CIPP-US · Question #223
What was the original purpose of the Federal Trade Commission Act?
The correct answer is C. To enforce antitrust laws. The Federal Trade Commission Act (FTCA) was adopted in 1914 as part of the Progressive Era reforms that aimed to curb the power and influence of monopolies and trusts in the U.S. economy. The FTCA created the Federal Trade Commission (FTC) as an independent agency to…
Question
What was the original purpose of the Federal Trade Commission Act?
Options
- ATo ensure privacy rights of U.S. citizens
- BTo protect consumers
- CTo enforce antitrust laws
- DTo negotiate consent decrees with companies violating personal privacy
How the community answered
(25 responses)- A4% (1)
- B8% (2)
- C72% (18)
- D16% (4)
Explanation
The Federal Trade Commission Act (FTCA) was adopted in 1914 as part of the Progressive Era reforms that aimed to curb the power and influence of monopolies and trusts in the U.S. economy. The FTCA created the Federal Trade Commission (FTC) as an independent agency to investigate and prevent unfair methods of competition and unfair or deceptive acts or practices in or affecting commerce. The FTCA also gave the FTC the authority to issue cease and desist orders, seek injunctions, and impose civil penalties for violations of the law. The FTCA was intended to complement and supplement the existing antitrust laws, such as the Sherman Act and the Clayton Act, that prohibited restraints of trade, price-fixing, mergers, and other anticompetitive
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