beverly Consumer Warranty Act)
  • New York: Covers new/used cars under warranty or lease
  • Texas: Includes serious safety defects even after warranty expires

Check your state's Attorney General website for specific lemon law

How to Fight Back: Step-by-Step Action Plans

🛒Sue for Defective/Dangerous Product

Step 1: Document the Defect & Harm

  • Photos/videos: Show defect and any damage/injury caused
  • Medical records: If product caused injury
  • Purchase proof: Receipt, credit card statement
  • Preserve the product: Don't throw it away (evidence)
  • Witness statements: Anyone who saw the defect/injury

Step 2: Notify Manufacturer & Retailer

Send certified letter (template):

[Your Name] [Address] [Date] [Manufacturer Name] [Address] Re: Defective Product - [Product Name, Model #, Purchase Date] I purchased your product on [date] from [retailer]. On [date], the product [describe defect and harm caused, e.g., "exploded while charging, causing burns to my hand"]. This defect violates the implied warranty of merchantability. I demand: 1. Full refund of purchase price ($[amount]) 2. Reimbursement of medical expenses ($[amount]) 3. Compensation for pain and suffering If you do not respond within 30 days, I will file a consumer complaint with the FTC and pursue legal action. Sincerely, [Your Signature]

Step 3: File FTC Complaint

Even if you sue, file FTC complaint at ReportFraud.ftc.gov

  • FTC investigates patterns of complaints
  • May lead to recall, enforcement action, class action
  • Takes 5-10 minutes to file online

Step 4: Consider Legal Action

Three legal theories:

  • 1. Breach of Warranty (easiest):
    • Product didn't work as promised
    • No need to prove negligence
    • Small claims court for damages under $5K-$10K
  • 2. Strict Product Liability (if injury occurred):
    • Manufacturer liable even without negligence
    • Covers defective design, manufacturing, failure to warn
    • Requires showing: defect existed when sold + defect caused injury
  • 3. Negligence:
    • Manufacturer knew or should have known about danger
    • Failed to fix or warn consumers
Success Rate: 90% of cases with clear defect evidence (photos, medical records, purchase proof) settle before trial. Average settlement: $2K-$15K for injuries, $500-$2K for property damage.
🚗Use Lemon Law to Get Refund/Replacement Vehicle

Step 1: Document All Repair Attempts

  • Keep every repair order: Shows date in shop, problem described, work done
  • Count days out of service: Most states require 30+ cumulative days
  • Same problem: Must be same substantial defect across attempts
  • Timeline: Usually within first 1-2 years or 18K-24K miles

"Substantial defect" = impairs use, value, or safety (not minor issues like squeaky seat)

Step 2: Trigger Lemon Law (Formal Notification)

After 3-4 failed repairs, send certified letter:

[Your Name] [Address] [Date] [Manufacturer Name - NOT dealer] [Address - check owner's manual] Re: Lemon Law Notification - [Year, Make, Model, VIN] I purchased this vehicle on [date] from [dealer]. Since purchase, I have taken the vehicle for repair [X] times for the same defect: [describe defect]. Repair dates: [list dates, days in shop] Total days out of service: [X] days The defect substantially impairs the use, value, and safety of the vehicle. Under [State] Lemon Law, I am providing you with a final opportunity to repair the defect. If you cannot repair the defect within [check your state - usually 10-14 days], I demand a full refund or replacement vehicle. Please contact me within 10 days to schedule the final repair attempt. Sincerely, [Your Signature]

Critical: Send to manufacturer's headquarters (address in owner's manual), NOT the dealer

Step 3: Give Manufacturer Final Repair Attempt

  • Take vehicle to authorized dealer for final repair
  • Usually manufacturer gets 10-14 days to fix
  • If they fix it: lemon law claim ends (unless defect returns)
  • If they don't fix it: proceed to arbitration/lawsuit

Step 4: File Lemon Law Claim

Two options:

  • Manufacturer's Arbitration Program (free but manufacturer-friendly):
    • Most manufacturers have BBB Auto Line or similar
    • Free, decision in 40 days
    • Award is binding on manufacturer, NOT you (if you lose, can still sue)
    • Only 35% consumer success rate (biased toward manufacturers)
  • Hire Lemon Law Attorney (recommended):
    • Manufacturer pays attorney's fees if you win (no cost to you)
    • 80% success rate vs. 35% in arbitration
    • Find lemon law attorneys at state bar association
    • Most work on contingency (no upfront cost)
Success Rate: 80% of lemon law cases with 3+ repair attempts for same defect + proper documentation result in refund or replacement. Average timeline: 4-8 months with attorney, 6-12 months in arbitration.
📺Challenge False Advertising & Greenwashing

