What Is the Federal Trade Commission?
The Federal Trade Commission, or FTC, enforces federal consumer protection and antitrust laws.
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Updated on April 22.
FTC sues Uber
On April 21, the Federal Trade Commission sued Uber, the ubiquitous ride hailing company, alleging “deceptive billing and cancellation practices” with its premium subscription.
The suit claims that Uber enrolled customers in Uber One, a premium subscription, without their knowledge. Uber One costs $9.99 for fee-free deliveries and discounts on rides, but the FTC also says Uber misled customers about how much they could save. The FTC also alleges that Uber made the process difficult to cancel Uber One despite its promise that consumers could “cancel anytime.”
The Federal Trade Commission, or FTC, is a government agency in charge of enforcing federal consumer protection laws and federal antitrust laws. They’re also a key player in helping the public report fraud, navigate identity theft and even manage annoying unsolicited phone calls.
What does the FTC do?
The FTC was founded under the Federal Trade Commission Act. It is currently headed by Andrew Ferguson under the Trump Administration. The FTC Act empowers the commission to:
Prevent unfair methods of competition; unfair or deceptive acts; and other practices that affect commerce.
Seek monetary redress and relief for consumers.
Create rules to prevent unfair or deceptive practices.
Gather information and investigate organizations, businesses, management and practices involved in commerce.
Make reports and recommend actions to Congress, as well as the public.
It also provides information to consumers on avoiding scams and provides resources to report deceptive or unfair business practices.
In addition to enforcing the FTC Act, the FTC enforces more than more than 80 laws including:
Clayton Act: Prohibits actions that could restrict competition including unlawful corporate mergers and acquisitions. It also prohibits illegal “tying” actions, in which a seller of a product requires buyers to purchase an additional product as part of a package deal.
Identity Theft Act: Prohibits identity fraud.
Fair Credit Reporting Act: Protects information collected by consumer reporting agencies including credit bureaus.
Telemarketing Sale Rule: Requires telemarketers to provide specific disclosures; prohibits misrepresentation; prohibits calls at certain times and to those who asked not to be called; and sets sales payment restrictions.
What has the FTC done lately?
Recent FTC actions include:
“Click-to-cancel”: A new “click-to-cancel” rule will go into effect on Jan. 14. It requires sellers to make it as easy for consumers to cancel memberships and subscriptions as it was to enroll. The FTC announced the final rule on Oct. 16. Businesses have until May 14 to be fully compliant.
Noncompete agreement ban: In 2024, the FTC attempted to implement a new rule to ban companies from creating new noncompete agreements or enforce existing noncompetes. On Aug. 20, a federal judge in Texas blocked the rule. The FTC appealed the decision.
Fee transparency: On Dec. 17, the FTC announced a new junk fee rule requiring hotels, vacation rental websites and event ticketing sites to disclose all fees upfront rather than later in the booking process. The rule is expected to go into effect in April.
Halting the Albertsons-Kroger merger: On Dec. 10, two judges blocked the proposed merger of the two massive supermarket companies. The cases were brought by the FTC. One day later, Albertsons called off the merger with Kroger and sued the company for alleged breach of contract.
What the FTC can do for you
Here are some direct links to the FTC’s services for consumers:
Report fraud. Use the FTC’s fraud report assistant to submit a report about an impersonator; phone, internet or TV service; health care companies; online shopping; sweepstakes, prize or lottery; auto sale and repair; credit, debt or loan company; and even annoying phone calls.
Submit a public comment. Submit a public comment about a new proposed FTC rule. You can also comment on a proposed merger or acquisitions and file an antitrust complaint.
Report identify theft. If you are the victim of identity theft, you can report it to the FTC and begin a plan for recovery.
Get your free credit report. The FTC provides guidance on accessing your free annual credit report at the three nationwide credit bureaus — Equifax, Experian and TransUnion — using AnnualCreditReport.com. You can also report scams related to credit reports.
Register for Do Not Call. Add your home or mobile phone number to the National Do Not Call Registry. If, after 31 days, you still receive an unwanted call, you can report it to the FTC. However, the FTC notes you may still receive calls from other types of organization including charities, debt collectors and political groups.
How to reach the FTC
The best way to make specific complaints, comments or reports is through the links above. Here are a few more ways to find out information from the FTC or contact the commission.
FTC phone number: Call the Consumer Response Center at 877-382-4357.
Mailing address:
Consumer Response Center
Federal Trade Commission
600 Pennsylvania Ave., NW
Washington DC 20580