The Federal Trade Commission (FTC) plays a critical role in the U.S. economy. Its mission is protecting the public from deceptive or unfair business practices and from unfair methods of competition through law enforcement, advocacy, research, and education. This article provides an in-depth look at what the FTC is, its responsibilities, and how it impacts consumers and businesses.
The FTC envisions a vibrant economy fueled by fair competition and an empowered, informed public. To achieve this, the FTC focuses on several strategic goals. These include protecting the public from unfair or deceptive acts or practices in the marketplace, safeguarding the public from unfair methods of competition, promoting fair competition, and advancing the FTC’s effectiveness and performance.
The FTC’s Role in Protecting Consumers
As a consumer, you benefit from the FTC’s work more than you might realize. The FTC addresses issues that touch the economic lives of every American, from preventing scams to ensuring fair competition among businesses.
Alt text: The Federal Trade Commission (FTC) headquarters building, showcasing the agency’s official seal.
The FTC is the only federal agency with both consumer protection and competition jurisdiction across broad sectors of the economy. It enforces laws, shares expertise with federal and state legislatures and U.S. and international government agencies, develops policy and research tools through hearings, workshops, and conferences, and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies.
Key Bureaus and Offices Within the FTC
The FTC’s work is divided among several bureaus and offices:
- Bureau of Consumer Protection: Focuses on protecting consumers from fraud, deception, and unfair business practices.
- Bureau of Competition: Works to promote competition and prevent anticompetitive mergers and business practices.
- Bureau of Economics: Provides economic analysis to support the FTC’s law enforcement and policy initiatives.
- Office of General Counsel: Provides legal advice and support to the FTC.
- Regional Offices: Eight regional offices across the country assist with investigations and outreach.
Alt text: The FTC seal, representing the agency’s commitment to consumer protection and fair competition.
A Brief History of the Federal Trade Commission
The FTC was created in 1914 to prevent unfair methods of competition in commerce as part of the effort to “bust the trusts.” Over the years, Congress passed additional laws giving the agency greater authority to police anticompetitive practices. In 1938, Congress passed a broad prohibition against “unfair and deceptive acts or practices.”
Since then, the FTC has been directed to administer a wide variety of other consumer protection laws, including the Telemarketing Sales Rule, the Pay-Per-Call Rule, and the Equal Credit Opportunity Act. In 1975, Congress gave the FTC the authority to adopt industry-wide trade regulation rules. This evolution has allowed the FTC to adapt to changing market conditions and continue its mission of protecting consumers and promoting competition.
Common Scams and How the FTC Can Help
The FTC is vigilant in combating scams and fraudulent activities. It’s important to remember that the FTC will never demand money or personal information from you. If you have been targeted by an illegal business practice or scam, report it at ReportFraud.ftc.gov. Reporting helps the FTC track trends and take action against scammers.
Alt text: Image promoting the FTC’s ReportFraud.ftc.gov website, urging consumers to report instances of fraud and scams.
The FTC’s Ongoing Commitment
The Federal Trade Commission remains dedicated to its mission of protecting consumers and promoting competition in the marketplace. By understanding the FTC’s role and reporting fraudulent activities, both consumers and businesses can contribute to a fairer and more transparent economy. The FTC’s work is vital in ensuring that the marketplace operates with integrity and that consumers are empowered to make informed decisions.
