[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR433.1]

[Page 429-430]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 433_PRESERVATION OF CONSUMERS' CLAIMS AND DEFENSES--Table of 
Contents
 
Sec. 433.1  Definitions.




Sec.
433.1 Definitions.
433.2 Preservation of consumers' claims and defenses, unfair or 
          deceptive acts or practices.
433.3 Exemption of sellers taking or receiving open end consumer credit 
          contracts before November 1, 1977 from requirements of Sec. 
          433.2(a).

    Authority: 38 Stat. 717, as amended; (15 U.S.C. 41, et seq.)


    (a) Person. An individual, corporation, or any other business 
organization.
    (b) Consumer. A natural person who seeks or acquires goods or 
services for personal, family, or household use.
    (c) Creditor. A person who, in the ordinary course of business, 
lends purchase money or finances the sale of goods or services to 
consumers on a deferred payment basis; Provided, such person is not 
acting, for the purposes of a particular transaction, in the capacity of 
a credit card issuer.
    (d) Purchase money loan. A cash advance which is received by a 
consumer in return for a ``Finance Charge'' within the meaning of the 
Truth in Lending Act and Regulation Z, which is applied, in whole or 
substantial part, to a purchase of goods or services from a seller who 
(1) refers consumers to the creditor or (2) is affiliated with the 
creditor by common control, contract, or business arrangement.
    (e) Financing a sale. Extending credit to a consumer in connection 
with a ``Credit Sale'' within the meaning of the Truth in Lending Act 
and Regulation Z.
    (f) Contract. Any oral or written agreement, formal or informal, 
between a creditor and a seller, which contemplates or provides for 
cooperative or concerted activity in connection with the sale of goods 
or services to consumers or the financing thereof.
    (g) Business arrangement. Any understanding, procedure, course of 
dealing, or arrangement, formal or informal, between a creditor and a 
seller, in connection with the sale of goods or services to consumers or 
the financing thereof.
    (h) Credit card issuer. A person who extends to cardholders the 
right to use a credit card in connection with purchases of goods or 
services.
    (i) Consumer credit contract. Any instrument which evidences or 
embodies a debt arising from a ``Purchase Money Loan'' transaction or a 
``financed sale'' as defined in paragraphs (d) and (e) of this section.

[[Page 430]]

    (j) Seller. A person who, in the ordinary course of business, sells 
or leases goods or services to consumers.

[40 FR 53506, Nov. 18, 1975]