A consumer is anyone who buys or uses a product for personal use and doesn’t resell it. US federal law gives every consumer six basic rights, starting with the Consumer Bill of Rights signed by President Kennedy in 1962. Knowing your rights and responsibilities is the first step to being a smart buyer.
Most people use consumer and customer like they mean the same thing. And honestly, it’s an easy mistake. Both words can point to the same person in everyday conversation. But in marketing and US consumer protection law, they mean something very different.
A customer pays for something. A consumer is the one who actually uses it. A consumer is any person who buys or uses a product or service for personal use and does not resell it.
That difference determines what legal protections apply to you under US federal law. It shapes how businesses target you, how federal agencies like the FTC protect you, and what rights you have when something goes wrong.
Since 1962, when President Kennedy signed the Consumer Bill of Rights, US law has guaranteed every buyer specific protections. In this guide, you’ll learn your 6 consumer rights, your responsibilities as a buyer, and how to take action when a business treats you unfairly.
What Is a Consumer?
A consumer is a person who buys or uses a product or service for personal use. They are the end user. The last person in the chain. They don’t resell what they buy. They use it.
The Cambridge Dictionary defines a consumer as
Think about it this way. You walk into Target and buy cereal for your family. You’re the customer because you paid for it. But your kids eating that cereal at breakfast? They’re the consumers. One person buys. Another person uses. Sometimes it’s the same person. Often it’s not.
In US consumer protection law, this distinction matters. The Federal Trade Commission (FTC) and the Consumer Product Safety Commission (CPSC) write their rules around the end user. The person who actually uses the product, not always the person who paid.
Consumer vs Customer: The Key Difference
A customer is the person who makes the purchasing decision and pays. A consumer is the person who actually uses the product or service.
Here’s a quick example. A mom orders shoes on Amazon for her son. She’s the customer. Her son wearing those shoes to school is the consumer. The same person can be both. When you buy a coffee and drink it yourself, you’re the customer and consumer at the same time.
But businesses and federal agencies treat these roles differently. The FTC focuses its consumer protection laws on the end user, the person exposed to the product or deceptive practices, not just the person who paid.
Consumer vs Customer: What are the Key Differences
| Basis | Consumer | Customer |
|---|---|---|
| Definition | Uses the product or service | Buys the product or service |
| Payment | May or may not pay for the product | Pays for the product or service |
| Resell | Typically acquires the product for use rather than resale | Can buy for personal use or resale |
| Motive | Consumption or personal use | Consumption, gifting, business use, or resale |
| Legal Focus | Consumer protection and product safety rights | Purchase, contract, and transaction rights |
| Example | Child using a toy | Parent buying the toy |
Types of Consumers in the US Market
Not every consumer is the same. The US marketplace has different types based on who buys, why they buy, and how they use goods and services.
1. Personal Consumer
A personal consumer buys products or services for their own use or for someone they know. This is the most common type in everyday life. A person buying groceries, a parent picking up school supplies, a college student ordering food online. All personal consumers.
This is who most consumer protection laws are written for. The FTC and CPSC focus heavily on protecting individual consumers making everyday purchasing decisions.
2. Organizational Consumer
An organizational consumer buys goods and services for business use, not personal use. Think a restaurant buying cooking equipment or a company purchasing software licenses.
They still have rights under US law. But the legal focus shifts more toward contract law and fair business practices rather than individual consumer protections.
3. Prosumer
A prosumer does more than just buy and use a product. They also influence other people’s purchasing decisions. Think of a YouTube reviewer with 500,000 subscribers. They test a product, share their opinion, and directly shape what thousands of people buy next.
Prosumers carry serious weight in the marketplace. One negative review from the right prosumer can hurt a brand badly. That’s why companies offer free products, sponsorships, and early access to prosumers specifically.
4. Final Consumer
The final consumer is whoever ends the journey of a product. Once they use it, the product stops moving through the supply chain. This term appears often in US consumer protection law because the law cares most about the person at the end of the line. The one with no option to pass the product on.
Consumer vs. Prosumer: Key Differences
| Consumer | Prosumer |
| Uses or purchases a product/service. | Uses a product/service and actively shares opinions or creates content about it. |
| Usually has limited influence on other buyers. | Can influence purchasing decisions of others. |
| May or may not share feedback publicly. | Frequently shares reviews, recommendations, or expertise. |
| Influence is generally personal and limited. | Influence can extend to communities, social media audiences, or niche groups. |
| Companies typically market products to them. | Companies may seek their feedback, reviews, or promotional support. |
| Example: A person buying a smartphone for personal use. | Example: A tech reviewer, blogger, YouTuber, industry expert, or active community member reviewing smartphones. |
The Consumer Bill of Rights: All 6 Rights Explained
In 1962, President John F. Kennedy sent a special message to Congress. He outlined four basic protections every American deserved as a buyer. That message became the foundation of what we now call the Consumer Bill of Rights.
It was the first time a US president formally recognized that consumers needed legal protection from unfair business practices, false advertising, and dangerous products.
Over time, two more rights were added. Today, these six consumer rights are enforced by the FTC, the CPSC, and the Consumer Financial Protection Bureau (CFPB). Congress later turned these principles into real law through the Consumer Product Safety Act in 1972.
1. The Right to Safety
You have the right to buy products that won’t hurt you when used correctly. The CPSC sets safety standards, issues product recalls, and holds manufacturers accountable for product defects. If a product causes damage when used as intended, the manufacturer is liable.
