Consumer Fraud Act

(Reported to Senate from the Committee on Commerce with amendment, S. Rept. 94-252)

Consumer Fraud Act - Defines the terms used in this Act, including "unfair consumer practice," to mean: (1) offering or advertising goods or services for sale to a consumer with knowledge that such goods or services will not be sold as so offered or advertised; (2) making false or misleading statements with respect to goods or services which are offered for sale or sold to a consumer; and (3) using physical force, threat of physical force, tortious threats or harassment or misrepresentation of law in the course of a sale or attempted sale to a consumer of goods or services or in the course of collection of the purchase price.

Provides that whoever, in connection with the sale, attempted sale, or distribution of goods or services to a consumer, or in connection with the collection or attempted collection of the purchase price or portion thereof of goods or services by the use of any means or instrumentality of transportation or communication in or affecting interstate or foreign commerce including the use of the mails, knowingly engages in an unfair consumer practice, as defined in this Act, shall be fined, in the case of a first offense, no more than $1,000 or imprisoned for no more than 1 year, or both, or in the case of a second or subsequent offense, shall be fined no more than $10,000 or imprisoned for no more than 3 years, or both.

States that any contract or agreement in or affecting interstate or foreign commerce which provides for the purchase of goods or services which results from a transaction that involves an unfair consumer practice by a supplier may be voided by the affected consumer. Makes any person who knowingly induces a consumer to enter into a contract or agreement pursuant to or in furtherance of an unfair consumer practice liable to such concumer in an amount equal to three times the damage or loss suffered, together with the costs of any legal action required including a reasonable attorney's fee. Provides that such amount may be recovered in a civil action in an appropriate district court of the United States or in any State court of competent jurisdiction.