Are there any defenses to Section 5 of the FTCA?
Yes, there are several legal defenses to Section 5 of the Federal Trade Commission Act (FTCA) in North Carolina. Section 5 of the FTCA prohibits “unfair or deceptive acts or practices” related to competition and trade. One defense to Section 5 of the FTCA is compliance with all applicable laws. If a business has complied with all applicable antitrust laws, then it may be able to argue that its conduct was not unfair or deceptive. Another defense is based on the exemption for small businesses. Even if a business’s conduct appears to be unfair or deceptive under the FTCA, it can argue that it falls within the exemption for small businesses. This exemption states that the FTCA does not apply to small businesses that have less than a certain amount of sales, assets, or employees. The FTCA also allows businesses to defend their conduct if it is based on a “bona fide business purpose.” To establish this defense, the business must be able to demonstrate that its conduct was based on legitimate competitive purposes rather than the intent to deceive or harm consumers. Finally, the FTCA also requires that a defendant have the “intent to deceive” in order to be held liable for unfair or deceptive practices. If the defendant can demonstrate that it did not have any intention to deceive, then its conduct may not be considered unfair or deceptive.
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