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The FTC is a US government agency that regulates interstate commerce and protects consumers from false advertising and unfair business practices. It reviews major corporate mergers, regulates advertising, and cracks down on price-fixing schemes and monopolies. The agency also protects consumers, oversees enforcement of the Fair Credit Reporting Act, and has an educational mission to empower consumers. Small businesses are also protected by the FTC. Complaints about violations should be filed with the agency.
The Federal Trade Commission (FTC) is a US government agency that focuses on promoting a competitive marketplace and protecting consumers from false advertising and unfair business practices. The agency sets trade rules that affected industries must abide by and can file lawsuits in federal court against violators who violate trade rules or federal law. The primary focus of the FTC is the regulation of interstate commerce. The agency, founded in 1915, is led by five commissioners and is headquartered in Washington, D.C. Although the agency cannot directly punish violators, it can issue compliance orders and eventually sue businesses that continue to violate trade rules .
Numerous measures are taken to ensure a fair and free market. The FTC reviews potential major corporate mergers, for example, to make sure the merger doesn’t form a monopoly or dominate the market for that particular product or service. It also regulates advertising and heavily prosecutes companies that engage in false advertising, as this can be detrimental to the functioning of an unhindered market. Additionally, the FTC monitors some industries that are prone to reoffending, such as telemarketing and the funeral industry. As part of its anti-trust mission, the agency cracks down on price-fixing schemes, monopolies and other questionable business practices.
In addition to promoting a healthy marketplace, the FTC also protects consumers. A section of staff handles consumer complaints about misadvertising and handles issues with the franchise and business opportunity. The agency oversees enforcement of the Fair Credit Reporting Act and also regulates electronic commerce. Additionally, the FTC has an educational mission to empower consumers so they can make informed purchasing choices while protecting their identity and safety. It also oversees issues such as product labeling, including claims about the content and efficacy of products other than drugs, which are regulated by the Food and Drug Administration (FDA).
Many small businesses are also tangentially protected by the FTC. For example, it has business rules for franchised businesses that force the parent company to fully disclose all information related to the business. The agency’s activities in the e-commerce sector have also been beneficial for small businesses. Consumers who feel they are being subjected to false advertising or have otherwise been violated should file a complaint with the FTC, as should companies who suspect other companies of potentially harmful business practices.
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