The Federal Trade Commission started in 1914. The Federal Trade Commission protects consumers by keeping businesses from creating a monopoly by unfair methods of competition in commerce also known as to (bust the trusts). In the beginning, when the Federal Trade Commission was created, congress passed new laws which gave the agency a lot more authority to enforce anti-competitive practices (Federal Trade Commission, 2018). The Consumer Financial Protection Bureau was created in 2010 by the Dodd Frank Wall Street reform and consumer protection act. Their responsibilities are the overview of federal financial laws that pertain to protect consumers who keep their money in credit unions, banks, and who use credit cards for goods and services.
The Federal Trade Commission battles for consumers by keeping commerce from using deceptive practices. In more recent years the commission has administered many more consumer protection laws, such as equal credit opportunity act, and telemarketing sales rule, for profit entities, mortgage companies, and brokers. The Federal Trade Commission has more than 70 laws and regulation to enforce the protection of consumers. They educate consumers and companies on their rights and responsibilities. They sue companies and unscrupulous people who violate these laws by collecting data and complaints from consumers. The Consumer Protection Bureau uses consumer’s complaints to monitors financial markets for upcoming risks, researches consumer behavior and monitors financial institutions, which creates new legal protection for consumers in the future.
The Federal Trade Commission and the Consumer Financial Protection Bureau: Rules/Laws/Regulations
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Part of the Federal Trade Commission and the Financial Protection Bureau investigate law violations of businesses and individuals. They also have a federal rule making authority and the rights to industry wide regulations. These include the procedure and practice of the Commission rules of organization which falls under the Title 16 of the code of Federal regulations.
These are examples of Laws that the Federal Trade Commission and Consumer Financial Protection are, bankruptcy abuse, children online privacy, consumer leasing act, fair debt collection, and Identity theft. They are only a few examples of the laws that have been passed to protect consumers.
Regulations on the Children online privacy act is giving the control to the parents to decide what information a child can search and look for on the internet. It protects children under the age of 13. This regulation will notify the parents so the child will not release any vital personal information on the child and it gives the parent the opportunity to block the website the child may be on. Fair Debt collections, under these regulations the collection agencies are prohibited from being abusive and deceptive towards the consumer while trying to collect debts. They are not allowed to call at certain hours nor can they keep calling the consumer numerous times. They also cannot release information to anyone other than the consumer they are trying to reach.
The Federal Trade Commission and the Consumer Financial Protection Bureau: Investigate: Enforce/Penalties
In order to investigate consumer rights, the consumer needs to first file a complaint to the Federal Trade Commission or the Consumer Financial Protection Bureau. The consumer would need to provide proof of burden, which the Federal Trade Commission and/or the Consumer Financial Protection Bureau can use to bring charges against the business or persons committing the wrongful act towards the consumer or clouding transparency of their business practices and not excluding advertising techniques or consumer identity comprehension.
After an investigation should the Federal Trade Commission and the Consumer Financial Protection Bureau feel there has been a violation, they will enforce proper action decided by them as a whole because they are the acting law enforcement agency. They will undertake both court and administrative actions as they see fit to protect the consumer. Penalties may result in fees, jail time and the shutdown of the business in question and request any and all information pertaining to business practices in question. For example, fraudulent activity, false advertising, identity theft and buying or selling of consumer information.
AT;T to pay $80 million to the Federal Trade Commission as part of a $105 million-dollar settlement. This company billed customers unauthorized third-party charges. Turns out AT;T charged their customers for what they are calling mobile cramming. They were ordered to refund all customers. They also had to pay out $20 million dollars in fees and penalties to be paid out to all 50 states and $5 million dollars to the FCC. This has put money back into the pockets of the consumer and with the hard work of the Federal Trade Commission, this is now protecting them from further fraudulent billing by AT;T.
The Federal Trade Commission and the Consumer Financial Protection Bureau:
Impact
One of the obvious impacts on U.S. commerce is the creation of a level playing field for business and consumers to both be treated fairly by which keeping businesses competitive and on their toes, and keeping trade and commerce open and fair. All of which help the U.S. become a major player in the global economy, and giving the domestic consumer the opportunity of not being taken advantage of by those out to commit fraud. Especially against the disabled and older Americans.
