Editing Federal Trade Commission (section)

== Activities ==
{{One source|date=August 2024|section}}{{Competition law}}
The FTC investigates issues raised by reports from consumers and businesses, pre-merger notification filings, congressional inquiries, or reports in the [[mass media|media]]. These issues include, for instance, [[false advertising]] and other forms of [[fraud]]. FTC investigations may pertain to a single company or an entire industry. If the results of the investigation reveal unlawful conduct, the FTC may seek voluntary compliance by the offending business through a [[consent judgment|consent order]], file an administrative complaint, or initiate federal litigation. During the course of regulatory activities, the FTC is authorized to collect records, but not on-site inspections.<ref>{{Cite journal|last=Van Loo|first=Rory|date=2018-08-01|title=Regulatory Monitors: Policing Firms in the Compliance Era|url=https://scholarship.law.bu.edu/faculty_scholarship/265|journal=Faculty Scholarship|volume=119 |issue=2 |page=369 }}</ref>

Traditionally an administrative complaint is heard in front of an independent administrative law judge (ALJ) with FTC staff acting as prosecutors. The case is reviewed ''de novo'' by the full FTC commission which then may be appealed to the U.S. Court of Appeals and finally to the Supreme Court.{{Citation needed|date=August 2024}}

Under the FTC Act, the federal courts retain their traditional authority to issue [[equitable relief]], including the appointment of receivers, monitors, the imposition of asset freezes to guard against the spoliation of funds, immediate access to business premises to preserve evidence, and other relief including financial disclosures and expedited discovery. In numerous cases, the FTC employs this authority to combat serious consumer deception or fraud. Additionally, the FTC has [[rulemaking]] power to address concerns regarding industry-wide practices. Rules promulgated under this authority are known as ''Trade Rules''.{{Citation needed|date=August 2024}}

One of the Federal Trade Commission's other major focuses is [[identity theft]]. The FTC serves as a federal repository for individual consumer complaints regarding identity theft. Even though the FTC does not resolve individual complaints, it does use the aggregated information to determine where federal action might be taken. The complaint form is available online or by phone (1-877-ID-THEFT).{{Citation needed|date=August 2024}}

The FTC has been involved in the oversight of the online advertising industry and its practice of [[FTC regulation of behavioral advertising|behavioral targeting]] for some time. In 2011 the FTC proposed a "[[Do Not Track]]" mechanism to allow Internet users to [[opt-out]] of [[behavioral targeting]].{{Citation needed|date=August 2024}}

The FTC, along with the  [[United States Environmental Protection Agency|Environmental Protection Agency]] and Department of Justice also empowers third-party enforcer-firms to engage in some regulatory oversight, e.g. the FTC requires other energy companies to audit offshore oil platform operators.<ref>{{Cite journal|last=Van Loo|first=Rory|date=2020-04-01|title=The New Gatekeepers: Private Firms as Public Enforcers|url=https://scholarship.law.bu.edu/faculty_scholarship/800|journal=Virginia Law Review|volume=106|issue=2|pages=467}}</ref>

In 2013, the FTC issued a comprehensive revision of its [[Green guides]], which set forth standards for environmental marketing.<ref>{{cite web |date=October 1, 2012 |title=FTC Issues Revised 'Green Guides' |url=http://www.ftc.gov/opa/2012/10/greenguides.shtm |access-date=October 24, 2013 |website=FTC.gov}}</ref>{{Secondary source needed|date=August 2024}}

=== Unfair or deceptive practices affecting consumers ===
{{Primary sources section
| date = August 2024
}}[[File:EndorsementGuides 0.webm|thumb|thumbtime=2:28|upright=1.1|''Endorsement Guides'' from the FTC]]
Section 5 of the Federal Trade Commission Act, {{UnitedStatesCode|15|45}} grants the FTC power to investigate and prevent ''deceptive'' trade practices. The statute declares that "unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful."<ref>{{UnitedStatesCode|15|45(a)(1)}}</ref>

Unfairness and deception towards consumers represent two distinct areas of FTC enforcement and authority. The FTC also has authority over unfair methods of competition between businesses.<ref name="Unfairness Policy">{{cite web|url=http://www.ftc.gov/bcp/policystmt/ad-unfair.htm |title=FTC Policy Statement on Unfairness, Dec. 17, 1980 |publisher=Ftc.gov |access-date=August 14, 2012}}</ref>

==== Definitions of unfairness ====
Courts have identified three main factors that must be considered in consumer unfairness cases: (1) whether the practice injures consumers; (2) whether the practice violates established public policy; and (3) whether it is unethical or unscrupulous.<ref name="Unfairness Policy" />

==== Definitions of deception ====
In a letter to the Chairman of the House Committee on Energy and Commerce, the FTC defined the elements of [[deception]] cases. First, "there must be a representation, omission or practice that is likely to mislead the consumer."<ref name="Deception Policy">{{cite web|title=FTC Policy Statement on Deception, Oct. 14, 1983|url=http://www.ftc.gov/bcp/policystmt/ad-decept.htm|access-date=August 14, 2012|publisher=Ftc.gov}}</ref> In the case of omissions, the Commission considers the implied representations understood by the consumer.

A misleading omission occurs when information is not disclosed to correct reasonable consumer expectations.<ref name="Deception Policy" /> Second, the Commission examines the practice from the perspective of a reasonable consumer being targeted by the practice. Finally the representation or omission must be a material one{{snd}}that is one that would have changed consumer behavior.<ref name="Deception Policy" />[[File:Federal Trade Commission Entrance Doorway.jpg|thumb|Federal Trade Commission entrance doorway in Washington, DC]]

===== Dot Com Disclosures guide =====
In its Dot Com Disclosures guide,<ref name="Dot Com Disclosures">{{cite web|url=https://www.ftc.gov/sites/default/files/attachments/press-releases/ftc-staff-revises-online-advertising-disclosure-guidelines/130312dotcomdisclosures.pdf |title=.com Disclosures: How to Make Effective Disclosures in Digital Advertising, March 2013 |publisher=FTC |access-date=January 19, 2016}}</ref> the FTC said that "disclosures that are required to prevent deception or to provide consumers material information about a transaction must be presented clearly and conspicuously."<ref name="Dot Com Disclosures"/> The FTC suggested a number of different factors that would help determine whether the information was "clear and conspicuous" including but not limited to: 
*the '''placement''' of the disclosure in an advertisement and its '''proximity''' to the claim it is qualifying,
*the '''prominence''' of the disclosure,
*whether items in other parts of the advertisement '''distract attention''' from the disclosure,
*whether the advertisement is so lengthy that the disclosure needs to be '''repeated''',
*whether disclosures in audio messages are presented in an adequate '''volume and cadence''' and visual disclosures appear for a sufficient '''duration''', and 
*whether the language of the disclosure is '''understandable''' to the intended audience.<ref name="Dot Com Disclosures"/>
However, the "key is the overall net impression."<ref name="Dot Com Disclosures"/>