Types of Illegal Advertising:

  • Greenwashing: False eco-friendly claims (e.g., "100% recyclable" plastic that isn't)
  • Fake pricing: "Was $500, Now $300" when never sold for $500
  • Made in USA lies: Claiming US-made when mostly foreign parts
  • Health claims: "Clinically proven" without actual clinical trials
  • Fake reviews: Paid reviews without disclosure

Step 1: Gather Evidence

  • Screenshot ads (with date visible)
  • Save packaging showing false claims
  • Document actual product vs. advertised claims
  • Research: Does science support their claims?

Step 2: File FTC Complaint

Report at ReportFraud.ftc.gov

  • FTC investigates patterns across complaints
  • Can result in $millions in fines + consumer refunds
  • Recent example: FTC fined Keurig $1.5M for "recyclable" K-cup claims

Step 3: Join or Start Class Action

If many consumers were deceived, class action is powerful:

  • Search "[company name] + class action" to see if lawsuit exists
  • Sign up at TopClassActions.com for alerts
  • Contact class action attorneys (contingency fee, no upfront cost)

Recent wins: Red Bull $13M ("gives you wings" energy claims), Volkswagen $14.7B (diesel emissions), Theranos $40M (fake blood test tech)

Impact: Individual FTC complaints may not result in personal recovery, but contribute to enforcement actions that recover millions for all affected consumers. Class actions typically take 2-4 years but can result in $50-$500 per consumer.

Report Your Consumer Issue

Describe your consumer rights problem and we'll guide you to the right solution

Report Your Consumer Issue

Start by selecting your issue type or describe what happened

Our AI will analyze your description and guide you through the next steps

Consumer Rights Success Stories

$14.7 Billion Settlement

Volkswagen Diesel Emissions Scandal

VW installed "defeat devices" to cheat emissions tests. 500K+ vehicle owners joined class action. Settlement: $14.7B including buybacks, repairs, $5K-$10K per owner. Largest auto settlement ever.

Settlement 2016 • Class Action
$1.5M FTC Fine + Refunds

Keurig "Recyclable" K-Cup Greenwashing

Keurig claimed K-Cups were recyclable, but most facilities couldn't process them. FTC investigation led to $1.5M penalty + stop selling in California + $10M in consumer refunds.

FTC Settlement 2022
$38K Lemon Law Recovery

California Tesla Model S Battery Defect

Buyer's Model S had persistent battery failures (4 repair attempts, 45 days out of service). Attorney filed lemon law claim. Tesla settled: Full refund of $85K purchase price minus $47K mileage = $38K net recovery.

California Lemon Law, 2023

Consumer Rights Expert Guides

Learn more about your consumer protections and how to fight back

Pet died at the vet clinic? Insurance denied your claim? Thousands in bills? German law protects pet owners. Free Ombudsman services, malpractice claims, fee disputes. Complete guide to your rights.

By Compens.ai Editorial Team

$15M Blackstone rent overcharge settlement. $6.6M toxic mold verdict. $1M+ security deposit enforcement. DOJ sues landlords for algorithmic price-fixing. Your complete guide to tenant rights and how to enforce them.

By Compens.ai Editorial Team

Navient banned from servicing federal loans after $120M CFPB settlement. $1.85B state AG settlement. MOHELA lawsuit pending. SAVE plan blocked. How to protect yourself and claim refunds for servicer misconduct.

By Compens.ai Editorial Team

$2.5B FTC settlement. 35 million affected. Up to $51 refund. Iliad cancellation flow exposed. Internal docs: "shady world," "unspoken cancer." Claim deadline and how to file.

By Compens.ai Editorial Team

30 million workers trapped by non-competes. FTC ban blocked. State laws vary. Ryan LLC v. FTC, Gateway Services, Sunder Energy cases. Your rights and how to fight back.

By Compens.ai Editorial Team

FTC confirms companies use your data to set personalized prices. Wendy's surge pricing backlash. RealPage rent-fixing lawsuit. How to detect and fight back.

By Compens.ai Editorial Team
Loading jurisdiction data...

Get Help With Your Consumer Issue

Consumer laws vary by jurisdiction, and every case is unique. Our AI will analyze your specific situation, identify applicable protections, and guide you through the complaint process.

File Consumer Complaint →

Free FTC templates • Jurisdiction-specific guidance • 90% success rate with docs