Through note above and below at the bottom of each page of the pdf version and. Ftc also has exclusive authority to enforce section 5 of the federal trade commission act of 1914,3 which prohibits unfair methods of competition. It was last amended by the public law listed in the as amended. Concentration, cooperation, control, and competition pdf. Under this act, as amended, the commission is empowered, among other things, to a prevent unfair methods of competition and unfair or deceptive acts or practices in or affecting commerce.
The federal trade commission is an independent agency of the united states government, established in 1914 by the federal trade commission act. The 1914 federal trade commission act was a federal law passed during the era of the progressive movement that created the 1914 federal trade commission ftc as his antitrust action to monitor american companies and investigate unfair business practices. Section 5 is generally viewed as covering not only the same civil antitrust violations prosecuted by the ftc and doj under the sherman act4 and the clayton act,5 but also other conduct that. You will need adobe reader to view the pdf download adobe reader. Section 7 of the clayton antitrust act of 1914 clayton act. The senate approved the ftca on september 8, 1914, by a vote of 435.
What does federal trade commission act of 1914 mean in law. This publication is a compilation of the text of chapter 311 of the 63rd congress. Federal trade commission law and legal definition uslegal, inc. An act to create a federal trade commission, to define its powers and duties, and for other purposes be it enacted. Federal trade commission act legal definition of federal. The federal trade commission is an independent agency that aims to protect consumers and ensure a strong competitive market by.
Then, in 1914, with the backing of wilson, the federal trade commission act created the federal trade commission. The federal trade commission ftc is responsible for policing business practices across the nation and making sure competition remains fair. The amendments made by section 9 of this act amending this section shall apply only with respect to cease and desist orders issued under section 5 of the federal trade commission act 15 u. The sherman antitrust act of 1890, the clayton act of 1914, the robinsonpatman act of 1936, and the federal trade commission act of 1914 together ensure interfirm competition without interfering with the spirit and creativity of the marketing industry. Federal trade commission ftc l federal trade commission act passed in 1914, declared that unfair methods of competition are hereby declared unlawful. Federal trade commission ftc encyclopedia business terms. The legislation that created the federal trade commission, which administers and enforces u. Dec 22, 2019 the federal trade commission act of 1914 was a piece of federal legislation that created the u. An act to create a federal trade commission, to define its powers and duties, and for other purposes be it enacted by the senate and house of representatives of the united states of america in congress assembled, that a commission is hereby created and established, to be known as the federal trade. Accompanying this act was the federal trade commission act of 1914, which created the federal trade commission, a major agency overseeing business practices.
In early years, ftc regarded unfair methods as those involving businesstobusiness transactions and didnt have jurisdiction over consumer advertising and other consumerrelated activities. The federal trade commission act of 1914 prohibits unfair methods, acts, and practices of competition in interstate commerce. The greatest antitrust concern arises with proposed. Meaning of federal trade commission act of 1914 as a legal term. Even though many of the original issues resulting from the passage of the ftca were related to oppressive monopolies and antitrust issues, the breadth of the ftca is much broader.
It was signed into law by president woodrow wilson on september 26, 1914. Not more than three of the commissioners may be members of the same political party. Federal trade commission ftc encyclopedia business. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Section 7 of the clayton act prohibits mergers and acquisitions when the effect may be substantially to lessen competition, or to tend to create a monopoly. Signed into law by president woodrow wilson, who was a strong proponent of it, the federal trade commission act was a major response to 19thcentury monopolistic trusts. The ftc was established in 1914 with the passage of the federal trade commission act. The act, signed into law by woodrow wilson in 1914, outlaws unfair methods of competition and outlaws unfair acts or practices that affect commerce. The role of the agency is generally described as countering unfair and deceptive practices to ensure the functioning of a competitive marketplace. American tobacco 1911 demonstrated that trusts could be dissolved, public calls for a policy regulating combinations and monopolies increased. Federal trade commission act chapter 311 of the 63rd congress, 38 stat. Choose from 96 different sets of federal trade commission act of 1914 flashcards on quizlet. The house approved the bill by voice vote on september 10, 1914.
Unfair or deceptive acts or practices background section 5a of the federal trade commission act ftc act 15 usc 45 prohibits unfair or deceptive acts or practices in or affecting commerce. Federal trade commission act federal trade commission. Definition and summary of the federal trade commission act summary and definition. The federal trade commission ftc was established as an independent administrative agency pursuant to the federal trade commission act of 1914. Established in 1914 to prohibit unfair methods of competition under the sherman antitrust act 1890 and the clayton antitrust act 1914, the federal trade commission ftc, prior to the 1920s, aggressively pursued an antimonopolistic course. The clayton antitrust act 1914 also granted the ftc the authority to act against. Federal trade commission act ftca, federal legislation that was adopted in the united states in 1914 to create the federal trade commission ftc and to give the u. Federal trade commission act prohibiting unfair trade practices. As amended through public law 111203, enacted july 21, 2010. The federal trade commission act was passed by the us congress in 1914 and resulted in the creation of the federal trade commission ftc, a federal agency that was tasked with the duty of investigating businesses for evidence of unfair business practices such as unfair competition or deceptive practices. Definition of federal trade commission act of 1914 in the legal dictionary by free online english dictionary and encyclopedia. The federal trade commission act protects consumers from unfair and deceptive.
