Fraud And Abuse Act Flashcards, test questions and answers
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What is Fraud And Abuse Act?
The Fraud and Abuse Act is a federal law that was passed in 1986 to protect consumers from unethical and fraudulent business practices. The act prohibits deceptive, unfair, and fraudulent acts in the sale of goods or services, as well as false or misleading representations of material facts in advertising. The purpose of this act is to ensure that consumers are protected from deceptive, coercive and fraudulant acts and practices.The main provisions of the Fraud and Abuse Act are as follows: businesses must provide accurate information regarding their products or services; they must not use false or misleading claims when advertising; they must not engage in unfair or deceptive trade practices such as bait-and-switch tactics; they must disclose all material facts related to their products or services; they must not make false promises regarding product performance; they must not use contracts with terms that are too one-sided; and they must abide by all laws governing consumer protection. Violations of the Fraud & Abuse Act can result in both civil penalties (such as fines) for the business involved and criminal prosecution for any individuals responsible for the violation. The Fraud & Abuse Act has provided an important layer of consumer protection for decades, helping to protect consumers from deceptive marketing tactics and other unethical behavior by businesses. It has also been used to punish those who commit fraud against consumers, ensuring that perpetrators face justice for their actions. Finally, it serves as a reminder to businesses about their legal obligations when dealing with customers so that people can have confidence when making purchases online or offline.