Federal Trade Commission

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The Federal Trade Commission (or 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 anticompetitive business practices.

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. § 40 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).

1 Organization of the Federal Trade Commission
2 Activities of the FTC
3 Bibliography
4 See also
5 External links

[edit] Organization of the Federal Trade Commission

[edit] FTC Chairmen and Commissioners

The Federal Trade Commission is headed by five Commissioners who are nominated by the President and confirmed by the 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 at most 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 named).

[edit] Bureau of Consumer Protection

The Bureau of Consumer Protection’s mandate is to protect consumers against unfair or deceptive 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.

[edit] 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.

The current director of the Bureau of Competition is Jeffrey Schmidt.

[edit] Activities of the FTC

The FTC carries out (parties) 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. 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 Regulation 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 [1] in July 1995 which cracked down on 100 business opportunity scams.

In 1988, the FTC began to regulate the funeral service 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. 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.

[edit] Bibliography

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. in JSTOR