The Federal Trade Commission Act

The Federal Trade Commission (FTC) is one of the primary government enforcement bodies for antitrust violations in the United States. The Federal Trade Commission Act (15 U.S.C §§ 41-58) was enacted in 1914 and created the FTC, which promotes competition and challenges anticompetitive business practices in the marketplace.

The FTC Act is one of the three core federal antitrust laws, along with the Sherman Antitrust Act and the Clayton Antitrust Act.

Activities of the Federal Trade Commission (FTC)

The FTC, in conjunction with the U.S. Department of Justice Antitrust Division, enforces federal antitrust laws in the United States. Its responsibilities include:

• Prosecuting companies for federal antitrust law violations
• Evaluating pre-merger notifications to determine the merger’s impact on competition
• Developing policy for continued protection against anticompetitive activity
• Educating consumers and businesses about current laws and regulations

FTC Enforcement Regulations

The Supreme Court has said that all violations of the Sherman Act also violate the Federal Trade Commission Act. This allows the FTC to bring cases under the Sherman Act as well as the Federal Trade Commission Act. The FTC may investigate single companies or entire industries for antitrust violations, and may bring federal lawsuits against entities judged to have violated those laws.