Who does the Federal Trade Commission regulate?
The Federal Trade Commission enforces a variety of antitrust and consumer protection laws affecting virtually every area of commerce, with some exceptions concerning banks, insurance companies, non-profits, transportation and communications common carriers, air carriers, and some other entities.
What are the main provisions of the Federal Trade Commission Act?
Under this Act, as amended, the Commission is empowered, among other things, to (a) prevent unfair methods of competition and unfair or deceptive acts or practices in or affecting commerce; (b) seek monetary redress and other relief for conduct injurious to consumers; (c) prescribe rules defining with specificity acts …
What does the FTC Act prohibit?
Section 5(a) of the Federal Trade Commission Act (FTC Act) (15 USC §45) prohibits “unfair or deceptive acts or practices in or affecting commerce.” This prohibition applies to all persons engaged in commerce, including banks. … The legal standards for unfairness and deception are independent of each other.
What was the purpose of the Federal Trade Commission Act of 1914?
When the FTC was created in 1914, its purpose was to prevent unfair methods of competition in commerce as part of the battle to “bust the trusts.” Over the years, Congress passed additional laws giving the agency greater authority to police anticompetitive practices.
What is an example of the Federal Trade Commission?
The Federal Trade Commission is divided into three bureaus that have different regulation and protection responsibilities. … For example, the FTC might investigate whether a retail company has special agreements with a supplier that violates anti-trust law and gives them an unfair advantage over their competitors.
What is Section 5 of the Federal Trade Commission?
Section 5(a) of the FTC Act provides that “unfair or deceptive acts or practices in or affecting commerce . . . are . . . declared unlawful.” 15 U.S.C.
How did the Federal Trade Act impact business practices?
In 1914, Congress passed the Federal Trade Commission Act, creating an agency to enforce the new statutes and protect consumers from unfair business practices. … While many issues centered on corporation competition and deceptive trade practices, other duties were added to the FTC roster.
What were the aims of the Clayton Antitrust Act?
The Clayton Antitrust Act, passed in 1914, continues to regulate U.S. business practices today. Intended to strengthen earlier antitrust legislation, the act prohibits anticompetitive mergers, predatory and discriminatory pricing, and other forms of unethical corporate behavior.
What did the Federal Trade Commission Act do quizlet?
Authorizes commission to prevent unfair methods of competition and prohibits unfair or deceptive acts or practices in commercial settings.
What are the 4 P’s of deception?
Deceptive Acts or Practices
8 Clear and Conspicuous Disclosures When evaluating the three-part test for deception, the four “Ps” should be considered: prominence, presentation, placement, and proximity.
What are examples of unfair trade practices?
Unfair trade practices include false representation of a good or service, targeting vulnerable populations, false advertising, tied selling, false free prize or gift offers, false or deceptive pricing, and non-compliance with manufacturing standards.
What makes a practice unfair?
Unfair Acts or Practices – The Dodd-Frank Act standard for unfairness is that an act or practice is unfair when: It causes or is likely to cause substantial injury to consumers; … The injury is not outweighed by countervailing benefits to consumers or to competition.
What is the Federal Trade Commission responsible for?
What was the Federal Trade Commission created for?
September 26, 1914