Federal Trade Commission - Explained
What is the FTC?
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What is the Federal Trade Commission?
The Federal Trade Commission (FTC) is the primary federal agency with the mission of protecting consumers. Authorized under the Fair Trade Commission Act, the FTC is an independent regulatory agency charged with keeping competition free and fair and with protecting consumers. The President appoints commissioners to the FTC and Congress approves the agency budget. A special bureau called the Bureau of Consumer Protection (BCP) promotes the consumer protection mission of the FTC. It promotes competition under the antitrust laws as well as protects consumers through the FTC Acts prohibition on unfair or deceptive acts or practices in commerce. In summary, the overall objective of the FTC is to ensure fair competition by preventing those who deceive consumers from diverting sales or trade from those who compete honestly.
Example: The FTC regulates commercial practices, such as advertising and marketing, sales of financial products and practices, privacy and identity protection, etc. Discussion: How do you feel about the functions and objectives of the FTC? Do you think it should be the role of a special administrative agency to promote consumer interests in the commercial market? Why or why not? Practice Question: What is the role and purpose of the Federal Trade Commission with regard to consumer protection laws?
Next Article: FTC Regulatory Enforcement Procedures Back to: CONSUMER PROTECTION
Academic Research on the Federal Trade Commission
- Bureaucratic discretion or congressional control? Regulatory policymaking by the Federal Trade Commission, Weingast, B. R., & Moran, M. J. (1983). Journal of Political Economy, 91(5), 765-800.
- The federal trade commission, Posner, R. A. (1969). U. Chi. L. Rev., 37, 47.
- The Federal Trade Commission and False Advertising, Millstein, I. M. (1964). Columbia Law Review, 64(3), 439-499.
- The Federal Trade Commission Since 1970, Clarkson, K. W., & Muris, T. J. (2008). Cambridge University Press.
- Proof of consumer deception before the Federal Trade Commission, Gellhorn, E. (1968). U. Kan. L. Rev., 17, 559.
- The Federal Trade Commission and Congressional Oversight of Antitrust Enforcement, Kovacic, W. E. (1981). Tulsa LJ, 17, 587.
- The Meaning of Unfair Methods of Competition in Section 5 of the Federal Trade Commission Act, Averitt, N. W. (1979). BcL REv., 21, 227.
- Administrative Reform of the Federal Trade Commission, Elman, P. (1970). Geo. LJ, 59, 777.
- The Federal Trade Commission: internal organization and procedure, Auerbach, C. A. (1963). Minn. L. Rev., 48, 383.
- The Constitutionality of Investigations by the Federal Trade Commission: I, Handler, M. (1928). Colum. L. Rev., 28, 708.