Antitrust Legislation 5
Antitrust Legislation 5
Federal
Trade Commission (1914)
The same year they passed the Clayton Act, congress created the Federal Trade Commission, a government committee to monitor business practices and keep monopolies under control.
The FTC had the power to issue “cease and desist” orders whenever it found unfair competitive practices among businesses. These were analogous to warnings, and could be followed by prosecution under the antitrust laws if left unheeded.The FTC monitors businesses by investigating price-fixing and price discrimination, and by prohibiting mergers and amalgamations that may lessen competition or lead to monopoly. They also investigate false advertising and false labeling of products.
The FTC reports its findings to the government, and gathers data on economic and business conditions for the President, Congress, and the public.