Joseph Lenox, age 15, of Lowell, Mass., for his question:
JUST WHAT IS THE FEDERAL TRADE COMMISSION?
The Federal Trade Commission, usually called the FTC, is an agency of the United States government that enforces certain laws that protect both businesses and customers from unfair practices of competition and untrue advertising of products and services.
The FTC is an independent agency of the government. Five people who are appointed by the President serve as commissioners for terms of seven years each.
Congress created the FTC in the Federal Trade Commission Act of 1914. The law made it unlawful to use unfair methods of competition in interstate commerce. The Wheeler Lea amendment to the act in 1938 outlawed not only unfair methods of competition, such as unjust monopolies, but it also outlawed unfair or deceptive acts or practices in commerce, such as untruthful claims in advertising. It provided for stricter control over advertising of food, drugs and cosmetics. Other amendments hove also been made over the years.
The FTC has the power to issue cease and desist orders.