What the FTC Does (2024)

FAQs

What is the FTC and what do they do? ›

The 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 FTC enforces consumer protection laws to stop illegal business practices and get refunds to people who lost money. The chart below includes all active refund programs managed by the FTC. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize.

An act or practice is “unfair” if it “causes or is likely to cause substantial injury to consumers which is not reasonably avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or to competition.” 15 U.S.C.

The FTC's mission is protecting the public from deceptive or unfair business practices and from unfair methods of competition through law enforcement, advocacy, research, and education.

conducts investigations of possible order violations. files civil contempt actions in federal court to enforce injunctions. initiates court actions to obtain civil penalties for administrative order violations.

These cases can involve fraud, scams, identity theft, false advertising, privacy violations, anti-competitive behavior and more. The Legal Library has detailed information about cases we have brought in federal court or through our internal administrative process, called an adjudicative proceeding.

Whenever possible, the FTC uses the money it collects from defendants to provide refunds to injured consumers. If there is any money left in the settlement fund after the first distribution, the FTC may send a second round of payments. The FTC sends money that cannot be distributed to consumers to the U.S. Treasury.

We collect complaints about hundreds of issues from data security and false advertising to identity theft and Do Not Call violations. We use these complaints to bring cases, and we share them with law enforcement agencies worldwide for follow-up.

The FTC has the authority to conduct both “informal” and “formal” investigations. Most FTC investigations are informal initially—and many maintain this classification until their resolution. However, informal FTC investigations can also quickly become formal in nature.

§45(m)(1)(B). Under this authority, the Commission can seek civil penalties if it proves that (1) the company knew the conduct was unfair or deceptive in violation of the FTC Act and (2) the FTC had already issued a written decision (see below) that such conduct is unfair or deceptive.

Is FTC civil or criminal? ›

The FTC's Criminal Liaison Unit helps prosecutors bring more criminal consumer fraud cases. The FTC's civil enforcement actions shut down fraud and get restitution for consumers or disgorgement to the U.S. Treasury. Examples of FTC fraud cases include: telemarketing scams.

File a report with the FTC at ReportFraud.ftc.gov if your report is about: The business practices of an individual, company, or entity. You also can report identity theft at IdentityTheft.gov and Do Not Call violations at donotcall.gov.

If there's any reason to suspect they're not, you need to correct it by adjusting the placement, proximity, prominence, and presentation order of the disclosures until everyone sees them before proceeding. If you don't correct the problem, you'll run into trouble if someone files a complaint with the FTC.

Select federal consumer protection statutes, which apply nationwide, include the Federal Trade Commission Act (“FTC Act”), the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), the Gramm-Leach-Bliley Act (“GLB Act”), the Truth in Lending Act (“TILA”), the Fair Credit Reporting Act (“FCRA”), ...

Biography. Lina M. Khan is Chair of the Federal Trade Commission, which enforces the nation's antitrust and consumer protection laws.

FTC activities include investigating fraud or false advertising, congressional inquiries, and pre-merger notification. The FTC also handles scams and unfair or predatory business practices.

The FTC's Bureau of Consumer Protection stops unfair, deceptive and fraudulent business practices by: collecting complaints and conducting investigations. suing companies and people that break the law. developing rules to maintain a fair marketplace.

Companies that receive this Notice and nevertheless engage in prohibited practices can face civil penalties of up to $50,120 per violation.

The Federal Trade Commission plays a positive role for businesses and consumers by providing knowledge and also by attacking fraud and deception on the Internet.