What is the Federal Trade Commission?
The Federal Trade Commission (FTC) is a regulatory body that is important to both consumers and businesses. It was established to help ensure a competitive marketplace. It enforces a wide variety of consumer protection laws and trade regulations, including: - Protecting consumers from deceptive advertising
- Enforcing a variety of laws related to consumer credit
- Regulating business marketing and warranty practices
- Protecting consumers from consumer fraud and market failures that impose substantial costs on consumers
- Enforcing laws and trade regulation rules
The FTC¿s main goal is to ensure that the markets are vigorous, efficient, and free of restrictions. Thus, the FTC tries to enforce consumer protection laws that prevent fraud, deception, and unfair business practices. What Does the Bureau of Consumer Protection Do?
The purpose of the Bureau of Consumer Protection (¿the Bureau¿) is to protect consumers against unfair, deceptive, or fraudulent practices. It enforces consumer protection laws enacted by Congress and trade regulation rules issued by the FTC. Its actions include: - Individual company and industry-wide investigations
- Administrative and federal court litigation
- Rulemaking proceedings
- Consumer and business education
- Informing Congress and other government entities of the impact that proposed actions could have on consumers
What Are the Responsibilities of the Bureau¿s Divisions?
The Bureau is divided into six divisions and programs. These include: - Division of Advertising Practices ¿ Enforces federal truth-in-advertising laws
- Division of Enforcement ¿ Conducts law enforcement activities to protect consumers
- Division of Financial Practices ¿ Develops policy and enforces laws related to financial and lending practices affecting consumers
- Division of Marketing Practices ¿ Enforces consumer protection laws by filing actions on behalf of the FTC to stop scams, prevent scam artists from repeating their fraudulent schemes, freeze assets, and obtain compensation for victims
- Division of Planning and Information ¿ Helps consumers get the information they need to protect themselves, and gives FTC attorneys and other consumer protection law enforcers the information they need to take action
- International Division of Consumer Protection ¿ Promotes consumer confidence in the international marketplace
How Does the FTC Bring an Action?
The FTC may decide to take action when it receives letters from consumers or businesses, pre-merger notification filings, Congressional inquiries or articles on consumer or economic subjects. The FTC¿s investigations are usually non-public. This protects the investigation and the companies involved. If the FTC believes a company has violated the law, it may try to get voluntary compliance by entering into a consent order with the company (i.e. the company agrees to stop its practices). If the FTC cannot get such an agreement, it may issue an administrative complaint or seek injunctive relief from the courts. If a violation is found, the company may be ordered to cease and desist. The FTC can also issue Trade Regulation Rules. During the rulemaking proceedings, the public can attend hearings and file written comments on a proposed rule. Do I Need a Lawyer Experienced with the FTC?
The FTC, in response to complaints by consumers and others, will bring actions against a company by itself. A lawyer may help you understand the law, but the FTC is not a court of law. |
