Federal Trade Commission

Federal Trade Commission

An independent federal agency whose main goals are to protect consumers and to ensure a strong competitive market by enforcing a variety of consumer protection and antitrust laws. These laws guard against harmful business practices and protect the market from anti-competitive practices such as large mergers and price-fixing conspiracies.

Investopedia Says:
The Federal Trade Commission deals with complaints that are filed regarding unfair business practices such as scams, deceptive advertising and monopolistic practices. It reviews these complaints to determine if businesses are in fact engaging in harmful practices. The FTC is also responsible for reviewing mergers in the market to ensure that they do not hurt competition in the market and potentially harm consumers. Generally speaking, the FTC does not have the ability to directly enforce its rulings, but it can go to the courts to have them enforced.

Related Links:
Check out the history and reasons behind antitrust laws, as well as the arguments over them. Antitrust Defined
To bamboozle someone out of their money is an age-old ruse. Learn about some of the gimmicks modern-day swindlers use and avoid becoming a statistic. Online Investment Scams Tutorial
Find out how this regulatory body protects the rights of investors. Policing The Securities Market: An Overview Of The SEC

Government agency created in 1915, under the Federal Trade Commission Act of 1914, whose purpose is to protect the system of free enterprise and competition in the interests of a strong economy. In the words of the Federal Trade Commission Act, Section 5, the FTC is responsible to "promote free and fair competition in interstate commerce in the interest of the public through prevention of price-fixing agreements, boycotts, combinations in restraint of trade, unfair methods of competition, and unfair and deceptive acts and practices." The commission consists of five commissioners, each of whom serves a seven-year term. Not more than three of the members may be from the same political party. The FTC is empowered to investigate interstate and foreign commerce as well as to take legal action to enforce the laws that fall under its jurisdiction. In the advertising industry, the FTC functions to prevent fraudulent or deceptive advertising, and unfair trade practices.

Government agency, under the McCarran-Ferguson Act (Public Law 15) that has no authority over insurance matters to the extent the states regulate insurance to the satisfaction of Congress. However, this does not prevent the FTC from conducting investigations into the insurance industry. For example, in 1970 the Congress charged the FTC with the responsibility of enforcing the Fair Credit Reporting Act which requires an insurance company to notify an insurance applicant of an impending Inspection Report and to release information so collected to the applicant upon request. If the report results in the applicant's rejection for insurance, he must be notified of the adverse report and his right to its contents. Perhaps the best known FTC investigation involved its study "Life Insurance Cost Disclosure," that was extremely critical of industry cost disclosure practices.

A federal agency, headquartered in Washington, DC, that regulates advertising and other promotion and sales practices of firms engaged in interstate commerce. The FTC does not regulate interstate land sales (HUD), anticompetitive activities (JUSTICE), or sale of securities (SEC).
Example: Abel, a builder, was found guilty of false television advertising by the FTC.

Address:

Federal Trade Commission 600 Pennsylvania Avenue NW Washington, DC 20580 202-326-2222 www.ftc.gov

The Federal Trade Commission (FTC) was established as an independent administrative agency pursuant to the Federal Trade Commission Act of 1914. The purpose of the FTC is to enforce the provisions of the Federal Trade Commission Act, which prohibits "unfair or deceptive acts or practices in commerce." The Clayton Antitrust Act (1914) also granted the FTC the authority to act against specific and unfair monopolistic practices. The FTC is considered to be a law enforcement agency, and like other such agencies it lacks punitive authority. Although the FTC cannot punish violators—that is the responsibility of the judicial system—it can issue cease and desist orders and argue cases in federal and administrative courts.

Today, the Federal Trade Commission serves an important function as a protector of both consumer and business rights. While the restrictions that it imposes on business practices often receive the most attention, other laws enforced by the FTC—such as the 1979 Franchise Rule, which directed franchisors to provide full disclosure of franchise information to prospective franchisees—have been of great benefit to entrepreneurs and small business owners. Basically, all business owners should educate themselves about the guidelines set forth by the FTC on various business practices. Some of its rules can be helpful to small businesses and entrepreneurs. Conversely, businesses that flout or remain ignorant of the FTC's operating guidelines are apt to regret it.

