What is a primary characteristic of consumer fraud?

The primary characteristic of consumer fraud is intentional deception against merchants. This involves deliberately misleading merchants or service providers in order to receive products, services, or other benefits without rightful payment or with the intent to exploit. Consumer fraud can manifest in various forms, such as returning stolen merchandise for refunds, using stolen credit card information, or providing false information to obtain loans or benefits.

In this context, the emphasis is on the deceptive intent behind the actions of the consumer, highlighting that the hallmark of fraud is this conscious effort to deceive for personal gain. Other options, such as routine purchase returns, consumer loyalty programs, and discount schemes for frequent buyers, do not inherently involve deceitful behavior and are therefore not characteristics of consumer fraud.