Bureau of Competition
The Bureau of Competition’s purpose is to eliminate and prevent “anticompetitive” business practices related
to the enforcement of antitrust laws. The FTC and the Department of Justice share responsibility for
enforcement of antitrust laws.
Bureau of Economics
The Bureau of Economics supports the Bureau of Competition and Bureau of Consumer Protection by
providing subject matter expertise regarding the economic impacts of FTC legislative activity.
FTC Activities
The FTC investigates issues raised through a number of sources, including consumer, business, and media
reports. If the FTC concludes that there was unlawful conduct, it may seek several forms of recourse. These
include the pursuit of voluntary compliance through a consent order, the submission and filing of
administrative complaints, or the initiation of a federal action and litigation.
The FTC has the power to create rules regarding widespread industry practices. Rules created in this fashion to
address systemic issues are called trade rules.
Assessment Questions
1. Define unfair trade practices.
2. All of the following are considered unfair trade practices except:
a.
Targeting vulnerable populations.
b.
Charging extremely high prices.
c.
False advertising.
d.
False representation of a good or service.
3. What is a bait and switch?
4. Describe the role of the Federal Trade Commission.
5. The following are examples of a company giving misleading price information except:
a.
Advertising “Limited Time Offer” when the offer is available forever.
b.
Advertising “Going Out of Business” when the company plans to stay in business.
c.
Advertising the product as “New” when the product is more than 6 months old.
d.
Advertising “Buy One, Get One” without informing consumers that they must buy another product or
service to get the deal.
Endnotes
The Consumer Protection Act: Unfair Trade Practices. Retrieved from: https://www.ftc.gov.bb/library/
2003-06-13_unfair_trade_practices.pdf.
Lumen Learning. (n.d.). Business and the Legal Environment. Retrieved from:
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Chapter 12 Unfair Trade Practices and the Federal Trade Commission
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