Question

please fully explain the purpose of the Federal Trade Commission (FTC). Also, explain some of the methods used to enforce the commission's authority. Also, give five examples when the FTC will take action

Answer 1

FEDERAL TRADE COMMISSION

It is independent agency under the united states government entrusted with duty of protecting consumers and enforcement of US anti trust laws.

PURPOSE OF FTC

The major pupose of the commission is the enforcement of the FEDERAL TRADE COMMISSION ACT which prohibits deceptive acts or practices in commerece.FTC is also entrusted to act against specific and unfair monopolistic practices.

LAW ENFORCEMENT BY FTC

The basic statute enforced by the FTC are investigate and take action against unfair and deceptive practices in the market,in short the two primary missions of the agency are protecting consumer and protecting competition.

FTC enforce law by

1. Investigating and preventive unfair market practices
2. Agency has federal rule making authority to issue industry wide regulations
3. FTC is also endowed eith powers to hold trials in cases under their jurisdiction

WHEN WILL FTC TAKE ACTION

FTC takes action when-

1. there is any practices challenging the market competition and will lead to monopoly like 2 exceptionally successfull firms merging FOR EXAMPLE-AMAZON MERGES WITH WALMART
2. Stock frauds
3. decepting the consumer and cheating him FOR EXAMPLE-CHEATING A CONSUMER BY SAYING THAT A DRINK CAN ENHANCE YOU HEALTH BUT IN REALITY IT DOES NOT AND IN MANY WAYS HURTS HEALTH
4. telemarketing sale rules violation
5. Identity theft