Commercial Practices Prohibited by FTC - Explained
What Type of Business Practices are Prohibited by the FTC?
Written by J. Mance Gordon
Updated at April 19th, 2024
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What type of commercial practices does the FTC prohibit in an effort to protect customers?
The FTC prohibits commercial practices that are deceptive to customers. This generally concerns the practices of merchants who market or otherwise represent the quality or characteristics of goods or services to customers. In determining what is deceptive, the FTC will look at various characteristics about the information disclosed to the public.
- How would a reasonable consumer understand the information in the context of the message?
- Are there any express and implied claims about the product or service?
- Would leaving out information from the advertisement give consumers a misimpression?
- Is the claim of deception material?
If the representations to customers are deemed to be deceptive, the customer or FTC may bring a civil action against the violator.
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