What is consumer fraud?

Consumer fraud refers to actions involving wrongful or criminal deception designed to yield financial or personal gain. This could manifest in various forms such as deceptive marketing practices, identity theft, or selling counterfeit goods. In these scenarios, the perpetrator intentionally misleading consumers can lead to significant financial loss or harm to individuals.

Understanding this definition is crucial as it differentiates legitimate concerns or issues consumers may have with products, which do not typically involve deception (as seen in legitimate complaints about products), from fraudulent activities that are intended to exploit consumers. Additionally, misunderstandings about product benefits and improper placement of products in stores relate more to consumer misunderstanding or business practices rather than active deception aimed at exploiting consumers for gain. Thus, the essence of consumer fraud is rooted in deceptive practices aimed directly at benefiting the fraudster at the expense of the consumer.