unfair trade practices and FTC

study

What is the primary purpose of the Consumer Protection Act?

To ensure informed consumer decisions

Which of the following is NOT considered an unfair trade practice?

Honest product endorsements

What does the term 'bait and switch' refer to?

Offering a product at a low price but selling a different, more expensive product

Under the Federal Trade Commission Act, which of the following is a requirement for a practice to be considered unfair?

It must cause injury to consumers

What action can consumers take against unfair trade practices?

Sue for compensatory or punitive damages

Which bureau of the FTC is responsible for protecting consumers against unfair trade practices?

Bureau of Consumer Protection

What is a common consequence for businesses found guilty of unfair trade practices?

Legal penalties and fines

Which of the following is an example of failing to disclose pertinent information?

Not mentioning additional fees before a purchase

 

What does the Wheeler-Lea Act empower the FTC to do?

Combat false advertising

Which of the following practices would likely be considered misleading price information?

A 'Going Out of Business' sale that is permanent

Why is it important for companies to use terms like 'new' accurately?

To avoid legal action

In the example with Ivan's curtain purchase, which unfair practice was demonstrated?

Providing false endorsements and advertising

False advertising includes which of the following?

Misrepresenting a product, service, or price

Which population is often targeted by unfair trade practices?

Vulnerable groups, such as seniors and non-English speakers

What problem did monopolies and trusts cause in the late 19th century?

Reduced competition and higher prices

Which of the following best describes the FTC's current role?

Enforcing consumer protection laws and antitrust rules

How should companies handle product guarantees?

Honor them as advertised

Which bureau of the FTC  focuses on antitrust issues?

Bureau of Competition

What does the FTC consider equally as severe as providing false information?

Withholding pertinent information

What does misleading price information often involve?

Hidden terms or false claims about sales