The case would then be heard in a public administrative hearing called an adjudicative proceeding. A FTC judge would preside over this proceeding. If an appeal were desired the FTC"s five commissioners would hear the case. After this step would be the federal court of appeals and then the U.S. Supreme Court. .

             The Federal Trade Commission reviews deceptive practices on a case-by-case basis (Barnes et al, 1988). The court system often defers their judgments to the Commission's determinations. Actual or proven deception is not required; a practice likely to mislead a consumer is also deceptive under the FTC Act. The Commission may require sellers to substantiate their claims by showing a reasonable basis for making such claims (Barnes et al, 1988).

             The FTC may begin an investigation in different ways. Letters from consumers or businesses, Congressional inquiries, or articles on consumer or economic subjects may trigger FTC action (Federal Trade Commission, 1999). Investigations are either public or nonpublic. Generally, FTC investigations are nonpublic in order to protect both the investigation and the company.

             If the FTC believes a violation of the law occurred, it might attempt to obtain voluntary compliance by entering into a consent order with the company (Federal Trade .

             Deception 4.

             Commission, 1999). A company that signs a consent order need not admit that it violated the law, but it must agree to stop the disputed practices outlined in an accompanying complaint (Federal Trade Commission, 1999).

             If a consent agreement cannot be reached, the FTC may issue an administrative complaint. If an administrative complaint is issued, a formal proceeding that is much like .

             a court trial begins before an administrative law judge: evidence is submitted, testimony is heard, and witnesses are examined and cross-examined (Federal Trade Commission, 1999).

             Section 5 of the FTC Act also prohibits unfair acts or practices.