FTC Restores Rigorous Enforcement of Law Banning Unfair Methods of Competition

The Federal Trade Commission issued a statement today that restores the agency's policy of rigorously enforcing the federal ban on unfair methods of competition. From a report: Congress gave the FTC the unique authority to identify and police against these practices, beyond what the other antitrust statutes cover. But in recent years the agency has not always carried out that responsibility consistently. The FTC's previous policy restricted its oversight to a narrower set of circumstances, making it harder for the agency to challenge the full array of anticompetitive behavior in the market. Today's statement removes this restriction and declares the agency's intent to exercise its full statutory authority against companies that use unfair tactics to gain an advantage instead of competing on the merits. "When Congress created the FTC, it clearly commanded us to crack down on unfair methods of competition," said FTC Chair Lina M. Khan. "Enforcers have to use discretion, but that doesn't give us the right to ignore a central part of our mandate. Today's policy statement reactivates Section 5 and puts us on track to faithfully enforce the law as Congress designed." Congress passed the Federal Trade Commission Act in 1914 because it was unhappy with the enforcement of the Sherman Act, the original antitrust statute. Section 5 of the FTC Act bans "unfair methods of competition" and instructs the Commission to enforce that prohibition.

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