What is the Federal Trade Commission Act?

The Federal Trade Commission Act is a federal law enacted by Congress in 1914 to establish the Federal Trade Commission (FTC) and empower it with the authority to protect consumers from unfair and deceptive trade practices. The FTC is responsible for enforcing laws that protect consumers from unfair or deceptive advertising and marketing practices, as well as laws that regulate the banking and financial services industry. In banking and financial services, the FTC Act protects consumers from fraud, deceit, and other unfair practices. The FTC Act establishes two main legal requirements for banks and other financial services companies operating in Massachusetts. First, the Act requires that banks and other financial services companies not engage in unfair or deceptive acts or practices. This means that banks and other financial services companies must provide accurate and complete information to consumers about all services they offer, including loan and credit card terms and conditions. Additionally, the FTC Act requires banks and other financial services companies to adhere to truth-in-advertising laws, which prohibit false or misleading statements in advertising and promotional materials. The FTC Act also provides for enforcement of its provisions by granting the FTC the power to investigate businesses and individuals to ensure compliance with the Act’s rules and regulations. In addition to the FTC, state regulatory bodies, such as the Massachusetts Division of Banks, also have the authority to enforce the provisions of the FTC Act. Thus, if a bank or other financial services company is found to be in violation of the Act, it can be subject to civil or criminal penalties.

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What is the Federal Trade Commission Act?

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