Jason Thompson

Federal Trade Commission

An independent agency of the United States,

Its principle mission is the promotion of consumer protection and the elimination and preservation of what seems to be harmfully anti-competitive business practices.

FTC Creation

The FTCs creation was one of Woodrow Wilsons major acts against trusts, established September 26, 1914. This time In America was considered the Progressive era and it was vital the govt. mage regulations and restrictions to the giants trying to dominate an industry and start monopolies. Overtime the FTC has been delegated the enforcement of additional business regulation statutes and created numerous acts.

Functions/Actions

Primary goal of the FTC is to protect consumers and the people from unjust selfish acts of businesses. It investigates issues raised by consumers, businesses, premerger filings, congressional inquiries, or even the media. It focuses primarily on stopping false advertising, fraud, and price fixing.

Unlawful Conduct

Investigations by the FTC may include just a single company or pertain to an entire industry. If the investigation proves to be unlawful conduct the FTC can:

Consent Decree Agreement between parties to withdraw any criminal charges. Administrative Complaint A lawsuit by the FTC staff. Federal Litigation Criminal charges to the people involved.

Trusts

A trust is a business entity formed to monopolize business, to restrain trade, or too fix prices.

19th and 20th centuries Dividend paying certificates

Antitrust Laws
Competition Law

Law that promotes or maintains market competition by regulating anti-competitive conduct by businesses. Bureau of Competition Actions

FTC and Mergers

The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. Come with plenty of benefits, but pose the largest threat. Regulations involved vertical and horizontal. FTC must decide whether the acquisitions will be beneficial or destructive. Over a thousand merger filings per year, and 95% deemed beneficial.

Role of Ethics

Based off ethics Primary factor of decision making Common wealth of the people

Cost and Funding

In 2009 the FTC was recieiving 273 million. Obama increased total budget of FTC in 2010 to 287.2 million. 168 million for consumer protection, and 119 million for antitrust enforcement.

Case Example

In the Gateway Learning Corp. the FTC alleged that Gateway committed unfair and deceptive trade practices by making retroactive changes to its privacy policy without informing customers and by violating its own privacy policy by selling customer information when it had said it would not. Gateway settled the complaint by entering into a consent decree with the FTC that required it to surrender some profits and placed restrictions upon Gateway for the following 20 years.

Case Example

In F.T.C. v. Cyberspace.com the FTC found that sending consumers mail that appeared to be a check for $3.50 to the consumer attached to an invoice was deceptive when cashing the check constituted an agreement to pay a monthly fee for internet access. The back of the check, in fine print, disclosed the existence of this agreement to the consumer. The FTC concluded that the practice was misleading to reasonable consumers, especially since there was evidence that less than one percent of the 225,000 individuals and businesses billed for the internet service actually logged on.

Federal Trade Commission

History or roots of this concept Overall significance to the U.S. Knowledge gained