Creation of the Ftc

The FTC was created in response to a public outcry against the abuses of monopolistic trusts during the late 19th and early 20th centuries. The Sherman Antitrust Act of 1890 had proven inadequate in limiting trusts, and the widespread misuse of economic power by companies became so problematic that it became a significant factor in the election of Woodrow Wilson to the White House in 1912. Once Wilson assumed the office of the Presidency, he followed through on his campaign promises to address the excesses of America's trusts. Wilson's State of the Union Message of 1913 included a call for extensive antitrust legislation. Wilson's push, combined with public displeasure with the situation, resulted in the passage of two acts. The first was the Federal Trade Commission Act, which created and empowered the FTC to define and halt "unfair practice" in trade and commerce. It was followed by the Clayton Antitrust Act, which covered specific activities of corporations that were deemed to be not in the public interest. Activities covered by this act included those mergers which inhibited trade by creating monopolies. The FTC began operating in 1915; the Bureau of Operations, which had previously monitored corporate activity for the federal government, was folded into the FTC.

The FTC is empowered to enforce provisions of both acts following specific guidelines. The offense must fall under the jurisdiction of the various acts and must affect interstate commerce. The violations must also affect the public good; the FTC does not intervene in disputes between private parties. As noted, the FTC lacks authority to punish or fine violators, but if an FTC ruling—such as a cease and desist order—is ignored, the FTC can seek civil penalties in federal court and seek compensation for those harmed by the unfair or deceptive practices.

Since 1914 both the Federal Trade Commission Act and the Clayton Act have been amended numerous times, thus expanding the legal responsibilities of the FTC. Some of the more notable amendments are:

• Webb-Pomerene Export Trade Act of 1918—This act promoted exports by encouraging cooperative activities
• Robinson-Patman Act of 1936—This act strengthened the Clayton Act and addressed pricing practices of suppliers and wholesalers
• Wool Products Labeling Act of 1939—This act ensured the purity of wool products
• Lanham Trademark Act of 1946—This act required the registration and protection of trademarks used in commerce
• Fair Packaging and Labeling Act of 1966—This act legislated against unfair or deceptive labeling and packaging
• Truth in Lending Act of 1969—This legislation offered increased protection to consumers by requiring that companies provide full disclosure of credit terms and limit consumer liability concerning stolen credit cards; it also established regulations for advertising for credit services
• Fair Credit Reporting Act of 1970—This act established regulations and fair operating practices for credit reporting agencies
• Magnuson-Moss Warranty-Federal Trade Commission Improvement Act of 1975—This legislation expanded the authority of the FTC by allowing it to seek redress for consumers and civil penalties for repeat offenders. It also increased the FTC's authorization to pursue violations "affecting commerce" rather than violations "in commerce." This was an important distinction. Under the terms of the act, manufacturers are not required to warrant their products but if they do they must specify whether their warranties are "full" or "limited." The law also introduced rules requiring businesses to explain any limitations on warranties in writing
• FTC Franchise Rule of 1979—This rule requires franchisors to provide prospective franchisees with a full disclosure of relevant information about the franchise
• Telemarketing and Consumer Fraud and Abuse Prevention Act of 1994—This law, commonly referred to as the "Telemarketing Sales Rule," was put together in response to widespread consumer complaints about fraudulent and/or bothersome telemarketing practices. The act imposed meaningful curbs on such activities. Among the restrictions imposed by the legislation were specific identity disclosure requirements, prohibitions on misrepresentations, limitations on time during which telemarketers can make their calls, prohibitions on making calls to consumers who specifically ask not to be called, restrictions on sales of certain goods and services, and new recordkeeping requirements. The FTC and many consumer and business advocates, however, contend that FTC penalties for deceptive telemarketing practices are insufficent to meaningful curtail such activities. They are currently engaged in efforts to increase the size of FTC fines and support stiffer penalties (including jail time) for offending parties.

In recent years, the Federal Trade Commission has also turned its attention to Internet commerce. Specifically, it is, in conjunction with Congress, exploring the possibility of issuing rules to companies regulating their handling of personal data and other Internet privacy issues. For much of the 1990s, the FTC favored self-regulation in this area. But a 2000 survey conducted by the FTC found that only 20 percent of major e-commerce sites mets the agency's standards for consumer privacy protection. These findings, coupled with widespread concerns in both the public and private sectors about Internet security, may eventually trigger the creation of new FTC regulations for companies that operate electronic business sites.

