Organization attributes
Other attributes
The Federal Trade Commission (FTC) is an independent agency empowered by the United States Congress to:
- prevent unfair methods of competition and unfair or deceptive acts or practices in or affecting commerce;
- seek monetary redress and other relief for conduct injurious to consumers;
- prescribe rules defining with specificity acts or practices that are unfair or deceptive and establishing requirements designed to prevent such acts or practices;
- gather and compile information and conduct investigations relating to the organization, business, practices, and management of entities engaged in commerce; and
- make reports and legislative recommendations to Congress and the public.
The FTC's stated mission is "protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education without unduly burdening legitimate business activity."
While first envisioned as a small antitrust agency, over time Congress expanded the FTC's role into a wide range of other matters, including enforcement of antitrust and consumer protection laws affecting virtually every area of commerce.
The FTC functions as an investigative and enforcement organization as well as a rulemaking body. With exponential growth of the internet in the early 21st century, many FTC efforts became focused on the activities of large technology companies.
The FTC was established in 1914 with enactment of the Federal Trade Commission Act (FTCA), which was proposed by Congress in response to the rise of monopolies in the late 19th century. Through the FTCA, Congress charged the FTC with the dual mission to protect consumers and promote competition in the marketplace.
Since the passage of the FTCA, the role of the FTC was expanded through numerous acts of legislation. As of 2022, over seventy laws provide the commission with enforcement or administrative responsibilities. The following are highlights of those laws:
- Sherman Antitrust Act (1890). The first US antitrust law, envisioned as a "comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade."
- Federal Trade Commission Act (1914). The primary statutory authority of the FTC. This Act has been amended at least eight times since it was first enacted.
- Clayton Act (1914). Charges the FTC with preventing and eliminating unlawful tying contracts, corporate mergers and acquisitions, and interlocking directorates. FTC's jurisdiction is concurrent with the Department of Justice.
- Wheeler-Lea Act (1938). Expanded FTC's mission to include consumer protection against false advertising.
- Celler-Kefauver Antimerger Act (1950). Expanded the Clayton Act to empower the FTC and the Department of Justice to review vertical mergers and acquisitions for anticompetition practices.
- Truth in Lending Act (1968). Authorizes the FTC to enforce compliance by most non-depository entities. The Act requires creditors to make certain written disclosures concerning finance charges and related aspects of credit transactions (including disclosing an annual percentage rate).
- Fair Credit Reporting Act (1970). Requires the FTC to ensure compliance of rules which protect information collected by consumer reporting agencies such as credit bureaus, medical information companies, and tenant screening services.
- Magnuson-Moss Warranty—Federal Trade Commission Improvement Act (1979). Grants the FTC authority to promulgate trade regulation rules.
- Children's Online Privacy Protection Act (COPPA)(1998). Requires the FTC to issue and enforce regulations concerning children’s online privacy. Imposes certain requirements on operators of websites or online services directed to children under thirteen years of age.
- U.S. Safe Web Act (2006). Provides the FTC with authority to provide evidence to foreign law enforcement authorities through confidential information sharing and provision of investigative assistance.
The FTC consists of five commissioners, three bureaus, a number of supporting offices, and seven regional offices throughout the United States.
Federal Trade Commission Organizational Chart
The FTC is led by five commissioners, each appointed by the president and confirmed by the Senate. Each commissioner serves for a term of seven years. The political makeup of the FTC is intentionally bipartisan; not more than three commissioners may be from the same political party at any given time.
The Bureau of Competition enforces antitrust laws to prevent anticompetitive business practices in the marketplace.
The Bureau of Consumer Protection endeavors to protect consumers against unfair, deceptive, or fraudulent practices, as mandated in the law and FTC administrative trade rules. In support of this objective, the Bureau of Consumer Protection investigates companies and individuals and seeks remedies in federal court. It also develops rules to maintain a fair marketplace. Finally, the Bureau of Consumer Protection is charged with educating consumers and businesses about their rights and responsibilities. The Bureau of Consumer Protection is organized by the following divisions:
- Division of Privacy and Identity Protection
- Division of Advertising Practices
- Division of Consumer & Business Education
- Division of Enforcement
- Division of Marketing Practices
- Division of Consumer Response & Operations
- Division of Financial Practices
- Division of Litigation Technology & Analysis
- Office of Technology Research and Investigation
The Bureau of Economics supports the FTC's core missions by performing economic analysis to support the FTC’s positions and evaluating the economic impact of government regulation on businesses and consumers.
The FTC includes a number of supporting offices, included those for the following functional areas:
- Financial Management Office
- Administrative Law Judges
- Chief Privacy Officer
- Congressional Relations
- Equal Employment Opportunity and Workplace Inclusion
- Executive Director
- International Affairs
- Policy Planning
- General Counsel
- Public Affairs
- Secretary
The FTC employs eight regional offices covering seven geographic regions with the following responsibilities: (1) investigations and litigation, (2) local outreach to consumers and industry, and (3) partnership building with local, state, regional, and cross-border law enforcement authorities.
Seven Regional Offices of the Federal Trade Commission
