What Are Trade Regulations?

Trade regulation laws are laws enacted by both federal and state governments to promote unrestrained competition amongst businesses. Trade regulations extend into many categories of law, such as anti-trust law, which prohibits anti-competitive acts like price-fixing, monopolistic conduct, and deceptive practices. Consumer protection law, advertising law, trademark law, and franchise law also fall under the umbrella of trade regulation.

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Activities Regulated by the FTCA

In the broadest sense, the Federal Trade Commission Act (FTCA) regulates any deceptive trade practices that are considered harmful to consumers by businesses. The FTCA created the Federal Trade Commission to enforce the FTCA. The FTCA granted the Federal Trade Commission the authority to investigate and regulate deceptive practices, take actions to protect consumers, and the power to make administrative rules designed to enforce or support the FTCA.

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What are the Sherman Antitrust and Clayton Acts?

The Sherman Antitrust Act is a federal law prohibiting any contract, trust, or conspiracy in restraint of interstate or foreign trade. The Clayton Act regulates general practices that potentially may be detrimental to fair competition. Some of these general practices regulated by the Clayton Act are: price discrimination; exclusive dealing contracts, tying agreements, or requirement contracts; mergers and acquisitions; and interlocking directorates.

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What is the Federal Trade Commission Act (FTCA)?

The Federal Trade Commission Act (FTCA) prevents unfair competition methods and unfair or deceptive acts that may affect business commerce. Although many of the original issues which resulted in the passage of the FTCA were related to oppressive monopolies and anti-trust issues, the breath of the FTCA is much broader. The Federal Trade Commission Act covers a wide variety of business practices and consumer issues.

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