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The Top 10 "Consumer Myths"

1. You have a three-day right to cancel any purchases.

FACT: The three-day right to cancel exists for only a limited number of consumer transactions. For the most part, the federal protection applies to credit or cash transactions of $25 or more initiated through face-to-face contact (like door-to-door sales) away from the seller's regular place of business. The three-day right to cancel provision does not cover vehicle purchases.

2. A store has to give you a refund if you request one.

FACT: Most states do not have laws specifically regulating refund or return policies. Businesses may set their own return policy. They can offer consumers cash, credit slips, exchanges or no adjustment at all. Many stores also set time limits during which they accept returns.

3. When you receive an "award notification," you are a guaranteed winner.

FACT: One of the most common types of fraud involves phony prize offers. Although it is tempting to think you could be a winner, proceed very cautiously. No matter how they're packaged, these offers almost always cost you money. It's not a prize if you must make a purchase, provide a donation or send an advance payment for taxes, handling fees or processing charges.

4. There is a lemon law that protects you on all big-ticket items you purchase, including used cars not under warranty.

FACT: Almost all states have lemon laws that cover new car purchases. But there is no universal "lemon law" that applies to all big-ticket items. You should investigate the history of the used car or product and have it checked out by a mechanic or someone knowledgeable of the product before purchasing. Some states have lemon laws that pertain to some used cars.

5. When you are solicited by a charity, almost all of the money you contribute must go to the intended charitable purpose.

FACT: Charitable organizations are not obligated to spend a certain percentage on their charitable purpose. Charities that hire professional fund-raisers will have higher overhead costs to meet, so may spend less on the actual cause. Consumers should ask if the person soliciting is a paid solicitor or a volunteer for the charity and what percentage of the donation will actually go to the charity.

6. Giving out your credit card number for identification or other similar purposes is "okay" as long as you don't authorize a charge on your account.

FACT: Allowing your credit cards to be used for identification purpose can sometimes be a costly mistake. Con artists with access to your credit card number and expiration date may make unauthorized charges against your card. Using your credit card to place catalog orders, make hotel reservations or make other types of purchases from familiar, established businesses is usually fine; credit card charge back procedures can even help protect you if you have difficulty receiving the product or service.

7. You have a better chance of winning a publisher's sweepstakes when you purchase magazines.

FACT: It is illegal for sweepstakes promotions to require any type of purchase or payment. Entrants who do not purchase magazines must be given the same chance of winning publishers' sweepstakes as those who do make purchases.

8. People cannot take money directly from your checking account without your written authorization.

FACT: Merely giving someone your checking account number may result in their making withdrawals from your account. People can sometimes issue a "demand draft" to your bank, claiming you authorized the withdrawal, and the bank may pay it even though it lacks your signature. You may not know this has happened until you receive your next statement.

9. Only those to whom you've applied for credit or given permission can look at your credit report.

FACT: Potential employers, landlords, insurers and others may also look at your credit report, and many actually do.

10. Advertisements you see or hear on radio, TV, in newspapers and magazines are accurate or they would not be allowed in the mainstream media.

FACT: There is no government requirement that advertisements be submitted to any public agency for advance review. Also, the media generally doesn't investigate the truth of advertisements and usually is not legally required to do so.

WHAT IS CONSUMER FRAUD?

Consumer fraud, as defined by Arizona law, is any deception, false statement, false pretense, false promise or misrepresentation made by a seller or advertiser of merchandise. In addition, concealment, suppression or failure to disclose a material fact may be consumer fraud if it is done with the intent that others rely on such concealment, suppression or nondisclosure. Merchandise is broadly defined to include any objects, wares, goods, commodities, real estate or intangible items, such as services.

The following is a brief overview of the Consumer Fraud Act. The Act is found at A.R.S.ยง 44-1521 through 44-1534. The Attorney General's Office offers this information as a public service but is prohibited by law from giving you legal advice.

Our office has more than 250 informational pamphlets on a variety of consumer issues, including auto repair, health club contracts, telemarketing and many others.

Who can bring a Consumer Fraud Action?

The Arizona Attorney General has the authority to bring actions alleging violations of the Consumer Fraud Act. A private citizen can also bring an action for a violation of the Consumer Fraud Act within one year from the date the claim arises.

Reporting Consumer Fraud

If you believe you have been the victim of consumer fraud, you should first contact the company in writing and specifically request the relief that you feel is appropriate. You should also file a complaint with the Attorney General's Office, using the printable complaint form. Please fill out the form completely, enclose copies of any supporting documents and mail to:

Contact
OFFICE OF THE ATTORNEY GENERAL
Consumer Information and Complaints

1275 W. Washington
Phoenix, Arizona 85007-2926
602.542.5763 or
800.352.8431
(outside the Phoenix and
Tucson metro areas)
OFFICE OF THE ATTORNEY GENERAL Consumer Information and Complaints
400 W. Congress, South Building, Suite 315
Tucson, Arizona 85701-1367
520.628-6504

Click here to file a Consumer Complaintspacer

All complaints are reviewed by the Attorney General's staff and many complaints result in enforcement actions against violators of the Consumer Fraud Act. If you file a complaint with the Attorney General's Office, you will be advised by the office, in writing, of the status of your complaint. Please note that filing a complaint does not guarantee that our office will be able to take action against all companies. Even if the Attorney General is unable to take any action your complaint provides the office with valuable information concerning consumer problems in the marketplace and the identity of those merchants who might be engaging in fraudulent activity.

Arizona law prohibits the State form revealing information concerning complaints against companies until and unless the matter reaches the courts.

Remedies Available Under the Act

In an enforcement action brought by the State, the State may be awarded up to $10,000 in civil penalties for each violation of the Act in addition to restitution to the victims and orders preventing the violator from engaging in similar conduct in the future. A (consumer) may also hire a private attorney to bring a civil action under the Consumer Fraud Act to attempt to recover restitution and attorneys' fees.

 

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