Ftc Bureaus

The FTC is administered by a five-member commission. Each commissioner is appointed by the President for a seven-year term with the advice and consent of the Senate. The commission must represent at least three political parties and the President chooses from its ranks one commissioner to be chairperson. The chairperson appoints an executive director with the consent of the full commission; the executive director is responsible for general staff operations.

Three bureaus of the FTC interpret and enforce jurisdictional legislation: the Bureau of Consumer Protection, the Bureau of Competition, and the Bureau of Economics.

BUREAU OF CONSUMER PROTECTION. The Bureau of Consumer Protection is charged with protecting the consumer from unfair, deceptive, and fraudulent practices. It enforces congressional consumer protection laws and regulations issued by the Commission. In order to meet its various responsibilities, the Bureau often becomes involved in federal litigation, consumer, and business education, and conducts various investigations under its jurisdiction. The Bureau has divisions of advertising, marketing practices, credit, and enforcement.

BUREAU OF COMPETITION. The FTC's Bureau of Competition is responsible for antitrust activity and investigations involving restraint of trade. The Bureau of Competition works with the Antitrust Division of the U.S. Department of Justice, but while the Justice Department concentrates on criminal violations, the Bureau of Competition deals with the technical and civil aspects of competition in the marketplace.

BUREAU OF ECONOMICS. The Bureau of Economics predicts and analyzes the economic impact of FTC activities, especially as these activities relate to competition, interstate commerce, and consumer welfare. The Bureau provides Congress and the Executive Branch with the results of its investigations and undertakes special studies on their behalf when requested.

Applications for Complaints

The FTC becomes aware of alleged unfair or deceptive trade practices as a result of its own investigations or complaints from consumers, business people, trade associations, other federal agencies, or local and state governmental agencies. These complaints become known as "applications for complaints" and are reviewed to determine whether or not they fall under FTC jurisdiction. If the application does fall under FTC jurisdiction, the case can be settled if the violator agrees to a consent order. This is a document issued by the FTC after a formal—and in some cases—public hearing to hear the complaint. Consent orders are handed down in situations where the offending company or person agrees to discontinue or correct the challenged practices. If an agreement is not reached via a consent order, the case is litigated before an FTC Administrative Law Judge. After the judge has handed down his or her decision, either the FTC counsel or the respondent can appeal the decision to the Commission. The Commission may either dismiss the case or issue a cease and desist order. If a cease and desist order is issued, the respondent has sixty days to take all necessary steps to obey the order or launch an appeal process through the federal court system.

Further Reading:

Holt, William Stull. The Federal Trade Commission: Its History, Activities, and Organization. AMS Press, 1974.

Hoover, Kent. "FTC Faces Tough Task Stemming Tide of Fraudulent Sales." Tampa Bay Business Journal. April 14,2000.

Labaree, Robert V. The Federal Trade Commission: A Guide to Sources. Garland, 2000.

"Online Enforcement Efforts Outlined." New York Times. November 1, 2000.

United States Federal Trade Commission Annual Report. Federal Trade Commission, U.S. Government Printing Office.

The Federal Trade Commission (FTC) emerged from Progressive Era reformers' search for better means to manage large-scale industrial capitalism and to combat monopoly. By 1912 reformers agreed on the need for a new government agency to regulate big business. They disagreed, however, over the purposes of such an agency. One faction, including Woodrow Wilson and Louis Brandeis, sought a trust-busting commission that would dismantle big business in order to promote a more competitive market of small firms. Another group, centered around Theodore Roosevelt, envisioned an agency that would cooperate with business to help plan economic behavior.

The Federal Trade Commission Act of 1914 fulfilled both visions. The act created a five-person commission to oversee and investigate all commerce but banking and common carriers, empowered this commission with subpoena powers and also to issue cease and desist orders against "unfair" competitive practices, and instructed the agency to report to Congress to assist in legislation. A complementary bill, the Clayton Antitrust Act of 1914, enumerated FTC jurisdiction by specifying unfair practices, among them anticompetitive mergers and acquisitions. Compromise between antitrust and cooperative reformers ensured passage of the Clayton and FTC acts, but it gave the new commission a contradictory mandate to serve as both adversary and advisor to big business. The two bills also bestowed the FTC with uncertain authority and independence by dividing antitrust enforcement between the commission and the Justice Department and by subjecting the FTC to review by the president, Congress, and the courts. In the face of ambiguities the agency proceeded with diffidence. At first the commission issued antitrust orders and prosecutions with hesitation, electing instead to hold information conferences with industry. Following America's entry into World War I the government, with the help of the FTC, suspended antitrust laws and encouraged business combination. When the FTC did seek to pursue antitrust enforcement, as in its investigation of the meatpacking industry for price-fixing and lack of competition, its congressional foes countered by weakening the commission's authority and jurisdiction.

