Federal Trade Commission/Regulation
| Author | Jeffrey Wilson |
| Pages | 329-332 |
Page 329
The Federal Trade Commission (FTC) works to ensure that the nation's markets are efficient and free of practices which might harm consumers. To ensure the smooth operation of our free market system, the FTC enforces federal consumer protection laws that prevent fraud, deception, and unfair business practices. The Commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that restrict competition and harm consumers.
The FTC was created in 1914 to prevent unfair methods of competition in commerce. In 1938, Congress passed the Wheeler-Lea Amendment, which included a broad prohibition against "unfair and deceptive acts or practices." After that, the FTC was directed to administer a wide variety of other consumer protection laws, including the Telemarketing Sales Rule, the Pay-Per-Call Rule and the Equal Credit Opportunity Act. In 1975, Congress passed the Magnuson-Moss Act which gave the FTC the authority to adopt trade regulation rules which define unfair or deceptive acts in particular industries. Trade regulation rules have the force of law.
Today, the FTC is an independent agency which reports directly to Congress. The commission is headed by five commissioners, nominated by the president and confirmed by the Senate, each serving a seven-year term. The president chooses one commissioner to act as chairman. No more than three commissioners can be of the same political party. The commission is further divided into bureaus and divisions, which are responsible for various aspects of FTC operations.
Bureau of Consumer Protection's mandate is to protect consumers against unfair, deceptive, or fraudulent practices. The bureau enforces a variety of consumer protection laws enacted by Congress, as well as trade regulation rules issued by the commission. Its actions include individual company and industry-wide investigations, administrative and federal court litigation, rulemaking proceedings, and consumer and business education. In addition, the Bureau contributes to the commission's on-going efforts to inform Congress and other government entities of the impact that proposed actions could have
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on consumers. The Bureau of Consumer Protection is divided into six divisions and programs, each with its own areas of expertise.
The Division of Advertising Practices is the nation's enforcer of federal truth-in-advertising laws. Its law enforcement activities focus on claims for foods, drugs, dietary supplements, and other products promising health benefits, health fraud on the Internet, weight-loss advertising and marketing directed to children, performance claims for computers, ISPs and other high-tech products and services, tobacco and alcohol advertising, children's privacy online, claims about product performance made in national or regional newspapers and magazines; in radio and TV commercials, including infomercials, through direct mail to consumers, or on the Internet.
The Division of Enforcement conducts a wide variety of law enforcement activities to protect consumers, including ensuring compliance with administrative and federal court orders entered in consumer protection cases, conducting investigations...
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