Federal Trade Commission

What purpose does the Federal Trade Commission serve and why must business owners be educated on Federal Trade Commission practices?
Consider 1 of the following sections of the Federal Trade Commission Act:
Deceptive Advertising
Labeling and Packaging Laws
Sales

Regarding the section you chose, provide an example of when a deceptive practice has been used in business and the consequence(s) for the deceptive practice.

Sample Solution

The Federal Trade Commission (FTC) is an independent federal agency that was founded in 1914 with the mission of protecting consumers and promoting competition. The FTC works to protect consumers by preventing unfair, deceptive or fraudulent business practices. It also enforces antitrust laws that prohibit anti-competitive mergers, acquisitions and other conduct by businesses. Business owners must be educated on Federal Trade Commission practices because it is important for them to understand their legal obligations and responsibilities regarding consumer protection laws. This knowledge can help them avoid costly fines or legal action brought against their businesses for violation of FTC regulations.

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