External Search for Limits, 1919–1935

Congressional restriction of the FTC following the meat-packing investigation inaugurated an era in which the legislature, president, and courts would resolve the contradictions in the FTC's regulatory mandate by limiting the commission's antitrust activity. The Supreme Court presented the greatest challenge to the FTC. The Court's ruling in FTC v. Gratz 253 U.S. 421 (1920) restricted "unfair practices" to those understood at the time of the 1914 legislation, a standard that prevented the commission from innovating its tactics and resulted in a string of legal defeats for the agency. The appointment by Republican presidents Harding and Coolidge of commissioners hostile to antitrust enforcement and amenable to business interests also restrained the FTC's regulatory activities.

Responding to these limits, FTC policy became cautious and reactive during the 1920s. The commission's number of cease and desist orders and antitrust cases dropped, and the agency instead turned to fostering consensus between government and industry, and association between firms within an industry, through trade practice conferences, which promoted the planning of production costs and prices.

In the depression years prior to 1935, the Hoover and Roosevelt administrations continued the associationalist and consensual model of regulation and furthered external limits on FTC action. New Deal policies undermined the commission's antitrust efforts and codified associationalism and restraint of competition as federal policy. At the same time, the Supreme Court continued to undermine FTC jurisdiction and enforcement powers. In FTC v. Raladam, 283 U.S. 643 (1931), the Court raised the commission's burden of proof by requiring it to show that real injury to competitors had occurred from a suspect trade practice.

Expansion and Consolidation, 1935–1969

Shifts in court opinion sparked an expansion in the powers of the FTC. A series of Supreme Court rulings overturned restrictions placed on the agency and allowed the commission an active role in regulation. In FTC v. Keppel & Brothers, Inc., 291 U.S. 304 (1934), the Court reversed Gratz and enabled the FTC to broadly interpret the meaning of "unfair practices." The Court's ruling in Humphery's Executor v. United States, 295 U.S. 602 (1935), reinforced the commission's independence from presidential coercion. And the Schechter Poultry Corporation v. United States, 295 U.S. 495 (1935), decision declared unconstitutional the New Deal programs that had advocated anticompetitive policies.

The FTC also benefited from a resurgence of antitrust and procompetition ideas among New Deal policymakers that favored extending the FTC's authority and oversight. The Robinson-Patman Act of 1936 increased the commission's powers over price discrimination by retailers and suppliers. The Wheeler-Lea Act of 1938 reversed the burden of proof standards established in Raladam and broadened the FTC's mandate to include the protection of consumers against deceptive and unfair practices. The commission's investigations now found a receptive audience in congress and spurred new regulatory legislation like the Securities Exchange Act of 1934 and the Public Utility Holding Company Act of 1935.

Although the federal government suspended antitrust enforcement during World War II, the trend of FTC expansion and consolidation continued into the postwar era. The agency won a major victory against price-fixing in the cement industry in 1948 and again in 1950 when a presidential veto defeated the industry's congressional allies. A 1949 review of the commission, chaired by former President Hoover, recommended increasing the FTC chairman's authority and restructuring the agency to facilitate enforcement efforts; Congress institutionalized these recommendations in the FTC Reorganization Act of 1950. That same year the Celler-Kefauver Act broadened the commission's jurisdiction over mergers and combined assets. In the early 1960s the FTC began issuing trade rules to entire industries and increasingly scrutinized advertisements for their effect on competition and consumer interests. FTC activity during the period of expansion reflected the commission's responsiveness to evolving economic realities and its increasing attention to structural barriers to competition.

Reform, Activism, and Reaction, 1969–1990

The consolidation and expansion of the FTC raised concern during the 1960s that the agency had become complacent and ineffective. In 1969 a report issued by consumer advocate Ralph Nader criticized the FTC for failing to fulfill its antitrust and consumer protection duties. When an American Bar Association report of that same year agreed, the Nixon administration responded by reorganizing and reorienting the commission towards more energetic regulation.

