Federal Trade Commission (FTC)

Definition

The FTC is an independent agency of the U.S government whose main goals are to promote consumer protection and eliminate harmful competitive business practices.

Analogy

Consider FTC as your school's principal. Just like how principals enforce rules for student behavior to maintain a safe learning environment, FTC enforces regulations on businesses to protect consumers from unfair or deceptive practices.

Related terms

Antitrust Laws: These laws promote competition among businesses by prohibiting certain restrictive business practices such as monopolies.

False Advertising: This refers to misleading consumers through false statements about products or services.

Consumer Protection Act: A law designed to ensure fair trade competition and protect consumers from unfair business practices.