Federal Trade Commission Act (1914)

1) Link to the Text of the Act
Read the statute (15 U.S.C. §§ 41–58)

2) Why It Was Done
The FTC Act was enacted to establish the Federal Trade Commission and empower it to prevent unfair methods of competition and unfair or deceptive acts or practices in commerce.

3) Pre-existing Law or Constitutional Rights
The Sherman Act (1890) and Clayton Act (1914) addressed monopolization and certain business practices but lacked a dedicated enforcement agency. The FTC Act created an independent body to oversee and enforce fair trade.

4) Overreach or Proper Role?
Supporters see it as a vital consumer and competition watchdog. Critics argue the FTC sometimes stretches its authority, especially in defining “unfair” practices.

5) Who or What It Controls

• Businesses and corporations engaged in interstate commerce
• Advertising and marketing practices (truth-in-advertising laws)
• Mergers and trade practices under antitrust review

6) Key Sections / Citations

• 15 U.S.C. § 45 (prohibition on unfair or deceptive acts or practices)
• 15 U.S.C. § 46 (FTC powers and duties)
• 15 U.S.C. § 53 (injunctions and enforcement)

7) Recent Changes or Live Controversies

• Active enforcement against big tech companies for competition and privacy issues
• Expanding interpretation of “unfair or deceptive acts,” including digital markets and data privacy
• Debate over the scope of FTC rulemaking authority

8) Official Sources

• U.S. Code – Title 15, Chapter 2
• Federal Trade Commission – About the FTC
• DOJ Antitrust Division

• Antitrust
• Competition
• Consumer Protection
• Business
• Commerce