These reforms inaugurated the FTC's greatest period of activism. The commission's caseload boomed in the 1970s and included ambitious prosecutions of anti-competitive practices in the breakfast cereal and petroleum industries. Congress widened the commission's jurisdiction and enforcement powers with the Magnuson-Moss Warranty/FTC Improvement Act of 1975, which empowered the commission to issue consumer protection rules for entire industries, and the Hart-Scott-Rodino Antitrust Improvement Act of 1976, which enhanced the FTC's ability to scrutinize mergers by requiring advance notice of such action.

Support for FTC activism began to wane by the late 1970s and fell precipitously following the commission's efforts in 1978 to regulate television advertisements aimed at children. Critics of the FTC argued that the commission had become too independent, too powerful, and heedless of the public good. Congressional critics sought new limits on FTC activity, and in 1979 they temporarily shut off FTC appropriations. The FTC Improvement Act of 1980 restored the agency's funding but enacted new congressional restrictions.

The Reagan administration further targeted the FTC. Executive Order 12291, issued 17 February 1981, placed the reform of regulatory commissions under the control of the president, and the FTC's actions soon turned from aggressive regulation to cooperation with business interests. The agency abandoned cases with sweeping structural implications, emphasized consumer fraud over antitrust enforcement, and liberalized its merger guidelines. The commission's Competition Advocacy Program, for example, championed promarket, probusiness regulatory policies before other state and federal agencies.

The 1990s and Beyond

During the 1990s the FTC increased its enforcement activities in consumer protection and antitrust while attempting to recast regulation to meet the challenge of an increasingly global and technology-driven economy. Adapting quickly to the development of the Internet and computer industry, the commission tackled consumer protection issues such as online privacy, e-commerce, and intellectual property rights, and issued guidelines for advertisements on the Internet. The agency launched fact-finding studies to formulate a regulatory policy for the high-tech sector and held hearings to educate consumers and industry about new enforcement standards. The FTC also adapted its antitrust activities to the new economy: in 1997 the commission launched an investigation of Intel for anticompetitive practices, and in 2000 it arbitrated the merger of America Online with Time Warner.

The FTC's efforts outside the technology economy also displayed innovation and renewed assertiveness. The commission successfully sued the tobacco industry to end cigarette advertisements that appealed to children. And in the face of the decade's merger wave, the FTC either blocked or negotiated a number of high-profile mergers, including the successful mergers of Boeing and McDonnell Douglas in 1997 and Exxon and Mobil in 1999.

Beginning with the appointment of a new chairman in 2001, the FTC retreated from the enforcement pattern of the 1990s. The commission announced its intent to tailor antitrust enforcement to the interests of the economy by exploring the benefits, especially to the consumer, of mergers and by promoting market solutions to problems of competition.

Bibliography

Davis, G. Cullom. "The Transformation of the Federal Trade Commission, 1914–1929." Mississippi Valley Historical Review 49 (1962): 437–455.

Hawley, Ellis W. The New Deal and the Problem of Monopoly: A Study in Economic Ambivalence. Princeton, N.J.: Princeton University Press, 1966.

Jaenicke, Douglas Walter. "Herbert Croly, Progressive Ideology, and the FTC Act." Political Science Quarterly 93 (1978): 471–493.

McCraw, Thomas K. Prophets of Regulation: Charles Francis Adams, Louis D. Brandeis, James M. Landis, Alfred E. Kahn. Cambridge, Mass.: Harvard University Press, Belknap Press, 1984.

Murphy, Patrick E., and William L. Wilkie, eds. Marketing and Advertising Regulation: The Federal Trade Commission in the 1990s. Notre Dame, Ind.: University of Notre Dame Press, 1990. Contains several noteworthy essays on the history and development of the FTC.

Wagner, Susan. The Federal Trade Commission. New York: Praeger, 1971.

—James Tejani

A federal administrative agency established in 1914 to protect consumers against unfair methods of competition and deceptive business practices, including sales frauds and violation of the antitrust laws. The agency's Bureau of Competition is responsible for the enforcement of the antitrust laws. The Bureau of Consumer Protection protects consumers against sales, frauds, and any other unfair or deceptive business practices. The Bureau of Economics performs economic analysis both for informational purposes and for use in litigation by the trial staff. It accomplishes this goal chiefly through its authority to order the offender to "cease and desist" from a prohibited practice. If its order is disobeyed, the F.T.C. Must go to federal court to seek enforcement.

