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Simple English definitions for legal terms
Federal Trade Commission (FTC)
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A quick definition of Federal Trade Commission (FTC):
The Federal Trade Commission (FTC) is a group of people who work for the government to make sure that companies and people are being fair and honest when they sell things. They have different departments that help them do this, like one that protects consumers and another that makes sure companies are not cheating by being too competitive. The FTC can also punish companies that break the rules and teach people about their rights when they buy things.
A more thorough explanation:
The Federal Trade Commission (FTC) is an independent federal agency created in 1914 by the FTC Act. It is composed of five Commissioners appointed by the President and confirmed by the Senate. Each Commissioner serves a seven-year term. The Commission may not have more than three Commissioners belonging to the same political party. The FTC has a Bureau of Competition, a Bureau of Consumer Protection and a Bureau of Economics, and several other offices that support the activities performed by the FTC.
The FTC investigates natural persons or entities to prevent and impede unfair, deceptive, or fraudulent practices in the marketplace. For example, the FTC may impose penalties on a corporation for violating consumer’s privacy. The FTC also educates consumers and businesses about their rights and responsibilities under the law.
Example: The FTC may investigate a company that falsely advertises a product as being organic when it contains synthetic ingredients. This is an example of deceptive practices that the FTC aims to prevent.
The FTC enforces antitrust laws by preventing natural persons or entities from using unfair methods of competition or unfair or deceptive acts or practices that may affect commerce in the United States. For example, the FTC may challenge a merger that may have an anti-competitive effect on the relevant market.
Example: The FTC may investigate a merger between two large companies in the same industry that would create a monopoly and harm competition. This is an example of the FTC's role in promoting fair competition in the marketplace.
Federal Trade Commission | Federal Unemployment Tax Act (FUTA)