Consumer Liability

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Electronic Funds Transfer Act

    A federal law that protects consumers engaged in the transfer ...
  2. Cardholder Agreement

    A printed booklet a credit cardholder receives that contains ...
  3. Fine Print

    Contract terms and conditions, disclosures or other important ...
  4. Fast-Moving Consumer Goods (FMCG) ...

    These are consumer goods products that sell quickly at relatively ...
  5. Customer To Customer (C2C)

    A business model that facilitates an environment where customers ...
  6. Door Crasher

    A low-priced item of limited quantity typically offered on special, ...
Related Articles
  1. Consumer Protection Laws You Need To ...
    Personal Finance

    Consumer Protection Laws You Need To ...

  2. Credit Scams To Watch Out For
    Insurance

    Credit Scams To Watch Out For

  3. Spotting Credit-Repair Scams
    Credit & Loans

    Spotting Credit-Repair Scams

  4. Why are EMV cards more secure than traditional ...
    Savings

    Why are EMV cards more secure than traditional ...

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center