A federal agency charged with enforcing antitrust legislation and preventing false advertising, among other duties.

Federal Trade Commission
Official seal
Agency overview
Formed	September 26, 1914
Preceding agency	Bureau of Corporations
Jurisdiction	Federal government of the United States
Headquarters	Washington, D.C.
Employees	1200 (2007)
Agency executive	Jon Leibowitz, Chairman
Website
www.ftc.gov
Footnotes
[1][2]

The Federal Trade Commission (FTC) is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act. Its principal mission is the promotion of "consumer protection" and the elimination and prevention of what regulators perceive to be harmfully "anti-competitive" business practices, such as coercive monopoly.

The Federal Trade Commission Act was one of President Wilson's major acts against trusts. Trusts and trust-busting were significant political concerns during the Progressive Era. Since its inception, the FTC has enforced the provisions of the Clayton Act, a key antitrust statute, as well as the provisions of the FTC Act, 15 U.S.C. § 41 et seq. Over time, the FTC has been delegated the enforcement of additional business regulation statutes and has promulgated a number of regulations (codified in Title 16 of the Code of Federal Regulations).

Contents 1 Organization of the Federal Trade Commission 1.1 FTC Chairmen and Commissioners 1.2 Bureau of Consumer Protection 1.3 Bureau of Competition 1.4 Bureau of Economics 2 Activities of the FTC 3 Legislation 4 See also 5 References 6 External links

Organization of the Federal Trade Commission

Apex Building, built in 1938 (FTC headquarters) in Washington, DC

FTC Chairmen and Commissioners

The Federal Trade Commission is headed by five Commissioners who are nominated by the President and confirmed by the United States Senate. Under the FTC Act, no more than three Commissioners may be from the same political party. A Commissioner's term of office is seven years, and the terms are staggered so that in a given year no more than one Commissioner's term expires (although in certain years no Commissioner's term expires and in years where Commissioners choose to step down, more than one new Commissioner may be appointed).

The current commissioners are:

• Jon Leibowitz - Chairman
• William Kovacic
• Pamela Jones Harbour
• J. Thomas Rosch

Recent former commissioners were:

• Deborah Platt Majoras (August 16, 2004 - March 29, 2008)
• Thomas B. Leary (November 17, 1999 - December 31, 2005)
• Orson Swindle (December 18, 1997 - June 30, 2005)
• Mozelle W. Thompson (December 17, 1997 - August 31, 2004)
• Timothy J. Muris (June 4, 2001 - August 15, 2004)
• Sheila F. Anthony (September 30, 1997 - August 1, 2003)
• Robert Pitofsky (June 29, 1978 - April 30, 1981) & (April 11, 1995 - May 31, 2001)
• Mary L. Azcuenaga (November 27, 1984 - June 3, 1998)
• Roscoe B. Starek, III (November 19, 1990 - December 18, 1997)
• Janet D. Steiger (August 11, 1989 - September 28, 1997)
• Christine A. Varney (October 17, 1994 - August 5, 1997)
• Dennis A. Yao (July 16, 1991 - August 31, 1994)
• Deborah K. Owen (October 25, 1989 - August 26, 1994)
• Andrew Strenio (March 17, 1986 - July 15, 1991)
• Terry Calvani (November 18, 1983 - September 25, 1990)
• Daniel Oliver (April 21, 1986 - August 10, 1989)
• Margo E. Machol (November 29, 1988 - October 24, 1989) [recess appointment]
• Patricia P. Bailey (October 29, 1979 - May 15, 1988)
• James C. Miller III (September 25, 1982 - October 5, 1985)
• George W. Douglas (December 27, 1982 - September 18, 1985)
• Michael Pertschuk (April 21, 1977 - October 15, 1984)
• David Clanton (August 26, 1975 - October 14,1983)
• Paul Rand Dixon (March 21, 1961 - September 25, 1981)
• Elizabeth Hanford Dole (December 4, 1973 - March 9, 1979)
• Stephen A. Nye (May 5, 1974 - May 5, 1978)
• Calvin J. Collier (March 24, 1976 - December 31, 1977)
• Lewis A. Engman (February 20, 1973 - December 31, 1975)
• Mayo J. Thompson (July 8, 1973 - September 26, 1975)
• David J. Dennison, Jr. (October 18, 1970 - December 31, 1973)
• Mary Gardner Jones (October 29, 1964 - November 2, 1973)
• Everette MacIntyre (September 26, 1961 - August 30, 1973)
• Miles W. Kirkpatrick (September 14, 1970 - February 20, 1973)
• Philip Elman (April 21, 1961 - October 18, 1970)
• Casper W. Weinberger (December 31, 1969 - August 6, 1970)

