What the Consumer Financial Protection Bureau ... - Venable LLP

DECEPTIVE ACTS OR PRACTICESDEFINEDA representation, omission, actorpractice is deceptive when1. The representation, omission,act, or practice misleads or islikely to mislead the consumer,2. The consumer’s interpretationof the representation,omission, act, or practice isreasonable under thecircumstances, and3. The misleading representation,omission, act, or practice ismaterialChecklistActs or practices that may be deceptive include:making misleading cost or price claims; offering toprovide a product or service that is not in factavailable; using bait-and-switch techniques; omittingmaterial limitations or conditions from an offer; orfailing to provide the promised services.Is a representation, omission, act, or practice islikely to mislead:Is the statement prominent enough for theconsumer to notice?Is the information presented in an easy-tounderstandformat that does not contradict otherinformation in the package and at a time when theconsumer’s attention is not distracted elsewhere?Is the placement of the information in a locationwhere consumers can be expected to look orhear?Finally, is the information in close proximity tothe claim it qualifies?