Federal Trade Commission
From Free net encyclopedia
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 contemporaneous antitrust statute. Over time, the FTC has been delegated the enforcement of additional business regulation statutes.
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Organization of the Federal Trade Commission
The FTC is headed by five Commissioners. Day-to-day operations are run by the Office of the Executive Director. Three bureaus carry out the FTC's substantive work: the Bureau of Consumer Protection, the Bureau of Competition, and the Bureau of Economics. Additional arms of the FTC lend further support to its work. The Office of General Counsel advises the Commission on legal matters and represents the Commission in court. The Office of Administrative Law Judges furnishes the officials who adjudicate administrative proceedings at the FTC. The Regional Offices serve as the investigatory organs of the FTC.
Federal Trade Commissioners
The Federal Trade Commmission is headed by five Commissioners who are nominated by the President and confirmed by the Senate. 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).
Bureau of Consumer Protection
The Bureau of Consumer Protection’s mandate is to protect consumers against unfair, deceptive or fraudulent practices. It enforces both federal law related to consumer affairs and rules promulgated by the FTC. Its functions comprise investigations, enforcement actions, and consumer and business education. Areas of principal concern for this bureau are: advertising and marketing, financial products and practices, and privacy and identity protection. The bureau also is responsible for the United States National Do Not Call Registry.
Bureau of Competition
The Bureau of Competition is the division of the FTC charged with elimination and prevention of anticompetitve 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 is responsible for advising the FTC on the economic effects of its regulation of industry as well as government regulation of competition and consumer protection generally. Additionally, the bureau provides statistical analysis for use in enforcement proceedings.
Activities of the FTC
The FTC carries out its mission by investigating issues raised by reports from consumers and businesses, premerger notification filings, congressional inquiries, or reports in the media. 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. 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 1984 the FTC began to regulate the funeral service industry in order to protect consumers from deceptive practices such as "tying." A major regulation by the FTC in this area requires funeral homes to provide all customers (and potential customers) with a General Price List, specifically outlining goods and services in the funeral industry, as defined by the FTC, and a listing of their prices. By law, the General Price List must be presented to all individuals that ask, no one is to be denied a written, retainable copy of the GPL.
See also
- Brandeis Award, awarded annually by the FTC to "outstanding litigators"
- Business opportunity
- United States National Do Not Call Registry
- Competition law
- Competition policy
- Competition regulator
- Consumers' Association
- Consumer protection