...The Federal Trade Commission (FTC) is a valuable entity of our government. But what is the FTC? What does the FTC do? What are the primary areas that the FTC is Responsible for? The Federal Trade Commission (FTC) is an independent federal regulatory agency charged with the responsibility of promoting fair competition among rivals in the marketplace by preventing unfair and deceptive trade practices and restraining the growth of monopolies that tend to lessen free trade. The Federal Trade Commission (FTC) main mission is to protect consumers and businesses from unfair competition. This became possible when they passed the Federal Commission Act of 1914. This act prohibits unfair methods of competition (Thomas D, Ferrell O.C., & Ferrell L. pg 134) The FTC's functions include: they Promote competition through the prevention of general trade restraints such as price-fixing agreements, boycotts, illegal combinations of competitors, and other unfair methods of competition. Stopping corporate mergers, acquisitions, or joint ventures that substantially lessen competition or tend to create a Monopoly. They prevent interlocking directorates that may restrain competition. They prevent the dissemination of false or deceptive advertisements of consumer products and services. They make sure that the truthful products we buy have the proper labels that are truthful to what they contain. They promote electronic commerce and try to stop fraud on the Internet and develop policies that safeguard...
Words: 446 - Pages: 2
...Artemiy Andreev Ms.Brown February 15, 2016 The Federal Trade Commission Research The Federal trade commission or called the FTC was created in 1914. The Federal Trade Commission Act is the act that started this commission and its purpose was to prevent unfair methods of competition in commerce as a part of the battle to “bust the trusts.” They also did this act to enhance the informed consumer choice and public understanding of this competitive process; and another reason was to accomplish this without the unduly burdening of legitimate business activity. The FTC deals with issues that do with the touchline of pretty much every American in the USA. These guys from the Federal Trade commission do an awesome job of saving and protecting the rights of american consumers, whether it was a purchase of production made by someone like for example milk, or it is a service of some action that is provided in exchange for money , an example of this would be barbershop services. One of the main objectives for the federal trade commission is to oppose the creation of monopolies in the economy and trusts. The FTC makes sure that there is fair and healthy competition. Because it is one of the main factors for businesses to grow and introduce or provide better products and services. The FTC has been one of the main federal agencies on privacy policy and on enforcement since the 70’s. First it really began with the execution of one of the main laws - the Fair Credit Reporting Act...
Words: 640 - Pages: 3
...Concept of the Federal Trade Commission Concept of the Federal Trade Commission Kenneth Hunter Grantham University Abstract What is the concept of the federal trade commission? How do they help us in our everyday economic planning? Is the federal trade commission the reason for businesses being more customer orientated? Can this will design federal government section keep big businesses in check or will small business be left for the taking. How is the federal trade commission broken to oversee the companies and how these laws are being kept? Why is this so important to the American people? This section of the American is like the godfather of business protection and keeper of guidelines. This area is cornerstone of ensuring a balance to the business world as we know today. You have to ask yourself without them would the economic be safe? Current Mission Let’s take a look at the current mission of the Federal Trade Commission as we know today. As a consumer or business person, you may be more familiar with the work of the Federal Trade Commission than you think. The FTC deals with issues that touch the economic life of every American. It is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy. The FTC pursues vigorous and effective law enforcement; advances consumers’ interests by sharing its expertise with federal and state legislatures and U.S. and international government agencies; develops...
Words: 867 - Pages: 4
...Week 3: Case Study HCA642 Healthcare Policy, Law, and Ethics Issue The Federal Trade Commission (FTC) and the State of Missouri are seeking a preliminary injunction under section 13(b) of the Federal Trade Commission Act (FTC Act), 15 U.S.C. Section 53(b), which “authorizes the Commission to seek preliminary and permanent injunctions to remedy any provision of law enforced by the Federal Trade Commission. Under the first proviso of Section 13(b), whenever the Commission has ‘reason to believe’ that any party ‘is violating, or is about to violate’ a provision of law enforced by the Commission, the Commission may ask the district court to enjoin the allegedly unlawful conduct, pending completion of an FTC administrative proceeding to determine whether the conduct is unlawful. Further, under the second proviso of Section 13(b), ‘in proper cases’, the Commission may seek, and the court may grant, a permanent injunction” (www.ftc.gov). This particular injunction is meant to refrain the enjoining of the merger of two commercial hospitals in Poplar Bluff, Missouri. Lucy Lee Hospital wishes to purchase Doctors Regional Medical Center (DRMC). In this case, the plaintiffs, FTC and State of Missouri, argue that the proposed merger would considerably lessen the competition between other acute care hospitals in the Poplar Bluff area (https://scholar.google.com/scholar_case). The question stands: is the proposed merger between Lucy Lee Hospital and DRMC a violation of the Clayton Anti-Trust...
Words: 1051 - Pages: 5
...Industrial regulation is a set of policies and restrictions created to limit the power of monopolies and simultaneously protect consumers. Industrial regulation exists because left unchecked, large trusts or corporations can control markets and prices in ways that unfairly hurt consumers. Industrial regulation affects markets by limiting business practices of firms and ensuring that ample competition exists. The entities that are most affected by industrial regulation would be natural monopolies and firms considered part of an oligopoly. Firms fitting those descriptions can find their price and production outputs being monitored and controlled by governments or public agencies through public ownership or public regulation. The purpose of those regulations is typically to ensure that fair output and prices are being observed that protect the consumer while simultaneously allowing for the controlled firm to maintain a profit. Social regulation relates to the impact of businesses on consumers, workers, the environment, and other interests not specifically tied to business output, prices, and profits. This can be the physical qualities of the goods produced, the conditions under which production occurs, and the impact of production on society. Social regulation exists to increase economic efficiency and society’s well-being by: removing unsafe products; improving working conditions and safety; decreasing economic discrimination; and reducing pollution. Social regulation is very broad...
Words: 970 - Pages: 4
...unethical and demoralized behavior, the effectiveness of laws put into place to encourage us to practice socially responsible behavior will not be effective. When the needs of the many supersedes the needs of the few, only then will these laws, policies and procedures put in place to encourage socially responsible behavior being to have any real effect. The Federal Trade Commission (FTC) enforces federal consumer protection laws that prevent fraud, deception and unfair business practices. The Commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that could lead to higher prices, fewer choices, or less innovation. The Commission has enforcement or administrative responsibilities under more than 70 laws. They are grouped in three categories: (a) Statutes relating to both the competition and consumer protection missions; (b) statutes relating principally to the competition mission; and (c) statutes relating principally to the consumer protection mission. The Federal Trade Commission Act is the primary statute of the Commission. Under this Act, the Commission is empowered, among other things, to (a) prevent unfair methods of competition, and unfair or deceptive acts or practices in or...
Words: 930 - Pages: 4
...Bait and Switch Richard Sacks Strayer University LEG 500 – Law, Ethics, and Corporate Governance Professor: Dr. Michael T. Hanners [ November 4, 2010 ] Abstract This paper explores the relationship between the advertiser and the consumer as it relates to advertising and communications law and bait and switch. The publications all agree with their definitions and uses of advertising and communications law and bait and switch. The Advertiser is required to follow the advertising and communications law. Bait advertising is created to allure a consumer to an insincere offer to purchase a product or service which the advertiser does not intend to sell or want to sell. The purpose of bait advertising is to switch a consumer from buying the advertised product or service, in order to sell that consumer another product or service that usually is a higher price or is more advantageous to the advertiser. The scenario that has been presented, demonstrates how the advertiser, the car dealership advertised a truck that possible was unavailable, that resulted in alluring the consumer, Betty, to the dealership in order to purchase that vehicle. The switch occurs when Tony, the salesperson of the advertiser, tried everything not to sell her that truck in order to sell that consumer another product or service that usually is a higher price or is more advantageous to the advertiser. This is an ideal case of Bait and Switch. Betty drove three hours in one-hundred degree heat....
Words: 1497 - Pages: 6
...QUESTIONS A1. Through unfair trade practices, Super Sales Company induces Trey and other consumers to enter into one-sided deals. This may be subject to sanctions under a. federal and state law. b. federal law only. c. no law, according to the principles of freedom to contract. d. state law only. ANSWER: A PAGE: 905 TYPE: N NAT: AACSB Reflective AICPA Legal B1. Through careless manufacturing practices, Insta-Market Company makes and sells unsafe products to Jess and other consumers. This may be subject to sanctions under a. federal and state law. b. federal law only. c. no law, according to the principles of freedom to contract. d. state law only. ANSWER: A PAGE: 905 TYPE: N NAT: AACSB Reflective AICPA Legal A2. Frosty’s Appliance Store advertises freezers at a “Special Low Price of $299.” When Garth tries to buy one of the freezers, Huey, the salesperson, tells him that they are all sold and no more are obtainable. Huey adds that Frosty’s has other freezers for $2,299. This is a. a legitimate sales technique. b. bait-and-switch advertising. c. counteradvertising. d. puffery. ANSWER: B PAGE: 906 TYPE: = NAT: AACSB Reflective AICPA Legal B2. Orange Company makes computers. The company’s ad states that “if you aren’t eatin’ an Orange, you aren’t gettin’ any ‘C.” ” The Federal Trade Commission would consider this ad ...
Words: 2657 - Pages: 11
...Assignment 4 Law, Ethics, and Corporate Governance (LEG 500) November 23, 2011 by clicking on the link in the course shell. There is also a link that will allow you to print the script of the video. Betty drove three hours in one hundred degree heat. Explain if this fact has any bearing on whether or not the dealer must perform in accordance with the published advertisement. The statutes responsible of regulate advertisements are the Federal Trade Commission (FTC) and the Lanham Act, and these are the ones whose can determinate the issue whether the customer has the right to claim the published advertisement since the fact that she drove many hours in uncomfortable conditions to the dealer expecting to buy the product advertised. The FTC is in charge to protect consumers from false or misleading advertising. The Lanham Act is a series of laws regulating trademark registration and protection. In this case, the fact that Betty drove three hours in one-hundred degree heat is not regulate in the FTC neither in the Lanham Act, therefore, it has no relevance to the dealer. The dealers need not to take care about the difficulties the people face on reaching the venue given in the advertisement. The people who read the advertisement must make sure that the advertisement meets the requirements that they are interested in. Whenever an advertisement is published, numerous people may contact the advertiser. If the advertiser will start taking care of the sufferings and...
Words: 2048 - Pages: 9
...Regulation and Law Business is something that is done day after day all over the country. It doesn’t matter if it’s someone buying a cup of coffee or an individual buying a new car, business should be fair for anyone and everyone. In order for business to be fair, the antitrust laws were made. Antitrust laws are the efforts to make businesses compete fair for everyone who is involved no matter what the business may be by the federal government. Antitrust laws help regulate trade and business by preventing price-fixing, monopolies, and unlawful restraints. This allows consumers and other business to not be taken advantage of while conducting fair ways of business. It also helps to promote the quality of goods and services while helping guarantee that customer demands are met by manufacturers. The four pieces of legislation are known as the Antitrust Laws which first consist of the Sherman Antitrust Act. The Sherman Antitrust Act focused on the hindrance and restraint of trade among states or and different countries while also working to prevent monopolies within different businesses. These violations come with heavy consequences and will be handled in an important way. If individuals who are suspected of violating this act end up being prosecuted, they can only be done so by the United States Department of Justice. Then there is the Celler-Kefauver Act of 1950 which focuses on some important details. One was to limit mergers that would result in a drop competition within a...
Words: 1671 - Pages: 7
...Human Resource Management Human Resource Management Human Resource Management (HRM) is defined as “the function within an organization that focuses Federal Trade Commission The Federal Trade Commission was chosen as a source because it is a federal entity that was established in 1914 to protect America’s consumers and has been serving the public for nearly 100 years (Federal Trade Commission). The Federal Trade Commission website was examined using the CARS (Credibility, Accuracy, Reasonableness, Support) test. The credibility of this site is shown by the reliable contact information such as the list of offices/bureaus, address, and phone numbers. The Federal Trade Commission’s reputation is proven reputable by nearly 100 years in service. The quality control of the site is shown through the Data Quality Act which provides the “Guidelines for ensuring and maximizing the Quality Objectivity, Utility, and Integrity of information disseminated by the Federal Trade Commission” (Federal Trade Commission), the publication of its federal rule making authority in Title 16 of the Code of Federal Regulations, and the Commission’s semiannual Regulatory Agenda and annual Regulatory Plan. This site is held accountable for its information through the publication of reports such as the Performance and Accountability Report and the Performance and Accountability Summary which is a Citizen’s Report. The accuracy of this site is shown by the up-to-date, comprehensive information...
Words: 668 - Pages: 3
...competition that may stand in the way of success. The key to climbing to the top of market and taking out the competition is by standing within the guidelines, rules, and regulation of the law. The Federal Trade Commissions also known as the FTC are the ones responsible and in charge of upholding and enforcing fair business practices that essential protect those entering in the free market. According to the FTC website the Unfair Business Practice Act was passed by Congress in 1914 and has since been amended multiple times to protect consumers and business from unfair practices and unfair competition. (Unfair and Deceptive Practices) These laws ensure and protect consumers ensuring that businesses don't push out their competition with unfair practices such as false advertisement or shooting up the price of goods. The main two categories these unfair competitive business laws fall within and protect these businesses from being taken advantage of in such a competitive market would be pricing laws and advertising laws. Protecting Business from Unfair Pricing Practices Legislators sole purpose is to enforce and pass laws that ensure a positive competitive atmosphere among businesses to uphold these laws they were assigned to the commission whose sole job is to compute a list of unfair trade practices that would not become outdated or leave any loopholes for invasion now and in the years to come. According to the FTC website in a policy statement...
Words: 1130 - Pages: 5
...Deceptive Trade Practices: An Introduction a. What it is b. Who is affected c. The impact on individuals and society d. Solution(s) to the problem: to regulate or not to regulate What are “Deceptive Trade Practices”? Whenever a business or an individual engages in activity that is likely to mislead the public may be considered a “deceptive trade practice”. Deceptive trade practices are prohibited due to the negative effects they have on consumers and the general public. When a person or a firm is involved in a business which misguides the people can be regarded as deceptive trade practice. It is illegal because it has various harmful impacts on the consumers. Federal and state laws prohibit the use of deceptive trade practices. The Uniform Deceptive Trade Practices Act (UDTPA) is an example of federal legislation that regulates deceptive trade practices. All states have adopted some form of the Act in their own statutes. The Federal Trade Commission Actalso governs deceptive trade practices. Not only federal laws but also the state laws disallow any kind of deceptive trade practices. UDTPA or Uniform Deceptive Trade Practices Act can be seen as an instance of federal laws. The act has been adopted by the different states in different forms in their respective statutes. The Federal Commission Act (FCT) also regulates deceptive trade practices. Deceptive trade practice laws cover a very wide range of business aspects, including trade &...
Words: 834 - Pages: 4
...GLBA Summary The Gramm-Leach-Bliley Act (GLBA), also known as the Financial Modernization Act of 1999, is a federal law enacted in the United States to control the ways that financial institutions deal with the private information of individuals. GLBA consist of three sections, the financial privacy rule, the safeguard rule, and the pretexting provisions. Written privacy notices that explain their information-sharing practices are required to be given to customers. The financial privacy rule regulates the collection and disclosure of private financial information. The financial institute which is any company that provides financial products or services to individuals must protect information collected about individuals; it does not apply to information collected in business or commercial activities. The company is required to give customers a privacy notice as needed or yearly. Consumers are only given the notice if the company shares the consumers' information with companies not affiliated with it. The privacy notice must be given in mail form or in person and must be a clear, conspicuous, and accurate statement of the company's privacy practices. The notice applies to the nonpublic personal information (NPI). The customer has the option to Opt-Out of the company sharing their information to third parties. It must be stated clearly how they can do that. The safeguards rule states that financial institutions must implement security programs to protect...
Words: 482 - Pages: 2
...Assignment # 4: Bait and Switch [pic] Law, Ethics, and Corporate Governance 1. Betty drove three hours in one-hundred degree heat. Explain if this fact has any bearing on whether or not the dealer must perform in accordance with the published advertisement. The fact that Betty drove three hours in one hundred degree heat may not necessarily have any bearing on whether or not the dealer must perform in accordance with the published advertisement. However, the dealer has a duty to perform in accordance with the published advertisement. According to the Federal Trade Commission (FTC),” advertising must be truthful and non-deceptive, must have evidence to back up their claims, and cannot be unfair ("Advertising: a guide for," 2001).” In other words, the advertisement must be a factual representation of services or goods being advertised. On the surface, it appears that the car dealer is involved in a bait and switch transaction which is illegal. Bait and switch is an illegal tactic in which a seller advertises a product with the intention of persuading customers to purchase a more expensive product ("Bait and switch," 2011). When a seller uses this tactic, they frequently tell the customer that the original product is sold out or no longer available (even if the product is indeed still available), and push hard for the customer to purchase the costlier product. This tactic can be considered false advertising if the seller is not actually...
Words: 1032 - Pages: 5
