What is the FTC Act and what does it prohibit?

The Federal Trade Commission Act, commonly referred to as the FTC Act, is a crucial piece of legislation that was enacted in 1914. It established the Federal Trade Commission, which is tasked with preventing business practices that are anticompetitive, deceptive, or unfair to consumers. The Act aims to promote fair competition and protect consumer interests in the marketplace. Under the FTC Act, various practices are prohibited. Primarily, the Act outlaws unfair or deceptive acts or practices in commerce. This includes false advertising, misleading representations, and any actions that could harm consumers or mislead them about products or services. The FTC also focuses on antitrust issues, working to prevent monopolistic behaviors and ensure that markets remain competitive. Moreover, the Act empowers the FTC to conduct investigations, hold hearings, and enforce compliance with its regulations. This enforcement can lead to penalties against companies that violate the Act, including cease-and-desist orders and fines. Overall, the FTC Act serves as a vital mechanism for upholding consumer rights and maintaining a healthy competitive environment in the United States. For further information, interested individuals may wish to look on the FTC's current web page for more details.