The Federal Trade Commission enforces a variety of federal antitrust and consumer protection laws. The Commission seeks to ensure that the nation's markets function competitively, and are vigorous, efficient, and free of undue restrictions. The Commission also works to enhance the smooth operation of the marketplace by eliminating acts or practices that are unfair or deceptive (Federal Trade Commission, 1999). In general, the Commission's efforts are directed toward stopping actions that threaten consumers' opportunities to exercise informed choice (Federal Trade Commission, 1999). Finally, the Commission undertakes economic analysis to support its law enforcement efforts and to contribute to the policy deliberations of the Congress, the Executive Branch, other independent agencies, and state and local governments when requested (F

against defendants for violations including deceptive acts and practices. The FTC reports that National Scholarship Foundation violated Section 5 of the FTC Act by

misrepresenting material facts in connection with the offer and sale of their college scholarship search services. NSF falsely represent that consumers will be provided with a portfolio of scholarship and grant resources from which they are likely to obtain at least $1000 in grants and scholarships. NSF would falsely state that it would refund its fee if $1000 in grants and scholarships were not received. The fact is that NSF does not readily

notification respecting the rule violation or the unfair or deceptive act or practice, as the case may be (U.S. 15:57b).

the FTC Act will these practices stop? If we examine the case with Kevin Trudeau, his separate businesses were Eden's Secret Natures Purifying Product, Sable Hair Farming

The FTC has cases directly against individuals as in the FTC v. Kevin Trudeau (Damtoft, et, al 1998). This case involves an individual who has been involved in several

[Online]. Available: http://www.ftc.gov/oc/1998/9811/complai4.htm

Another aspect of the FTC Section 5 is governing unfair acts or practices. The FTC reviews behaviors that are not exactly deceptive acts, but is more concerned about consumer safety. To qualify as an injury, the FTC would have to prove three things. First they must prove substantial monetary losses or safety risks have occurred. Second the FTC must prove a sellers failure to give the consumer proper information on the product or service. This could give the seller an inappropriate advantage over the competition. Thirdly the FTC must prove the consumer could not have avoided an injury, either from high-pressure sales tactics or proving the seller did not make all information available to the consumers.

The reasonable consumer test protects the seller from liability and the consumer from every outrageous misconception they may entertain. For instance, this test would protect seller from liability if an American company advertised they were selling Belgium waffles, and the consumer wanted to sue based on the argument that Belgium waffles can only come from Belgium.

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