Legal Definitions - tri-chad

tri-chad

The term "tri-chad" is derived from the acronym CHAD, which stands for Consumer Harm And Deception.

In a legal context, tri-chad refers to a situation or claim where there are three distinct and identifiable instances or categories of consumer harm and deception. This concept is used to describe cases where a single entity or action has led to multiple, separate violations concerning how consumers were misled or damaged, highlighting the multi-faceted nature of the deceptive practices and their impact.

• Example 1: Misleading Product Claims in Advertising

  A company launches a new energy drink, claiming it "boosts IQ by 20 points" (deception 1), "burns fat while you sleep" (deception 2), and is "endorsed by leading medical professionals" without any actual endorsements (deception 3). Consumers who purchase the drink based on these false advertisements suffer financial harm and do not receive the promised benefits.

  How it illustrates "tri-chad": This scenario involves three separate and distinct deceptive claims made in the product's advertising. Each claim contributes to the overall consumer harm and deception, making it a "tri-chad" situation due to the multiple layers of misleading information.

• Example 2: Real Estate Transaction Fraud

  A property developer sells apartments in a new building, falsely stating that the building is "earthquake-proof" (deception 1), concealing known structural defects (deception 2), and misrepresenting the property's proximity to a planned public park that was never approved (deception 3). Buyers discover these issues after purchase, leading to significant financial losses and safety concerns.

  How it illustrates "tri-chad": Here, the buyers experienced three distinct acts of deception and resulting harm: false safety claims, concealment of defects, and misrepresentation of amenities. This constitutes a "tri-chad" situation because of the three separate deceptive practices involved in the transaction.

• Example 3: Software Subscription Service

  A software company offers a "lifetime subscription" to its photo editing application but then unilaterally changes its terms to require annual payments after a year (deception 1). The company also advertises "unlimited cloud storage" which is actually capped at a very low limit (deception 2), and it automatically renews subscriptions without sending clear notifications to users (deception 3). Users are then charged unexpectedly for a service they believed was perpetual or had limited storage.

  How it illustrates "tri-chad": This case involves three distinct deceptive practices: misleading "lifetime" claims, false advertising of "unlimited" storage, and undisclosed automatic renewals. Each element contributes to consumer harm and deception, making it a "tri-chad" scenario.