Federal Trade Commission Act Flashcards, test questions and answers

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What is Federal Trade Commission Act?

The Federal Trade Commission Act of 1914 is a United States federal law that serves to protect consumers from unfair or deceptive business practices. The act was passed in response to the rise of trusts, which were large businesses with monopolistic control over an industry or market. The aim of the act was to limit the power and influence of these trusts and ensure that companies compete fairly and openly for customers.The Federal Trade Commission Act established a commission to oversee the enforcement of antitrust laws, investigate possible violations, and forbid unfair methods of competition. Under this law, any person or corporation found guilty of such violations can be fined up to $5,000 per violation. Additionally, any person found guilty can be imprisoned for up to one year.The act also prohibits monopolization in specific industries as well as price discrimination between customers who are similarly situated (often referred to as price fixing). It also protects people from false advertising by requiring companies to disclose material facts about their products and services (such as ingredients used in food products). Furthermore, it requires those engaged in interstate commerce (commerce between two or more states) to obtain licenses from each state they wish do business in; this is known as the Robinson-Patman Act section of the FTCA. In recent years, the FTC has become increasingly active in regulating online media such as social networks like Facebook and Twitter; it has investigated issues ranging from consumer privacy protection policies to deceptive advertising claims made on these sites. The commission has also taken action against companies that have violated consumer rights by failing to provide adequate security measures for their websites or mobile applications. In 2016 alone, many tech giants like Apple Inc., Microsoft Corporation and Uber Technologies Inc were subject investigations by this agency for various reasons ranging from data privacy concerns related their customer’s personal information being shared without consent all the way through anti trust considerations like how Uber was using its pricing algorithms unfairly manipulate markets. Ultimately , these steps show how modern times require new approaches when protecting consumers i n an ever changing digital landscape. Overall ,the Federal Trade Commission Act serves an important role in safeguarding consumer rights , limiting unfair business practices ,and ensuring fair competition among companies for customer’s patronage. Without this legislation , we would not have so many protections available today regarding product safety standards , marketing claims & pricing strategies among other things .