Bureau of Consumer Protection

The Bureau of Consumer Protection’s mandate is to protect consumers against unfair or deceptive acts or practices in commerce. With the written consent of the Commission, Bureau attorneys enforce federal laws related to consumer affairs as well as rules promulgated by the FTC. Its functions include investigations, enforcement actions, and consumer and business education. Areas of principal concern for this bureau are: advertising and marketing, financial products and practices, telemarketing fraud, privacy and identity protection etc. The bureau also is responsible for the United States National Do Not Call Registry.

Under the FTC Act, the Commission has the authority, in most cases, to bring its actions in federal court through its own attorneys. In some consumer protection matters, the FTC appears with, or supports, the U.S. Department of Justice.

Bureau of Competition

The Bureau of Competition is the division of the FTC charged with elimination and prevention of "anticompetitive" business practices. It accomplishes this through the enforcement of antitrust laws, review of proposed mergers, and investigation into other non-merger business practices that may impair competition. Such non-merger practices include horizontal restraints, involving agreements between direct competitors, and vertical restraints, involving agreements among businesses at different levels in the same industry (such as suppliers and commercial buyers).

The FTC shares enforcement of antitrust laws with the Department of Justice. However, while the FTC is responsible for civil enforcement of antitrust laws, the Antitrust Division of the Department of Justice has the power to bring both civil and criminal action in antitrust matters.

Bureau of Economics

The Bureau of Economics was established to support the Bureau of Competition and Consumer Protection by providing expert knowledge related to the economic impacts of the FTC's legislation and operation.

Activities of the FTC

Competition law
Basic concepts
History of competition law Monopoly Coercive monopoly Natural monopoly Barriers to entry Market power SSNIP test Relevant market Merger control
Anti-competitive practices
Monopolization Collusion Formation of cartels Price fixing Bid rigging Product bundling and tying Refusal to deal Group boycott Exclusive dealing Dividing territories Conscious parallelism Predatory pricing Misuse of patents and copyrights
Laws and doctrines
United States Sherman Antitrust Act Clayton Antitrust Act Robinson-Patman Act FTC Act Hart-Scott-Rodino Act Merger guidelines Essential facilities doctrine Noerr-Pennington doctrine Parker immunity doctrine Rule of reason Europe UK competition law Irish competition law Australia Trade Practices Act 1974
Enforcement authorities and organizations
International Competition Network List of competition regulators
This box: view • talk • edit

The FTC carries out its mission by investigating issues raised by reports from consumers and businesses, pre-merger notification filings, congressional inquiries, or reports in the media. These issues include, for instance, false advertising and other forms of fraud. FTC investigations may pertain to a single company or an entire industry. If the results of the investigation reveal unlawful conduct, the FTC may seek voluntary compliance by the offending business through a consent order, file an administrative complaint, or initiate federal litigation.

Traditionally an administrative complaint is heard in front of an independent administrative law judge(ALJ) with FTC staff acting as prosecutors. The case is reviewed de novo by the full FTC commission which then may be appealed to the U.S. Court of Appeals and finally to the Supreme Court. A summary of cases heard since 1996 ^[1] indicates that the commission has never upheld an administrative law judge's decision to dismiss a complaint. After adverse results in which the independent administrative law judges have ruled against the FTC (Schering Plough^[2] and Rambus^[3]) there has been a move towards FTC commissioners being appointed as ALJ (Commissioner Rosch in Inova Health^[4]).