To learn how buyers make purchasing decisions, read our guide on consumer behavior.
2. The Right to Be Informed
Businesses must give you accurate, complete information about their products and services. The FTC Act bans misleading advertising and deceptive practices. If a company sells you something under false pretenses, they can be investigated, fined, or sued by the FTC.
3. The Right to Choose
You have the right to shop in a free market with real competition. Businesses can’t pressure you into buying their products. If a market becomes dominated by one seller, a monopoly. Regulators can step in. Competition keeps prices fair and quality high.
4. The Right to Be Heard
If a product fails you or a business treats you unfairly, you have the right to speak up. This includes leaving reviews, filing complaints with federal agencies, and having your concerns considered in public policy. No company can legally silence a truthful complaint.
5. The Right to Redress
When something goes wrong, you have the right to seek justice. That means requesting a refund, making a warranty claim, or filing a consumer complaint with the FTC, CPSC, or your state attorney general. This right was added after Kennedy’s original four to address the need for real-world remedies.
6. The Right to Consumer Education
Every consumer has the right to learn about their rights and how to use them. This means access to information about product safety, fair pricing, and how to file complaints. Federal agencies like the FTC and CFPB publish free consumer education resources.
To better understand how consumers make purchasing decisions and influence demand, read our detailed guide on consumer markets.
Responsibilities of Consumers Under US Law
Rights only work when consumers hold up their end, too. Every right in the Consumer Bill of Rights comes with a matching responsibility.
1. Make Informed Decisions
The free market gives you choices, it only works when consumers do their homework before buying. Comparison shopping is your first responsibility. Check prices, read reviews, and verify claims before spending your money.
When consumers blindly follow one voice, they hand power to monopolies and hurt healthy competition. Research protects you and keeps the market fair for everyone.
2. Read Labels and Instructions
Every product comes with a manual, label, or safety guide. Read it before you use the product. Most product defects and injuries happen not because the product was dangerous. It happened because the consumer ignored the instructions. Using a product the wrong way can void your warranty, cancel your right to a refund, and put you at risk.
3. Use Products Safely
If a manufacturer gives you a safe product with clear information, it’s your job to use it as intended. Don’t use a product for something it wasn’t designed for. Don’t ignore safety warnings on the label. The CPSC sets safety standards, but those standards only work when you follow the usage guidelines.
4. Report Defective Products and Fraud
When something goes wrong, speak up. Filing a consumer complaint isn’t just your right. It’s your responsibility. When you stay silent about a product defect, a scam, or false advertising. Other consumers get hurt too.
Report defective products to the CPSC and Report fraud to the FTC. One can contact your state attorney general for local violations. Your complaint can trigger a federal investigation or a product recall that protects thousands of buyers.
5. Respond to Product Recalls
If the CPSC issues a product recall on something you own, act immediately. Stop using it. Follow the recall instructions. Most recalls offer a free repair, replacement, or refund. Check SaferProducts.gov regularly to stay ahead of recalls.
6. Don’t Be Fooled by False Advertising
Ads are designed to sell, not always to inform. Many exaggerate results, hide fees, or make claims with no proof. Verify what you see in an ad before you buy. Cross-check claims on independent review sites. The FTC bans misleading advertising, but can’t catch everything. Your own critical thinking is the first line of defense.
7. Keep Your Receipts and Purchase Records
To file a complaint, request a refund, or make a warranty claim, you need proof of purchase. Save your receipts, order confirmations, and emails after buying anything. In the US, this documentation is essential if you need to go to small claims court or dispute a charge with your bank. No receipt often means no remedy.
FAQs About Consumer Rights and Responsibilities
Under US federal law, a consumer is any person who buys or uses goods or services for personal use and does not resell them. The FTC and CPSC both use this definition when applying consumer protection laws. It focuses on the end user, not just whoever paid for the product. Businesses buying for commercial resale don’t typically qualify as consumers under this standard.
The six consumer rights are: the right to safety, the right to be informed, the right to choose, the right to be heard, the right to redress, and the right to consumer education. The first four came from President Kennedy’s Consumer Bill of Rights in 1962. The last two were added later. Federal agencies, including the FTC, CPSC, and CFPB, enforce these rights.
A customer is the person who makes the purchase and pays. A consumer is the person who actually uses the product; sometimes it’s the same person, like when you buy and drink your own coffee. But often they’re different, like a parent buying toys that their child uses. US consumer protection laws focus on protecting the consumer, the end user, not just the buyer.
A prosumer is a consumer who also influences what other people buy. Usually through reviews, social media, or content creation. A regular consumer uses a product and moves on. A prosumer shares their experience publicly. And because they have a large following, their opinion can seriously affect a brand’s sales. Companies often target prosumers with free products or partnerships specifically to capture that influence.
You have a few options depending on the problem. For defective or unsafe products, report to the CPSC. For fraud, scams, or deceptive advertising, file a complaint with the FTC at ReportFraud.ftc.gov. For local violations, like a business breaking state consumer protection laws. Contact your state attorney general’s office. Keeping your receipt makes any complaint much stronger.
Yes, and that protection has expanded a lot. The FTC applies the same rules on deceptive practices to online sellers that it does to physical stores. Many states now also have privacy laws that give consumers the right to access, correct, or delete personal data that businesses collect about them. If an online seller uses misleading advertising or ships a defective product, your rights as a consumer still apply, regardless of whether you bought it in a store or on an app.
