Federal Trade Commission Enforcing Antitrust Laws
The Role of the FTC in Enforcing Antitrust Law
Written by Jason Gordon
Updated at April 6th, 2023
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What entities are charged with carrying out the federal antitrust laws?
The Federal Trade Commission (FTC) is an independent federal agency primarily charged with developing regulations and preventing violations of the federal antitrust laws. The objective of the FTC is to protect consumers by preventing anticompetitive business practices. In pursuit of this objective, the FTC has broad authority to determine what constitutes unfair competition in the market. The FTC issues trade regulations that apply broadly across industries and trade practice rules that guide businesses operating in specific industries. While compliance with FTC practice rules is voluntary, it provides a safe harbor in the event of FTC inquiry into a business's practices.
Next Article: Sanctions Under Antitrust Law Back to: ANTITRUST LAW
How do Courts and the FTC Interpret Antitrust Law?
In the Sherman Act, Congress broadly defined unfair methods of competition to allow administrative agency and federal court interpretation to add specificity. Generally, the FTC makes the determination of what it deems to be unfair. If there is no deception or obvious antitrust violation, the FTC asks three questions, any of which may lead to a finding of unfairness:
- Does the conduct injure consumers significantly?
- Does the conduct offend an established public policy?
- Is the conduct oppressive, unscrupulous, immoral, or unethical?
The FTC has the authority to regulate and take enforcement action against any business for conduct that it deems to be unfair. This may include coordinating efforts with the Department of Justice if the FTC encounters business activity that violates criminal laws.
Discussion Question
What do you think about the extent of the FTCs authority to regulate and administer antitrust laws? Does the FTC have too much autonomy in determining what constitutes unfair competition? Why or why not? What do the above-referenced questions indicate about the objectives of the FTC in enforcing antitrust law?
Practice Question
What standard does the FTC apply when determining whether conduct runs afoul of the antitrust laws?
Related Topics
- Antitrust Law (Intro)
- What is Antitrust Law?
- What are the Major Antitrust Laws?
- What government agency enforces antitrust law?
- What Sanctions are available under antitrust law?
- What is the Sherman Act of 1890 (Sherman Act)?
- What is a Contract, Combination, of Conspiracy in restraint of trade?
- What is Per Se Illegality and the Rule of Reason?
- What is a Monopoly?
- Herfindahl Hirschman Index (HHI) Definition
- What businesses are exempt from the Sherman Act?
- Horizontal Restraint Sherman Act?
- Sharing Information?
- Refusal to Deal?
- Territorial Agreement?
- Price Fixing?
- Resale restraint?
- Exclusive dealing?
- Tying products?
- Territorial agreements?
- What is Monopolization under the Sherman Act?
- What is the Clayton Act of 1914 (Clayton Act)?
- What is price discrimination under the Clayton Act?
- What are special arrangements prohibited under the Clayton Act?
- When are tying contracts an illegal restraint under the Clayton Act?
- When are reciprocal dealing contracts an illegal restraint under the Clayton Act?
- How does the Clayton Act regulate mergers and acquisition?
- FTC Act Antitrust Law
