Federal Trade Commission Act of 1914

Federal Trade Commission Act of 1914

Federal Trade Commission Act of 1914 is a landmark legislation in the United States that established the Federal Trade Commission (FTC) to promote consumer protection and prevent anti-competitive business practices.

The act prohibits unfair methods of competition and unfair or deceptive acts or practices in commerce. It also gives the FTC the authority to conduct investigations, issue cease and desist orders, and impose civil penalties on violators.

One of the key provisions of the act is Section 5, which prohibits unfair or deceptive acts or practices. This section has been used by the FTC to bring enforcement actions against companies engaged in false advertising, deceptive marketing, and other deceptive practices.

The Federal Trade Commission Act of 1914 has been instrumental in shaping competition policy and protecting consumers in the United States. It has played a crucial role in preventing monopolies, promoting fair competition, and ensuring that consumers have access to accurate and truthful information about products and services.

Examples of violations under the Federal Trade Commission Act of 1914:

• False advertising
• Bait-and-switch tactics
• Price-fixing
• Deceptive marketing practices

Companies found to be in violation of the act may face fines, injunctions, and other penalties imposed by the FTC.

References: Federal Trade Commission Act of 1914 – Wikipedia