Ftc Act Section 5

Section 5 a of the ftc act 15 u s c.

Ftc act section 5. 45 after the date of enactment of this act aug. The commission may seek civil penalties from any person or company that violates a rule with actual knowledge or knowledge fairly implied on the basis of objective circumstances that such act is unfair or deceptive and is prohibited by such rule. The booklet contains information for examiners regarding supervision of a bank s 1 practices related to section 5 of the federal trade commission ftc act which prohibits banks from engaging in unfair or deceptive acts or practices udap and sections 1031 and 1036 of the dodd frank wall street reform and consumer protection act which prohibit unfair deceptive or abusive acts or practices udaap.

Section 5 of the federal trade commission ftc act. The authority to issue credit practices rules under section 5 of the ftc act e g regulation aa credit practices rule for banks savings associations and federal credit unions was repealed as a consequence of the dodd frank wall street reform and consumer protection act dodd frank act. According to section 5 n of the ftc act to be deemed unfair 1 an act must be likely to cause substantial injury to consumers 2 consumers cannot reasonably avoid the injury and 3 the injury is not outweighed by benefits to consumers or competition.

The amendments made by section 6 of this act amending this section shall apply only with respect to cease and desist orders issued under section 5 of the federal trade commission act 15 u s c. The board has affirmed its authority under section 8 of the federal deposit insurance act to take appropriate action when unfair or deceptive acts or practices udap are discovered. Unfair methods of competition.

Federal trade commission act. The ftc issues rules pursuant to section 5 of the ftc act when it has reason to believe that certain unfair or deceptive acts or practices are prevalent in an industry. The section of the federal trade commission act prohibiting.

The two most significant statutory provisions are section 5 a of the ftc act and the clayton act. 41 et seq short title see 15 u s c. This prohibition applies to all persons engaged in commerce including banks.

Violates the sherman act or other federal antitrust laws. It is usually found in the note section attached to a relevant section of the code usually under a paragraph identified as the short title. 45 a prohibits inter alia unfair methods of competition unfair methods of competition include any conduct that would violate the sherman antitrust act or the clayton act.