Business Studies

Consumer laws were established to protect purchasers of goods and services.
• What purpose does the Federal Trade Commission serve and why must business owners be educated on Federal Trade Commission practices?
• Consider 1 of the following sections of the Federal Trade Commission Act:
• Deceptive Advertising
• Labeling and Packaging Laws
• Sales
• Regarding the section you chose, provide an example of when a deceptive practice has been used in business and the consequence(s) for the deceptive practice.


Don't use plagiarized sources. Get Your Custom Essay on
Business Studies
Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT!
Order Essay









Federal Trade Commission

The purpose of the Federal Trade Commission is to promote competition by preventing monopoly and to protect consumers (Posner, 1969). It does this by encouraging competition and innovation, as well as advancing the interests of the consumers. In the market, it stops fraudulent, unfair and deceptive practices to protect consumers (FTC, 2020). Business owners need to be educated on FTC practices to enable them to obtain maximum benefit from the FTC. They need to be aware that the FTC can act on their behalf to investigate and sue individuals and companies. Education on the FTC practices will make them aware of their rights and responsibilities with regard to data security, deceptive advertising, identity theft, and so on.

Under the FTC, the Fair Packaging and Labeling Act (FPLA) requires that labelling is done on all consumer commodities to disclose the commodity’s identity, the manufacturer’s name and business location, packer and distributor (FTC FPLA, 2020). This Act allows for regulations to prevent deception on customers with regard to ingredient description, packaging, cents-off and size of the packages. The FPLA facilitates comparison of values and prevents deceptive labelling and packaging of consumer commodities. The Act is administered by the FTC with regard to consumer commodities that do not fall under the scope of the Food and Drug Administration.

Deceptive labelling and packaging come in varied ways. For example, a California-based manufacturer of personal care products named ‘Organix’ practised deceptive labelling by using a product name that was misleading (Aegis Law, 2020). Consumers filed a class-action lawsuit against the product line as its name misled them into thinking that the product’s ingredients were primarily organic. The manufacturer was forced to change the name of the product to avoid deceptiveness. Other consequences for deceptive labelling and packaging include paying damages to consumers due to the monetary loss incurred from purchasing an unwanted product.




















Aegis Law, (2020). False Product Labeling Attorneys | Aegis Consumer Attorneys. Retrieved      2 September 2020, from    misleading-or-deceptive-labeling/

FTC FPLA, 2020. Fair Packaging And Labeling Act: Regulations Under Section 4 Of The           Fair Packaging And Labeling Act. [online] Federal Trade Commission. Available at:             <      proceedings/fair-packaging-labeling-act-regulations-0> [Accessed 2 September        2020].

FTC. (2020). What We Do. Retrieved 2 September 2020, from           ftc/what-we-do

Posner, R. A. (1969). The federal trade commission. The University of Chicago Law         Review37(1), 47-89.


Homework Sharks
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Our Advantages

Plagiarism Free Papers

All our papers are original and written from scratch. We will email you a plagiarism report alongside your completed paper once done.

Free Revisions

All papers are submitted ahead of time. We do this to allow you time to point out any area you would need revision on, and help you for free.


A title page preceeds all your paper content. Here, you put all your personal information and this we give out for free.


Without a reference/bibliography page, any academic paper is incomplete and doesnt qualify for grading. We also offer this for free.

Originality & Security

At Homework Sharks, we take confidentiality seriously and all your personal information is stored safely and do not share it with third parties for any reasons whatsoever. Our work is original and we send plagiarism reports alongside every paper.

24/7 Customer Support

Our agents are online 24/7. Feel free to contact us through email or talk to our live agents.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

We work around the clock to see best customer experience.


Flexible Pricing

Our prces are pocket friendly and you can do partial payments. When that is not enough, we have a free enquiry service.


Admission help & Client-Writer Contact

When you need to elaborate something further to your writer, we provide that button.


Paper Submission

We take deadlines seriously and our papers are submitted ahead of time. We are happy to assist you in case of any adjustments needed.


Customer Feedback

Your feedback, good or bad is of great concern to us and we take it very seriously. We are, therefore, constantly adjusting our policies to ensure best customer/writer experience.

× Contact Live Agents
Verified by MonsterInsights