About The Federal Trade Commission, Consumer Watchdog

Keeping an Eye Out for All Consumers

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FTC is Your Government Watchdog on Duty. Tim Graham/Getty Images News

The Federal Trade Commission plays an important role in keeping American businesses honest.

An independent executive branch agency of the U.S. government, the FTC was established by the Federal Trade Commission Act of 1914 as part of President Woodrow Wilson’s initiative to break up monopolistic business trusts. Today, the primary missions of the FTC are to protect consumers from deceptive and fraudulent business practices and to eliminate and prevent unfair or anti-competitive business practices.

Along with key provisions of the Federal Trade Commission Act, the FTC enforces provisions of the Clayton Act, a major antitrust law. Since its inception, the FTC has been delegated by Congress with the enforcement of additional business regulation statutes and has promulgated a number of federal regulations dealing with a wide array of consumer protection issues. 

Beyond promoting fair marketplace competition, today’s FTC also strives to keep businesses honest by enforcing laws and federal regulations against illegal, deceptive or unfair marketing practices and by protecting consumers from a plethora of marketing scams.

The FTC's many duties are handled by different bureaus, which are in turn subdivided into divisions charged with specific tasks.

The Bureau of Consumer Protection safeguards consumers against unfair, deceptive or fraudulent business practices and is further divided into the following agencies:

  • The Division of Advertising Practices, which regulates print, broadcast, and online media. This includes marketing aimed at children; tobacco and alcohol advertising; health claims made by manufacturers of drugs, dietary supplements and foods; and performance claims by computer manufacturers, Internet service providers and other high-tech products and services.
  • The Division of Consumer and Business Education, which plans, develops and implements campaigns to educate and empower consumers to make smart, informed choices when buying goods or utilizing services. To that end, the division also maintains Web sites including Consumer.gov and Firstgov.gov.
  • The Division of Enforcement, which ensures compliance with federal court orders entered in consumer protection cases; conducts investigations and prosecutes civil actions to stop fraudulent, unfair or deceptive practices; and enforces consumer protection laws and guidelines.
  • The Division of Financial Practices, which regulates financial institutions, lenders, credit agencies and debt collectors.
  • The Division of Marketing Practices, which investigates and regulates marketers and soliciting activities, including telemarketers, Internet spammers, direct mail and pyramid schemes.
  • The Division of Planning and Information, which gathers and analyzes consumer information for use by law enforcement and education programs as well as responds to consumer complaints.
  • The Division of Privacy and Identity Protection, which helps consumers protect their credit, their banking and financial information and their personal information from identity theft.
  • The Bureau of Competition is the FTC's antitrust arm and ensures that mergers and corporate acquisitions don't interfere with the competition that keeps commerce healthy. It reviews potential mergers and/or acquisitions to see what effect they might have on their industry or the economy at large and works to ensure that consumers have a choice of providers for a particular product or service.​
  • The Bureau of Economics evaluates the impact of the agency's actions, regulations, and guidelines, both on industry and on the public. It provides economic guidelines for the enforcement of those regulations and analyzes how various markets and industries work as well as the dynamics that keep them going.

Fighting Abusive Telemarketing

Perhaps most visible to the most Americans is the FTC’s role as administrator of the Telemarketing Sales Rule, and operation of its wildly popular anti-telemarketing Do Not Call Registry.

The Telemarketing Sales Rule, requires telemarketers to disclosure of material information about the products or services they are promoting; prohibits false or deceptive claims; sets limits on the times of day telemarketers may call consumers; and prohibits calls to consumers whose phones are on the Do Not Call list or ask not to be called again.

In addition, the FTC leads the way in working to prevent unsolicited, automated or “robocall” telemarketing.

Phaedra Trethan is a freelance writer and a former copy editor for The Philadelphia Inquirer.

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Trethan, Phaedra. "About The Federal Trade Commission, Consumer Watchdog." ThoughtCo, Jan. 1, 2017, thoughtco.com/federal-trade-commission-consumer-watchdog-3321706. Trethan, Phaedra. (2017, January 1). About The Federal Trade Commission, Consumer Watchdog. Retrieved from https://www.thoughtco.com/federal-trade-commission-consumer-watchdog-3321706 Trethan, Phaedra. "About The Federal Trade Commission, Consumer Watchdog." ThoughtCo. https://www.thoughtco.com/federal-trade-commission-consumer-watchdog-3321706 (accessed October 18, 2017).