Consumer Liability


DEFINITION of 'Consumer Liability'

The accountability put on consumers to not act in a negligent way. Consumer liability put on consumers is usually written in the fine print or written contract when transacting with companies. It is a method of companies protecting themselves from the potential negligence of consumers.

BREAKING DOWN 'Consumer Liability'

An example would be the Electronic Fund Transfer Act. It states that consumers may be exposed to limited liability for unauthorized e-fund transfers given certain circumstances. Consumers must also report lost or stolen credit cards within two business days after becoming aware or else the bank is not obliged to refund any losses. Typically it is up to the consumer to inform themselves of his or her potential liability.

  1. Cardholder Agreement

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  2. Electronic Funds Transfer Act

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  3. Fine Print

    Contract terms and conditions, disclosures or other important ...
  4. Substitute

    A product or service that a consumer sees as comparable. If prices ...
  5. Fast Fashion

    Definition of "fast fashion."
  6. Duty Free

    Goods that international travelers can purchase without paying ...
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