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Federal Trade Commissions Regulations on Deceptive Trade

By Edited Feb 10, 2014 0 0

The Federal Trade Commission (FTC) monitors unfair or deceptive trade practices in business companies. It also penalizes cases of unfair competition. Likewise, it regulates consumer protection in industries.

The Federal Trade Commission Act (FTCA) stipulates laws on unfair competition, penalizing business owner who misleads consumers onto the source of goods or products. It also protects consumers against acts of trademark infringement.

The National Conference of Commissioners on Uniform State Laws has made several exemptions to trade practices.

The regulation on deceptive trade activities was focused on commercial transactions involving consumers for personal or household purchases.

In litigating an unfair trade practices complaint, the purpose of purchasing a product (personal or household use) is considered. Goods, services, and real property are considered as items for purchase.

The Federal Trade Commission evaluates the capacity of a seller to deceive or mislead consumers. It evaluates the intention of the seller in committing unfair trade activity. The FTCA may compel a business establishment to close or cease business transactions if

there is enough evidence to prove its capacity for fraud or unfair trade practice.

FTCA may penalize the business owner for a potential unfair practice regardless of the owner's knowledge and awareness of it. False advertisements and misrepresentations have corresponding charges.

The Uniform Deceptive Trade Practices Act sets forth the prohibitions on deceptive trade activities. Some examples are:

1. Misrepresenting products as those of other business establishment

2. Creating confusion onto the source of goods or services

3. Creating confusion onto the association of one business establishment to another

4. Misleading information on the geographic origin of the product

5. False information on the product's certification, sponsorship, approval, affiliation, benefits, and uses

6. False information on the condition of the product (second-hand claimed as brand new)

7. Misleading information on the product's standard, style, or quality

8. Misleading content information on the product

9. Intention not to fulfill promises in advertisements

10. Failure not to fulfill the promised quantity for the public

11. Deception in pricing and discount rates

The FTC guards consumers against unfair trade acts such as:

1. Taking advantage at times of calamity or disaster

2. Taking advantage of vulnerable consumers

3. Use of force in collection and sales

4. Unreasonable terms and conditions in contracts

5. Offensive action or behavior in business transactions

If you have purchased a product or availed of a service, and found acts of fraud or misrepresentation in the content or quality; you may file a complaint against the business owner.


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