Government Regulation Agencies for Consumer Protection

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: Protecting Consumer Privacy Online

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
Your next lesson will play in 10 seconds
  • 0:54 Consumer Financial…
  • 1:30 Consumer Product…
  • 2:05 Federal Trade Commission (FTC)
  • 2:41 Food and Drug…
  • 3:05 National Highway…
  • 4:07 Security Exchange…
Save Save Save

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Speed Speed

Recommended Lessons and Courses for You

Lesson Transcript
Instructor: Jennifer Lombardo
You will learn about the government regulatory agencies that protect consumers. We'll discuss what the acronyms CFPB, CPSC, FTC, FDA, NHTSA, and SEC stand for and their organizations' responsibilities.

Protection of Consumers

Did you know that there are six government regulatory agencies that exist just to protect you from dangerous products? This hexagon of protection is responsible for informing and protecting consumers and monitoring businesses for poorly designed products. In this lesson, you will learn about the government agencies that protect consumers.

Consumer protection regulatory agencies fight to ensure that individuals are treated fairly, receive the necessary information to make informed decisions, are protected against product hazards, and have the ability to use legal recourse if needed. Certain types of products attract more regulation due to their higher risk of consumer injury or death, such as food, drugs, children's products, and automobiles.

Let's take a look at exactly how the different regulatory agencies accomplish this task of protecting consumers.

Consumer Financial Protection Bureau (CFPB)

This regulatory agency's purpose is to protect consumers from deceptive financial products. The Consumer Financial Protection Bureau (CFPB) ensures consumers have the information needed to select the best financial services, such as credit cards, student loans, and mortgages. The CFPB works with companies to eliminate fine print add-ons that can confuse and hurt consumer finances. In addition, the CFPB will help consumers who are having difficulty paying their mortgage by putting them in touch with a counselor to help provide financial planning and assistance.

Consumer Product Safety Commission (CPSC)

The Consumer Product Safety Commission is responsible for consumer product safety. In 1972, Congress passed the Consumer Product Safety Act, which gave the CPSC powers to protect individuals from unsafe consumer products. They accomplish this task through evaluating the safety of consumer products, developing standards, and conducting research as it pertains to safety. For example, the CPSC recently issued a recall on folding lounge chairs because consumers have reported falls when using them.

Federal Trade Commission (FTC)

The Federal Trade Commission (FTC) was initially created in 1914 as an agency that wielded a weapon against antitrust. Eventually, the commission's powers were enlarged to also protect consumers against false advertising and fraud. There are many specific areas that the FTC has targeted in respect to the protection of the public. For example, the most recent areas of concern have been towards businesses advertising to children. The FTC was able to fine a large technology company $19 million for unfairly billing parents for their children's authorized app purchases.

Food and Drug Administration (FDA)

The Food and Drug Administration is responsible for the safeguarding of public health by monitoring drugs, medical devices, and cosmetics. The administration also helps improve consumers' health through advancing drug innovation. Lastly, they also protect our food supply. For example, the FDA recently published a list of online pharmacy websites that were selling fake drugs to consumers.

National Highway Traffic Safety Administration (NHTSA)

The National Highway Traffic Safety Administration (NHTSA) was created by the U.S. Department of Transportation in 1970 to protect consumers by reducing death, injuries, and monetary losses through vehicle accidents. It also plays a huge role in the investigation of defects in motor vehicle design, equipment, and laws. Lastly, the NHTSA provides training to communities to educate drivers about driving drunk.

To unlock this lesson you must be a Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use

Become a member and start learning now.
Become a Member  Back
What teachers are saying about
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account