The Federal Trade
Commission (FCC) had the power to investigate companies
and issue "cease and desist" notices against
corporations engaging in unfair trade practices, or
those companies that damaged competition. The Federal
Trade Commission was created on September 26, 1914 the
date when the law was passed.
Wilson's New Freedom Reforms for kids:
1914 Federal Trade Commission Act (FTC Act)
President Woodrow
Wilson, like his predecessors Theodore Roosevelt and William Taft,
was a firm supporter of the
Progressive Movement and
Progressive reforms. His New Freedom polices included the
passing of the federal law known as the Federal Trade Commission Act
as part of his economic reform legislation program.
Federal Trade Commission Act for kids: Why was the amendment to the law passed?
What was its Purpose?
The purpose of the Federal Trade Commission Act
was to establish the Federal Trade Commission (FCC)
to protect consumers and maintain competition. It was as part of the
'trust-busting' battle and designed to prevent fraud, deception, and
unfair business practices in the marketplace and prevent
anti-competitive mergers and other anti-competitive business
practices in the marketplace.
Who lobbied the
Federal Trade Commission Act?
Lawyer George Rublee
was a standard-bearer for the Progressive Party and lobbied for the Federal Trade Commission Act
and was instrumental in the creation of Section 5 of the FTC Act,
which gave the Commission prosecutorial authority to challenge
unfair methods of competition.
What did the
Federal Trade Commission Act do?
The Federal Trade Commission Act
gave the Federal Trade Commission (FCC)
authority to:
-
Protect consumers from
greedy or unfair business practices
-
Provided a forum for
American citizens to complain about unfair business practices of
a company
-
Investigate corporate
conduct
-
Issue cease and desist
orders to companies engaging in unfair practices
Federal Trade Commission Act for kids: Related Subjects
In a 1938 amendment, the Federal Trade Commission
(FCC) was given expanded powers in halting merger activities. For
additional information refer to the
Clayton Antitrust Act
that revised the
1890 Sherman Antitrust Act and banned monopolistic
practices by business and affirmed the right of workers
to go on strike. |