What is the federal trade commission act (ftca)?

The Federal Trade Commission Act prevents unfair competition methods and unfair or deceptive acts that may affect business commerce. Violation of the FTCA are usually proven by showing bad faith, fraud, oppression, or a violation of public policy. Only the The Federal Trade Commision can enforce the FTCA.

Many States have also enacted antitrust laws in addition to the FTC regulations to prevent restraints on competition. The Federal laws apply to interstate and foreign commerce while the state laws apply to activities taking place within the state borders. Congress passed the Federal Trade Commission Act to protect consumers from unfair methods of competition.

These unfair or deceptive methods by a business need only to have the possible likelihood of deceiving the consumer. The law does not require that an actual deception take place. A business may also be liable for the unfair and deceptive acts of its employees, agents, or representatives.

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