Asked by Jarrett Covelli on Jul 21, 2024
Verified
Describe the Wheeler-Lea Act of 1938 and name the company and the amount of that company's fine for their 2016 violation of this act.
Wheeler-Lea Act
A U.S. law passed in 1938 that amended the Federal Trade Commission Act to prohibit unfair or deceptive acts or practices in commerce.
Fine
A fine is a monetary penalty imposed as a punishment for an infraction, denial of a rule, or a criminal offense, often paid to a governmental or regulatory authority.
- Outline the evolution over time and the significance of antitrust policies in the United States.
Verified Answer
IL
Ismael LumibaoJul 27, 2024
Final Answer :
The Wheeler-Lea Act of 1938 amended the Federal Trade Commission Act to give the FTC the additional responsibility of policing "deceptive acts or practices in commerce." In so doing, the FTC tries to protect the public against false or misleading advertising and product misrepresentation. Thus, the Federal Trade Commission Act, as modified by the Wheeler-Lea Act, (1)established the FTC as an independent antitrust agency and (2)made unfair and deceptive sales practices illegal. The FTC is highly active in enforcing the deceptive advertising statutes. In 2016, the FTC fined German automaker Volkswagen $10 billion for ads that falsely claimed that Volkswagen vehicles generated low emissions.
Learning Objectives
- Outline the evolution over time and the significance of antitrust policies in the United States.
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