Consumer laws are needed to protect buyers from being exploited when purchasing goods and services and to regulate the transactions between consumers and sellers. The federal agency that creates and enforces consumer protection law is the Federal Trade Commission.
Respond to the following in a minimum of 175 words:
- What purpose does the Federal Trade Commission serve and why must business owners be educated on Federal Trade Commission practices?
- Consider 1 of the following sections of the Federal Trade Commission Act:
- Deceptive Advertising
- Labeling and Packaging Laws
- Credit Protection
- Regarding the section you chose, provide an example of when a deceptive practice has been used in business and the consequence(s) for the deceptive practice.
Reply to these two classmate’s statements below whether you agree or disagree. State why and explain. or your faculty member. Be constructive and professional. You will respond in 100 words each statement.
1)Hi everyone,
According to the Federal Trade Commission’s government website, the Federal Trade Commission serves the purpose of protecting the public from deceptive and unfair business practices. Additionally, the FTC protects the public from unfair competition tactics through the usage of law enforcement.
Out of the three sections of the Federal Trade Commissions Act, I decided to delve into the label and packaging laws. Established in 1964, the Fair Packaging and Labeling Act requires all consumer items to disclose the contents, name of manufacturer or distributor, and the identity of said item on the label. This is done to prevent deception to the consumer.
Young v. L’Oréal details how a consumer filed a lawsuit against the company for deceptive marketing and packaging. The accuser states that L’Oréal had four cosmetic products where the pump dispensers did not dispense a large amount of the product. Also, the dispensers do not dispense all of the product inside of the bottle, indicating that consumers aren’t getting their money’s worth. Unfortunately, I searched high and low and was not able to find a conclusion to this case. I did find that L’Oréal had filed a motion to dismiss the case, but no outcome beyond that. Given the nature of the case, I wouldn’t be surprised if was to be dismissed.
Federal Trade Commission. (n.d.). Mission. https://www.ftc.gov/about-ftc/mission#:~:text=About%20the%20FTC,-Mission&text=The%20FTC’s%20mission%20is%20protecting,broad%20sectors%20of%20the%20economy.
Federal Trade Commission. (n.d.). Fair Packaging and Labeling Act: Regulations Under Section 4 of the Fair Packaging and Labeling Act. https://www.ftc.gov/legal-library/browse/rules/fair-packaging-labeling-act-regulations-under-section-4-fair-packaging-labeling-act
2)Class, the FTC serves as a regulatory agency that protects customers and ensures fair competition in the marketplace. Its main purpose is to help prevent business practices that are anti-competitive , deceptive and unfair for the consumers. The FTC enforces laws that protect consumers from frauds and unfair business practices like false advertising , identity theft and also privacy violations.
I am picking credit protection which the FTC plays a key role in like regulating practices related to credit reporting and debt collection. It helps make sure that businesses comply with laws like the Fair Credit Reporting Act and the Fair Debt Collection Practices Act.
A story I have researched that is an example of deceptive practice is in 2012 the FTC charged Equifax Information Services with violating the FCRA. The company was improperly selling lists of consumers who were late on mortgage payments to other third parties which lead to violations of privacy and bad marketing practices. Their consequences were financial penalties, revised business practices and reputation damage.
