Blog

The FTC’s status as an independent agency, secured in an early constitutional challenge to the FTC Act, was tested during the early years of the Cold War when the agency’s international work provoked a national security debate at the highest levels. Students of constitutional history may recall that the Supreme Court in Humphrey’s Executor v. United States, 295 U.S. 602 (1935), determined that the President does not have the authority to fire...

Each day companies seek out market information to gain insights on how to compete more effectively. When companies compete more effectively, that can be good for consumers, making more and better goods and services available to them at lower prices. But when competing companies seek market intelligence by exchanging price or other commercially sensitive information, that may facilitate collusion or otherwise harm competition and consumers in...

“No need to be fat. No need to diet or go through unpleasant exercise.” “Your thin friends can tell you the right way to fight fat.” “Men avoided me. I was too fat.” Sounds like a lot of the bogus diet promotions the FTC has gone to court to shut down. But there are two things different about this false advertising case. First, it went to the Supreme Court. And second, the year was 1931. For the first two decades of the FTC’s existence, there was...

From its earliest days, the Commission has used its authority under Section 6 of the FTC Act to gain a deep understanding of competitive conditions in a variety of industries. In its first two decades alone, the FTC produced more than 100 studies or responses to general inquiries, most often pursuant to Congressional resolutions or Presidential orders. Information and insight gained in these inquiries generated policy recommendations to tackle...

People who aren’t into marketing jargon might not know a “credence claim” from a Creedence Clearwater Revival, but experts tell us it’s a representation about a product that consumers aren’t in a position to evaluate for themselves. One example is what websites say about their privacy practices. Because consumers can’t test the accuracy of those claims, they often rely on third-party seals trusted for their expertise and independence. The FTC...

In celebration of the FTC’s 100th anniversary, we’ve been examining the leaves on our family tree. The FTC’s founding is often associated with turn-of-the-century trust busting, but a closer look – including a study of the very first case published in Volume 1 of Federal Trade Commission Decisions – proves that the intertwined roots of consumer protection and competition run deep. That’s one of the themes of the FTC@100 Symposium on Friday...