Intro to Mortgage Origination Examinations - June 2022

Elements of Deceptions (FTC Act§5) • Unfair or deceptive acts or practices are unlawful • An act or practice is unfair if it: 1. “causes or is likely to cause substantial injury to consumers” 2. “cannot be reasonably avoided by consumers,” and 3. “Is not outweighed by countervailing benefits to consumers or competition.”

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Elements of Deceptions (FTC Act §5) • An act or practice is deceptive if:

1. “likely to mislead consumers” 2. “consumer interpretation is reasonable” 3. “material to consumers”

*Intent is not an element of deception

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