One department of the Federal Trade Commission is the Office of Consumer Protection, and its “mandate is to protect consumers against unfair, deceptive or fraudulent practices.” There are six divisions of the Office of Consumer Protection as follows:
Advertising Practices Division: Consumers are protected from misleading or unfounded advertising. The focus is on advertising for the following products: tobacco and alcohol, over-the-counter food and medicine, energy-related products, environmental products, and infomercials.
Execution Division: Consumers are protected by enforcing court orders in consumer protection cases, investigating and prosecuting civil actions to stop fraudulent, unfair or deceptive marketing and advertising practices, and enforcing consumer protection laws.
The Financial Practices Division: Many consumer credit statutes apply, including the Consumer Leasing Act, the Credit Practices Rule, the Equal Credit Opportunity Act, and the Fair Credit Billing Act. The text of these laws can be found on the Federal Trade Commission website http://www.ftc.gov.
The Marketing Practice Division: Enforces federal consumer protection laws by filing legal action to stop scams and help scam victims.
The Planning and Information Division: Measures the impact of the FTC’s activities to protect consumers, including the Identity Theft Program.
The Office of Business and Consumer Education: Establishes public education programs for consumers and industry on fraud, deception, and unfair practices using print, broadcast, and electronic media.
It would be wise for you or your attorney to visit the FTC website, read the regulations, and set up systems to make sure they are compliant and stay compliant. If the FTC determines that you are in violation of any of its regulations, it has the authority for sixteen of your assets pending investigation. If the FTC obtains a court judgment against you, the fines are significant and the FTC could close your business.