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Title I of The Consumer Credit Protection Act of 1968 is called The Truth in Lending Act which was the first general federal consumer protection legislation. It requires in consumer credit transactions that all terms be fully explained. Advertisements covered by this act include written statements such as magazine or newspaper advertisements, price tags, window displays, radio commercials and television commercials. Statements made by a salesperson or clerk trying to make a sale are not an advertisement subject to this law.
There are three basis rules set up by The Truth in Lending Act. The first is that lenders cannot advertise a good deal that is in fact rarely available to anyone except preferred borrowers. The second rule set down by this act is that all advertisements must include all the terms or none of them. The third rule of The Truth in Lending Act states that if the services or goods are to be paid for in more than four installments, the agreement must state in clear and concise print that "the cost of credit is included in the price quoted for the goods or services."
Although this law controls only the advertiser and not the advertising medium, it will not allow individuals to file suit against advertisers who violate its terms. The act does all the government to bring a criminal prosecution against advertisers who knowingly and willfully violate it. There are several Federal agencies who have the authority to enforce The Truth in Lending Act. For example, the FTC can investigate false advertising and order a company to cease their advertisement.