Which agency was created to regulate unfair competition and deceptive business practices?

• A. The Department of Commerce
• B. The Federal Trade Commission
• C. The Securities and Exchange Commission
• D. The Bureau of Competition

Answer: (B)

The right answer is the Federal Trade Commission. Founded in 1914, the FTC was created to curb unfair methods of competition and to police deceptive acts or practices in commerce. It embodies the Progressive Era push to shield consumers from misleading advertising, fraudulent business schemes, and anti-competitive conduct, and it wields authority to investigate, stop, and prevent these practices.

The Department of Commerce focuses more broadly on promoting trade and industry, not on policing deception. The Securities and Exchange Commission is centered on regulating the securities markets and protecting investors, not on general consumer deception or broad competition. The Bureau of Competition isn’t an independent agency; it’s a division within the FTC that handles antitrust and competition issues. So the agency formed specifically to regulate unfair competition and deceptive practices is the Federal Trade Commission.