Under the FTC Act, the federal courts retain their traditional authority to issue equitable relief, including the appointment of receivers, monitors, the imposition of asset freezes to guard against the spoliation of funds, immediate access to business premises to preserve evidence, and other relief including financial disclosures and expedited discovery. In numerous cases, the FTC employs this authority to combat serious consumer deception or fraud. Additionally, the FTC has rulemaking power to address concerns regarding industry-wide practices. Rules promulgated under this authority are known as Trade Rules.

In the mid-1990s, the FTC launched the fraud sweeps concept where the agency and its federal, state, and local partners filed simultaneous legal actions against multiple telemarketing fraud targets. The first sweeps operation was Project Telesweep^[5] in July 1995 which cracked down on 100 business opportunity scams.

In 1984,^[6] the FTC began to regulate the funeral home industry in order to protect consumers from deceptive practices. The FTC Funeral Rule requires funeral homes to provide all customers (and potential customers) with a General Price List ("GPL"), specifically outlining goods and services in the funeral industry, as defined by the FTC, and a listing of their prices.^[7] By law, the GPL must be presented to all individuals that ask, no one is to be denied a written, retainable copy of the GPL. In 1996, the FTC instituted the Funeral Rule Offenders Program (FROP), under which "funeral homes make a voluntary payment to the U.S. Treasury or appropriate state fund for an amount less than what would likely be sought if the Commission authorized filing a lawsuit for civil penalties. In addition, the funeral homes participate in the NFDA compliance program, which includes a review of the price lists, on-site training of the staff, and follow-up testing and certification on compliance with the Funeral Rule."^[6]

One of the Federal Trade Commission's other major focuses is identity theft. The FTC serves as a federal repository for individual consumer complaints regarding identity theft. Even though the FTC does not resolve individual complaints, it does use the aggregated information to determine where federal action might be taken. The complaint form is available online or by phone (1-877-ID-THEFT).

Legislation

The first version of a bill to establish a commission to regulate trade was introduced on January 25, 1912 by Oklahoma congressman Dick Thompson Morgan, once known as the "father of the Federal Trade Commission." Morgan also made th first speech on the House floor advocating its creation on February 21, 1912. Though the initial bill did not pass, the Republican party platform of June 1912 endorsed the establishment of the Federal Trade Commission. Morgan reintroduced a slightly amended version of his bill during the April 1913 special session.

On May 23, 2007, the House passed the Energy Price Gouging Prevention Act, H.R. 1252, which will provide immediate relief to consumers by giving the Federal Trade Commission the authority to investigate and punish those who artificially inflate the price of energy. It will ensure the federal government has the tools it needs to adequately respond to energy emergencies and prohibit price gouging – with a priority on refineries and big oil companies^[8].

See also

• Better Business Bureau Video Series
• Brandeis Award, awarded annually by the FTC to "outstanding litigators"
• Business opportunity
• Competition law
• Competition policy
• Competition regulator
• Consumer Product Safety Commission
• Consumer protection
• Consumers' Association
• Fair Debt Collection Practices Act
• FTC Fair Information Practices
• Sweepstakes

References

• G. Cullom Davis. "The Transformation of the Federal Trade Commission, 1914–1929," The Mississippi Valley Historical Review, Vol. 49, No. 3. (Dec., 1962), pp. 437–455 (archived in JSTOR)

1. ^ Summary of FTC decisions since 1996
2. ^ Docket No. 9297: In the Matter of Schering-Plough Corporation
3. ^ Docket No. 9302: In the Matter of Rambus Incorporated
4. ^ Docket No. 9326: In the Matter of Inova Health System Foundation
5. ^ Business Opportunity Scam "Epidemic"
6. ^ ^{a b} FTC Announces Results of Compliance Testing of Over 300 Funeral Homes in the Second Year of the Funeral Rule Offenders Program, Federal Trade Commission, February 25, 1998
7. ^ Federal Trade Commission Funeral Rule - 16 CFR Part 453
8. ^ Congressional Press Release on Rising Gas & Energy Prices

External links

• Federal Trade Commission Home Page
• Consumer Complaint Assistant, Federal Trade Commission
• Federal Trade Commission Decisions (July 1949 - December 2005) This is a compendium of agency decisions in administrative cases brought under 16 C.F.R. parts II and III. Federal court decisions may be found elsewhere, in published federal case reports. The site's search engine can limit its results from the archive.
• Federal Trade Commission Meeting Notices and Rule Changes from The Federal Register RSS Feed
• Federal Trade Commission Identity Theft Complaint Form

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