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Federal Trade Commission Act Passed

Safe Web Act 19469 KB: Exploring the Federal Trade Commission Act

Understanding the Federal Trade Commission Act

The Federal Trade Commission Act (FTCA), enacted in 1914, is a foundational statute that empowers the Federal Trade Commission (FTC). This legislation serves as the primary authority for the FTC to regulate unfair business practices, consumer protection, and antitrust issues.

Key Provisions of the FTCA

The FTCA grants the FTC broad authority to investigate and prosecute deceptive or unfair trade practices. The statute includes provisions that:
  • Prohibit deceptive advertising and labeling
  • Prevent unfair or deceptive competition
  • Authorize the FTC to issue cease-and-desist orders against violators
  • Empower the FTC to seek civil penalties and injunctive relief

Historical Background of the FTCA

The FTCA emerged during the progressive era, when concerns grew over unethical business practices and the need for consumer protection. The legislation aimed to create a regulatory body to enforce fair trade laws and protect consumers from fraud and deception.

Modern Relevance of the FTCA

Today, the FTCA remains a vital tool for the FTC to address evolving business practices and protect consumers in a rapidly changing digital environment. With the rise of e-commerce, social media marketing, and data privacy concerns, the FTCA provides the FTC with the authority to investigate and prosecute practices that harm consumers.


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