Introduction to Mortgage Origination Examinations Training eBook

Internal Use Only

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.”

Internal Use Only

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