The Federal Trade Commission, commonly referred to as the FTC, is an independent government agency charged with protecting consumers and promoting competition in the U.S. economy. The FTC enforces antitrust laws, which are designed to ensure fair competition and protect consumers from fraud, deceptive advertising and sales, and other unfair or deceptive business practices.

The FTC was created in 1914 by the Federal Trade Commission Act, which was signed into law by President Woodrow Wilson as part of his administration’s effort to break up monopolies and other anticompetitive business practices. The FTC is structured as an independent body, meaning the commission members (five commissioners, appointed by the president and confirmed by the Senate) serve staggered seven year-terms and are responsible for making the agency’s decisions. By law, no more than three commissioners may belong to the same political party.

The FTC’s primary role is enforcing antitrust laws. In this regard, the agency has broad authority to investigate and prevent anticompetitive mergers and other practices that reduce competition and harm consumers. The FTC’s Bureau of Competition reviews proposed mergers, along with examining existing mergers to ensure that competition is not being harmed. To assist in enforcing antitrust laws, the FTC may issue orders requiring companies to cease certain activities or conduct studies to collect business data. The FTC also works with the Department of Justice to file antitrust lawsuits to prevent anticompetitive behavior.

The FTC also enforces laws intended to protect consumers from fraud and unfair or deceptive business practices. When the FTC finds violations of the laws, it may file suit against the violator, enter into voluntary agreements with the violator, or issue administrative orders. The FTC also educates consumers about their rights, often providing informational materials and advice. To assist in this effort, the agency has an online Consumer Response Center, a partner network, and a toll-free hotline to assist consumers with questions and complaints regarding scams and fraudulent activities.

Additionally, the FTC investigates complaints by individuals that involve a variety of topics, including false advertising, credit, identity theft, and privacy. It also accepts complaints from businesses, law enforcement agencies, and other government entities. The FTC may also issue advisory guidance to the public on a variety of topics, and occasionally submit amicus briefs to the courts in certain cases.

The FTC also funds and oversees research initiatives, legislative reviews, enforcement efforts, and rulemaking projects in areas such as privacy and security, health care, and online safety. The FTC collaborates with other agencies and organizations to promote consumer protection and to develop national strategies for addressing common issues.

In short, the FTC is the primary agency responsible for protecting consumers and maintaining the competitive nature of the U.S. economy. Its broad authority enables it to enforce mergers, investigate unfair or deceptive practices, and respond to consumer complaints. The FTC also educates consumers and collaborates with other agencies to develop strategies to protect consumers and promote competition.