What is the Federal Trade Commission Act?

The Federal Trade Commission Act is a federal law passed in 1914 that established the Federal Trade Commission (FTC), the nation’s premier consumer protection agency. The law’s main purpose is to protect consumers against unfair and deceptive practices. In the banking and finance industry, this means protecting consumers from deceptive practices, such as predatory lending or being misled about the terms and conditions of a loan. Additionally, the FTC Act also prohibits deceptive marketing tactics, such as false and deceptive advertising. Under the FTC Act, it is illegal for any business or individual to engage in unfair or deceptive practices in the course of any business activity. The FTC has the authority to investigate suspected violations and take action against individuals, companies, and organizations that violate the law. Additionally, the FTC can bring civil suits against companies and organizations in federal court to seek restitution and damages for consumers who have been harmed by the company’s or organization’s deceptive practices. In the state of Washington, the FTC Act is enforced by the State Attorney General’s office, which works directly with the FTC to investigate and prosecute cases of deceptive practices connected to banking and finance. If a business or individual is found guilty of violating the FTC Act, the state may impose a range of penalties, including monetary fines and/or a ban on engaging in certain types of businesses. The Attorney General’s office also works to educate consumers about their rights, and to ensure that businesses are held accountable for any unfair and deceptive practices.

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What is the Federal Trade Commission Act?

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