Figure 10.6
Although administrative agencies have a great deal of power, they are bound by the concept of
due process at is described in the U.S. Constitution. (Credit: wynpnt/ pixabay/ License: CC0)
Agency Structure
Administrative agencies are made up of experts, and they are trusted by Congress to identify the agency
structure that best serves their specific goals. Thus, each agency is structured differently.
The FTC is a well-known agency and is organized into bureaus. Each bureau is focused on an agency goal. The
three bureaus are consumer protection, competition, and economics. The Bureau of Consumer Protection
focuses on unfair and deceptive business practices by encouraging consumers to voice complaints,
investigate, and file lawsuits against companies. It also develops rules to maintain fair practices and educates
consumers and businesses about rights and responsibilities. The Bureau of Competition focuses on antitrust
laws and, by doing so, supports lower prices and choices for the consumer. And, lastly, the Bureau of
Economics concentrates on consumer protection investigation, rulemaking, and the economic impact of
government regulations on businesses and consumers.
Administrative Procedure Act (APA)
These agencies are not unrestrained in their operations. First, there are due process requirements created in
the Constitution. Rules must be reasonable and based on facts. Second, rules cannot violate anyone’s
constitutional rights or civil liberties. Third, there must be an opportunity for the public to voice its support, or
lack of support, for a rule. In 1946, the Administrative Procedure Act (APA) was enacted. Under the APA,
agencies must follow certain procedures to make their rules enforceable statutes. The Act set up a full system
for the execution of administrative law by administrative agencies for the federal government. Although
agencies have power, government agencies must still act within the structures in place, including the
Constitution, span of authority, statutory limitations, and other restrictions. The APA outlines roles, powers,
and procedures of agencies. It organizes administrative functions into rulemaking and adjudication.
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