According to the question, the federal trade commission was established in 1914 to prevent unfair business practices.
In accordance to the Federal trade commission ACT of 1914, the federal trade commission was established. It is an independent administrative agency. Since the agency was established by President Woodrow Wilson, it has been protecting investors, consumers and business from practices that are anti-competitive. Some of the anti-competitive practices include monopolies, unfounded product claim, monopolistic merger, price fixing and bid-rigging. The FTC function has greatly help the U.S economy to function properly, safely for investors, consumers and businesses at large.
The main reason the federal trade commission was set up was to re-enact, regulate and made some clarification to what antitrust act and Clayton antitrust act prohibited. These two laws encourages competition to the detriment of consumers and investors.
These laws were abused and this led to public outcry. The public outrage compelled President Woodrow Wilson to take proper action against monopolies and trusts.
Initially, the power vested on the federal trade commission was to prevent or dissolve monopolies and to initiate law suits against anyone who violate the laws.
Monopolies have an advert effect on the economy. They are anti-competitive in nature and they causes great harm to investors and consumers
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KEYWORDS:
The Federal Trade Commission is an independent agency established by US government to regulate unfair business practices.
Further Explanation:
On September 26, 1914 President Woodrow Wilson signed an act in the law “Federal Trade commission Act”, and thus established The Federal Trade Commission. Its main aim is to protect customers from any kind of fraud and promote the trade as well.
President Franklin D Roosevelt himself laid the foundation of the headquarters of this Commission. Its Headquarter was established in Washington, DC. He mentioned this place as the permanent address of the Federal Trade Commission forever and stands as a symbol of the government purpose insisting on a greater application of belief to conduct the business enterprises and corporation and their relationship to the body politics.
Enforcement actions, investigation and consumer business education are some of the functions of Federal Trade Commission, while its area of concern are advertising and marketing, Telemarketing, financial product and practices, privacy and identity protection etc. Commission also holds the responsibility of United States National Do Not Call Registry. It also holds the authority to bring most cases to Federal Court through its own attorney. It can also bolster U.S Department of justice in some of the consumer protection matters
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Answer Details:
Grade: High school
Subject: History
Chapter: Federal Trade Commission
Keywords:President Woodrow Wilson, Federal Trade commission Act, Franklin D Roosevelt, Washington, DC United States National Do Not Call Registry.
