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Federal Trade Commission

The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction over federal civil antitrust law enforcement with the Department of Justice Antitrust Division. The agency is headquartered in the Federal Trade Commission Building in Washington, DC.

Agency overview

September 26, 1914 (1914-09-26)

1,123 (FY 2021)[1]

$311 million (FY 2019)[2]

The FTC was established in 1914 with the passage of the Federal Trade Commission Act, signed in response to the 19th-century monopolistic trust crisis. Since its inception, the FTC has enforced the provisions of the Clayton Act, a key antitrust statute, as well as the provisions of the FTC Act, 15 U.S.C. § 41 et seq. Over time, the FTC has been delegated with the enforcement of additional business regulation statutes and has promulgated a number of regulations (codified in Title 16 of the Code of Federal Regulations). The broad statutory authority granted to the FTC provides it with more surveillance and monitoring abilities than it actually uses.[5]: 571 


The FTC is composed of five commissioners, who each serve seven-year terms. Members of the commission are nominated by the President and subject to Senate confirmation, and no more than three FTC members can be of the same party. One member of the body serves as FTC Chair at the President's pleasure, with Commissioner Lina Khan having served as chair since June 2021.[6]

History[edit]

Early history[edit]

Following the Supreme Court decisions against Standard Oil and American Tobacco[7] in May 1911, the first version of a bill to establish a commission to regulate interstate trade was introduced on January 25, 1912, by Oklahoma congressman Dick Thompson Morgan. He would make the first speech on the House floor advocating its creation on February 21, 1912.


Though the initial bill did not pass, the questions of trusts and antitrust dominated the 1912 election.[8] Most political party platforms in 1912 endorsed the establishment of a federal trade commission with its regulatory powers placed in the hands of an administrative board, as an alternative to functions previously and necessarily exercised so slowly through the courts.[9][10]


With the 1912 presidential election decided in favor of the Democrats and Woodrow Wilson, Morgan reintroduced a slightly amended version of his bill during the April 1913 special session. The national debate culminated in Wilson's signing of the FTC Act on September 26, 1914, with additional tightening of regulations in the Clayton Antitrust Act three weeks later.


The new FTC would absorb the staff and duties of Bureau of Corporations, previously established under the Department of Commerce and Labor in 1903. The FTC could additionally challenge "unfair methods of competition" and enforce the Clayton Act's more specific prohibitions against certain price discrimination, vertical arrangements, interlocking directorates, and stock acquisitions.[8]

Recent history[edit]

In 1984,[11] the FTC began to regulate the funeral home industry in order to protect consumers from deceptive practices. The FTC Funeral Rule requires funeral homes to provide all customers (and potential customers) with a General Price List (GPL), specifically outlining goods and services in the funeral industry, as defined by the FTC, and a listing of their prices.[12] By law, the GPL must be presented on request to all individuals, and no one is to be denied a written, retainable copy of the GPL. In 1996, the FTC instituted the Funeral Rule Offenders Program (FROP), under which "funeral homes make a voluntary payment to the U.S. Treasury or appropriate state fund for an amount less than what would likely be sought if the Commission authorized filing a lawsuit for civil penalties. In addition, the funeral homes participate in the NFDA compliance program, which includes a review of the price lists, on-site training of the staff, and follow-up testing and certification on compliance with the Funeral Rule."[11]


In the mid-1990s, the FTC launched the fraud sweeps concept where the agency and its federal, state, and local partners filed simultaneous legal actions against multiple telemarketing fraud targets. The first sweeps operation was Project Telesweep[13] in July 1995 which cracked down on 100 business opportunity scams.


In the 2021 United States Supreme Court case, AMG Capital Management, LLC v. FTC, the Court found unanimously that the FTC did not have power under 15 U.S.C. § 53(b) of the FTC Act, amended in 1973, to seek equitable relief in courts; it had the power to seek only injunctive relief.[14]

Shortly after the U.S. Senate confirmed Lina Khan as a commissioner, President Biden tapped her to serve as Chair of the commission.

[16]

The FTC Act allows commissioners to remain in their position after their term expires until a replacement has been appointed.

The FTC maintains an Office of Technology Research and Investigation to assist it in technology-related enforcement actions.

[19]

The FTC generally selects its Chief Technologist from among computer science academics and noted practitioners. The role has previously been filled by Steven K. Bellovin, Lorrie Cranor, Edward Felten, Ashkan Soltani, and Latanya Sweeney.

[20]

The FTC also maintains an academic in residence program, inviting leading legal scholars to join the FTC for a year as a Senior Policy Advisor. The role has been held by in 2011,[21] Paul Ohm in 2012,[22] and Andrea M. Matwyshyn in 2014.[23]

Tim Wu

the placement of the disclosure in an advertisement and its proximity to the claim it is qualifying,

the prominence of the disclosure,

whether items in other parts of the advertisement distract attention from the disclosure,

whether the advertisement is so lengthy that the disclosure needs to be repeated,

whether disclosures in audio messages are presented in an adequate volume and cadence and visual disclosures appear for a sufficient duration, and

whether the language of the disclosure is understandable to the intended audience.

[30]

Winerman, Marc (2003). "The Origins of the FTC: Concentration, Cooperation, Control, and Competition". Antitrust Law Journal. 71 (1): 1–98.

Davis, G. Cullom (1962). "The Transformation of the Federal Trade Commission, 1914–1929". The Mississippi Valley Historical Review. 49 (3): 437–455. :10.2307/1902564. JSTOR 1902564.

doi

MacIntyre, A. Everette; Volhard, Joachim J. (1970). . Boston College Law Review. 11 (4): 723–783.

"The Federal Trade Commission"

MacLean, Elizabeth Kimball (July 2007). "Joseph E. Davies: The Wisconsin Idea and the Origins of the Federal Trade Commission". Journal of the Gilded Age and Progressive Era. 6 (3): 248–284. :10.1017/S1537781400002097. S2CID 161773580.

doi

Official website

website of the FTC

Report fraud

in the Federal Register

Federal Trade Commission

of the Code of Federal Regulations from the LII

16 CFR Chapter I

of the Code of Federal Regulations from the OFR

16 CFR Chapter I

volumes 1-128 archive from HathiTrust

FTC Decisions

on USAspending.gov

Federal Trade Commission