Federal trade commission act of 1914 financial dictionary. The key question the agency asks is whether the proposed merger is likely to create or enhance market power or facilitate its exercise. Federal trade commission act united states 1914 britannica. Dec 26, 2010 the federal trade commission act of 1914 established the federal trade commission ftc, a bipartisan body of five members appointed by the president of the united states for seven year terms. Clayton antitrust act summary, history, significance. It is headquartered in the federal trade commission building in washington, dc. In contrast, the cellerkefauver act went further by restricting even mergers of. The statutes closely mirror the federal trade commission act ftc act,3 which also protects the public from abuses arising in the course of competitive trade. A corporate guideline of ethics needs to go beyond the issues covered by legislation. One way in which the federal trade commission 1914 and the clayton antitrust act 1914 are similar is that both 2 attempted to correct abusive business practices, since they both aimed at curbing the monopolies that were dragging the us economy down. The federal trade commission ftc was established in order to promote fair trading practices and to protect consumers from corruption and illicit behavior on the part of corporations. This prohibition applies to all persons engaged in commerce, including banks. The purpose of the ftc is to enforce the provisions of the federal trade commission act, which prohibits unfair or deceptive acts or practices in commerce.
Federal register agencies federal trade commission. Section 5 of the federal trade commission act ftc act prohibits unfair. Trustbusting was a major theme of the 1912 presidential election, and most political platforms that year favored the establishment of a trade commission. Congress passed the federal trade commission act the ftc. What does federal trade commission act of 1914 mean in finance. Part of their task is monitoring business transactions to ensure that industry concentration levels do not adversely affect competition.
The federal trade commission act of 1914 established the federal trade commission. Meaning of federal trade commission act of 1914 as a finance term. D any activity in preparation for a merger, acquisi. When the ftc was created in 1914, its purpose was to prevent unfair methods of competition in commerce as part of early government efforts to break up large trusts and prevent them from dominating industries. Department of justice and the federal trade commission, enforce the nations antitrust laws, including the sherman antitrust act 1890 and the clayton act 1914. The commission is composed of five members appointed by the president, with the advice and consent of the senate, for a term of 7 years. Federal trade commission ftc the federal trade commission ftc was established as an independent administrative agency pursuant to the federal trade commission act of 1914. An act to create a federal trade commission, to define its. Federal trade commission ftc l federal trade commission act. The purpose of the ftc is to enforce the provisions. D any activity in preparation for a merger, acquisition, joint venture. The federal trade commission act of 1914 was a piece of federal legislation that created the u. Definition of federal trade commission act of 1914 in the financial dictionary by free online english dictionary and encyclopedia. In 1914, congress passed the federal trade commission act, creating an agency to enforce the new statutes and protect consumers from unfair business practices.
Not more than three of the commissioners shall be members of the same political party. Be it enacted by the senate and house of representatives of. Activities covered by this act included those mergers which inhibited trade by. The federal trade commission act ftca prevents unfair competition methods and unfair or deceptive acts that may affect business commerce. The fivemember body was created to protect consumers by preventing what it deemed unfair methods of competition between businesses and deceptive business practices. Federal trade commission act of 1914 marketography. An act to create a federal trade commission, to define its powers. Federal trade commission act ftca, federal legislation that was adopted in the united states in 1914 to create the federal trade commission ftc and to. It also created the federal trade commission, a bipartisan commission of five presidential appointees, confirmed by the senate, to police violations of the act. The federal trade commission was established in 1914 by the federal trade commission act 15 u. This commission was authorized to issue cease and desist orders to large corporations to curb unfair trade practices. While there is no federal or state law that specifically regulates these sorts of claims, there are two federal statutes, the lanham act and the federal trade commission act among others that have been interpreted to govern these sorts of claims.
Act in the 1950s gave the ftc a role in approving corporate mergers. What was the debate of the federal trade commission act of. The federal trade commission act ftca is a federal law passed in 1914 establishing the federal trade commission ftc. The federal trade commission was established in 1914 to. One way in which the federal trade commission 1914 and the. A commission is created and established, to be known as the federal trade commission hereinafter referred to as the commission, which shall be composed of five commissioners, who shall be appointed by the president, by and with the advice and consent of the senate. Learn federal trade commission act of 1914 with free interactive flashcards. Be it enacted by the senate and house of representatives. Federal trade commission act of 1914 legal definition of. Functions of federal trade commission 1 under flammable fabrics act section 1191 et seq. Promotion of export trade and prevention of unfair methods of competition subchapter i federal trade commission an act to create a federal trade commission, to define its powers and duties, and for other purposes. Federal trade commission act of 1914 flashcards and. The federal trade commission act is the primary statute of the commission.
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