What does consumer fraud involve?

Consumer fraud primarily involves deceptive practices undertaken by consumers to obtain goods, services, or benefits at the expense of merchants or businesses. This can include actions such as using false information to obtain a refund or exchange, making purchases with stolen credit cards, or employing other dishonest means to exploit merchant policies.

Understanding this context, the option identifying fraudulent acts by consumers against merchants accurately describes the essence of consumer fraud. It focuses on how consumers initiate dishonest actions that directly harm businesses, rather than engaging in legitimate transactions or interactions.

The other options differ significantly in context; for instance, legitimate returns and exchanges are standard consumer rights practices, while negotiating discounts on bulk purchases is a common business negotiation strategy. Corporate theft of trade secrets, although also involving unlawful activities, pertains more to corporate fraud and security violations than to consumer interactions with merchants.