Which act created the Federal Trade Commission to enforce consumer protection and antitrust laws?

• A. The Federal Reserve Act
• B. The Sherman Antitrust Act
• C. The Clayton Antitrust Act
• D. The Federal Trade Commission Act

Answer: (D)

Creating a federal regulator to oversee business practices and safeguard consumers is the idea behind this question. The Federal Trade Commission Act of 1914 established the Federal Trade Commission, giving it the authority to investigate and prevent unfair methods of competition and to enforce consumer protection and antitrust laws. This move reflected Progressive Era reformers’ goal of using a dedicated agency to police business conduct, not just rely on courts. The other acts contribute to antitrust history—Sherman banned restraints of trade, Clayton strengthened antitrust rules, and Federal Reserve Act set up the central banking system—but none created the FTC.