how the ftc works crash course

by Rebekah Pouros 5 min read

What does the FTC do in simple terms?

About the FTC The FTC's mission is to protect consumers and competition by preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education without unduly burdening legitimate business activity.

What are the 2 main things that the FTC does?

The basic statute enforced by the FTC, Section 5(a) of the FTC Act, empowers the agency to investigate and prevent unfair methods of competition, and unfair or deceptive acts or practices affecting commerce. This creates the Agency's two primary missions: protecting competition and protecting consumers.

Does the FTC actually do anything?

What does the FTC do? The FTC works to protect consumers and businesses alike by preventing unfair, deceptive and fraudulent practices in the market.

What are the 4 P's of the FTC?

Revisiting Norling, he says: “For all ads regardless of the type of media, when doing disclosures or disclaimers, remember the four 'Ps': Proximity to triggering claim; presentation in a manner to be easily understood by the consumer; prominence — try to use same font and colors as triggering claim; and placement where ...

How does the FTC enforce laws?

The FTC cooperates on investigations and enforcement actions with competition, consumer protection, and privacy agencies in other countries to halt deceptive and anticompetitive business practices that affect U.S. consumers.

What is an example of FTC?

FTC activities include investigating fraud or false advertising, congressional inquiries, and pre-merger notification. The FTC also handles scams and unfair or predatory business practices.

Is the Federal Trade Commission real?

The FTC is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy.

How do robocalls spoof phone numbers?

Customers dial the number given to them by the company, their PIN, the destination number and the number they wish to appear as the caller ID. The call is bridged or transferred and arrives with the spoofed number chosen by the caller—thus tricking the called party.

How does the FTC carry out its mission?

The FTC collects complaints about companies, business practices, and identity theft under the FTC Act and other laws we enforce or administer. Consumers may file complaints with the FTC Complaint Assistant.

What is Section 5 of the FTC Act?

Section 5(a) of the FTC Act, 15 U.S.C. Sec. 45(a), prohibits, inter alia, “unfair methods of competition.” Unfair methods of competition include any conduct that would violate the Sherman Antitrust Act or the Clayton Act.

What are the three tests or elements used by the FTC to determine whether a particular act is an unfair trade practice?

Under the FTC Policy Statement on Unfairness, an act or practice is unfair when it (1) causes or is likely to cause substantial injury (usually monetary) to consumers, (2) cannot be reasonably avoided by consumers, and (3) is not outweighed by countervailing benefits to consumers or to competition.

What role does the FTC play in disclosures?

The FTC has enforced and will continue enforcing its consumer protection laws online to ensure that products and services are described truthfully in online ads and that consumers get what they pay for. These activities benefit consumers as well as sellers, who expect and deserve a fair market- place.