Asked by Alexis WATKINS on Jun 14, 2024

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What actions does the Federal Trade Commission have the power to implement when dealing with deceptive or misleading advertising and unfair business practices?

Federal Trade Commission

An independent agency of the United States government tasked with enforcing antitrust law and protecting consumers from unfair or deceptive business practices.

Deceptive

Describing actions, practices, or advertisements intended to mislead or cheat, often by presenting false information or omitting the truth.

Misleading Advertising

Advertising that deceives or misleads consumers, often through false claims or by failing to reveal critical information, which can influence buying decisions.

  • Identify the powers and actions of the Federal Trade Commission in regulating advertising and unfair business practices.
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AH
Andrew HarrisJun 18, 2024
Final Answer :
Promotion and advertising are aspects of marketing closely monitored by the Federal Trade Commission (FTC), which was established by the FTC Act of 1914. The FTC has been concerned with deceptive or misleading advertising and unfair business practices and has the power to (1) issue cease and desist orders and (2) order corrective advertising. In issuing a cease and desist order, the FTC orders a company to stop practices the commission considers unfair. With corrective advertising, the FTC can require a company to spend money on advertising to correct previous misleading ads. The enforcement powers of the FTC are so significant that often just an indication of concern from the commission can cause companies to revise their promotion.