federal trade commission act examples

"Example 2: A toaster is made from primarily U.S. parts and is assembled in Canada in a process that constitutes a substantial transformation. For example, the Commission has taken the position that The Commission also has taken the position that a unilateral change of contract may be an unfair practice. Of the remaining parts of the bicycle (tires, derailleur, gear shift, etc. ), some are manufactured in the United States and some are imported from foreign countries.

Origin Claims (e.g., "Made in USA"):A marketer making an unqualified U.S. origin claim should, at the time it makes the claim, possess and rely upon a reasonable basis that substantiates that the product is substantially all made in the United States. The manufacturer assembles the speakers in the United States from U.S. and imported components.

Congress passed the Federal Trade Commission Act to protect consumers from unfair methods of competition. at 175 (appending FTC Policy Statement on Deception).

Section 5 of the act gave the Federal Trade Commission (FTC) power to enforce a law that said “unfair methods of … §45(a). The FTC shares jurisdiction over federal civil antitrust enforcement in the United States with the Antitrust Division of the U.S. Department of Justice. Some, but not all, of these examples appear in the proposed guides. itself from U.S. materials. The engine is manufactured in the United States and other parts, such as the frame and the wheels, are imported from several different countries.

This bureau focuses on the protection of individuals by investigating and sometimes prosecuting companies that are in violation of federal laws relating to consumer affairs. Because both the manufacture of the compact disk and the encoding of music onto the disk would be considered substantial transformations under the Tariff Act, the last two levels of substantial transformation take place in the United States, and a printed statement on the compact disk that said "USA" would likely not be deceptive, even if the imported materials used in the manufacture of the compact disk account for more than 25% of the total manufacturing costs.Example 1: A piece of luggage is produced in the United States from leather that was tanned and processed in Italy. Overview Section 5 prohibits entities from engaging in unfair or deceptive acts or practices in interstate commerce. Respondent's practices constitute deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Respondents' practices constitute deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the The acts and practices of respondents alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the For purposes of this Agreement, “ Antitrust Law” means the Sherman Act, as amended, the Clayton Act, as amended, the HSR Act, the All contents of the lawinsider.com excluding SEC contracts are Copyright © 2013- The engine, however, is bought from a supplier. Several of the refrigerator's components are themselves assembled in the United States, but certain other major components, such as the compressor and the motor, are manufactured abroad. The inspiration and motivation for this act started in 1890, when the The Federal Trade Commission Act does more than just create the Commission, Thus, U.S. costs constitute 80% of the total cost of manufacturing the product (50% [U.S. cost of final assembly and other parts] + (60% x 50%) [U.S. cost of engine]).

( Cliffdale Assocs., 103 F.T.C.

However, provided that the manufacturer can substantiate that the difference between the U.S. content of its speakers and that of the other manufacturers' speakers is significant, the comparative claim would likely not be deceptive.1. It is headquartered in the Federal Trade Commission Building in Washington, DC.

The FTC assumed the duties of its less powerful predecessor, the federal Bureau of Corporations. The FTCA covers a broad range of consumer issues.

Contents[show] Citation Section 5 of the Federal Trade Commission Act (FTC Act), Ch. An advertising circular that described the snowblower as "Proudly made in America with U.S. and imported parts" would likely not be deceptive.Example 3: A typewriter is produced in the United States from a mix of U.S. and imported parts. The engine's cost constitutes 50% of the total cost of producing the lawn mower, while the manufacture of the other parts and final assembly costs constitute the other 50% of the total. U.S. costs, from final assembly operations at the manufacturer's U.S. factory and from U.S.-made parts, are significant but constitute less than 75% of the total cost of manufacturing the speakers, and, therefore, the manufacturer cannot substantiate an unqualified U.S. origin claim.