Overview of the 1914 Federal Trade Commission Act
The 1914 Federal Trade Commission Act was passed to help protect consumers from unfair and deceptive business practices. The Act established the Federal Trade Commission (FTC) with the goal of ensuring that companies treat consumers fairly and don’t take advantage of them.
What Does the Act Do?
The Act gives the FTC the authority to investigate companies’ practices and take legal action against companies that violate the Act or any other laws it enforces. It also allows the FTC to issue cease-and-desist orders to companies that violate the law and to issue injunctions to stop unfair or deceptive business practices. The Act also established certain consumer protections, including a prohibition on false or misleading advertising and a requirement that companies disclose certain information about their products or services.
Examples of Unfair or Deceptive Business Practices
The Act prohibits a variety of unfair or deceptive business practices, including:
- Making false or unsubstantiated claims about a product or service
- Misrepresenting the quality, price, or availability of a product or service
- Making false or misleading statements about a company’s products or services
- Failing to disclose information about a product or service
- Engaging in “bait and switch” tactics, such as advertising a product at a low price and then attempting to sell a different, more expensive product
Conclusion
The 1914 Federal Trade Commission Act is an important piece of legislation that protects consumers from unfair and deceptive business practices. It gives the FTC the authority to investigate companies’ practices, issue cease-and-desist orders, and take legal action against companies that violate the Act. It also established certain consumer protections to ensure that companies treat consumers fairly and don’t take advantage of them. For more information, please visit the following links: