Explain the  Federal Trade Commission and give example.

The Federal Trade Commission (FTC) is a government-run independent agency of the United States federal government. Established in 1914, the FTC’s area of oversight covers most forms of commercial or business activity and works to protect consumers from unfair or deceptive practices by businesses. The FTC also regulates national advertising campaigns which may include television, radio, internet, newspaper and magazine ads as well as other marketing materials such as flyers, brochures and mailers.

The FTC has several primary functions that it uses to ensure fair trade practices occur across all industry sectors: enforcement of existing laws, enforcement investigations for violations against the law, education about consumer rights and protection for those who are victims of scams or frauds. Through its enforcement efforts, the Commission seeks civil penalties from entities found in violation of the laws it enforces; collects refunds on behalf of consumers who have been harmed financially; oversees mergers between organizations; and issues regulations concerning new technologies such as online privacy.

For example if a company advertises falsely claiming their product can cure cancer they could be fined by the FTC for misleading consumers through false advertisement. Another example would be if two companies plan on merging together but it will give them too much market power resulting in anti-competitive behavior then they could be investigated by the FTC to make sure that this merger doesn’t take place.

The FCT also investigates common scams like pyramid schemes where companies try to get people to invest money with them with promises of high returns but have no real products or services being exchanged making it illegal under US law. Companies found guilty get fined heavily by the FTC for violating these laws. The Commission also provides educational resources for consumers including how to spot potential scams and how to file complaints against fraudulent companies when necessary.