3/21/2017 Guide to Introduction US Food Laws and Regulations Federal Trade Commission is an independent agency that reports to Congress on its actions SECOND EDITION Chapter 8 PatriciaA.Curtis Commission is headed by 5 commissioners Federal Trade ·Commissioners: Commission Commission -are nominated by the President Regulations and the are confirmed by the Senate Food Industry -serve a 7-year term President chooses one to act as chairperson No more than three can be of the same politica WILEY Blackwall party Mission Mission ·Founded in1914 Markets work best when consumers can Dual mission to protect consumers and promote make informed choices based on competition accurate information -ensures that the nation's markets are vigorous,efficient and free of restrictions FTC enforces federal consumer that harm consumers protection laws that ·Competition prevent fraud -yields products with lowest price -prevent deception 、 spurs innovation prevent unfair business practices strengthens the economy
3/21/2017 1 Chapter 8 Federal Trade Commission Regulations and the Food Industry Introduction • Federal Trade Commission is an independent agency that reports to Congress on its actions • Commission is headed by 5 commissioners • Commissioners : - are nominated by the President - are confirmed by the Senate - serve a 7-year term • President chooses one to act as chairperson • No more than three can be of the same political party Mission • Founded in 1914 • Dual mission to protect consumers and promote competition - ensures that the nation’s markets are vigorous, efficient and free of restrictions that harm consumers • Competition - yields products with lowest price - spurs innovation - strengthens the economy Mission • Markets work best when consumers can make informed choices based on accurate information • FTC enforces federal consumer protection laws that : - prevent fraud - prevent deception - prevent unfair business practices
3/21/2017 Mission Mission FTC enforces federal antitrust laws that FTC conducts economic research and analysis -prohibit anticompetitive mergers to support its law enforcement efforts to contribute to policy deliberations of the prohibit business practices that restrict Congress,Executive Branch,state and local competition and harm consumers gov'ts,independent agencies ·Example actions: FTC work is performed by the 3 agencies telemarketing fraud Bureaus of Consumer Protection -internet scams Bureaus of Competition Bureaus of Economics -price-fixing schemes Mission Authorizing Acts ·FTC work is aided by: FTC deals with issues that impact the the Office of General Council economic lives of most Americans provides representation and legal advice FTC maintains a competitive marketplace on a wide range of highly visible national for consumers and businesses issues 1938,Wheeler-Lea Amendment broadened legal team-Department of Health and Human Services the FTC's powers to include protection for consumers from false advertising practices -7 regional offices
3/21/2017 2 Mission • FTC enforces federal antitrust laws that - prohibit anticompetitive mergers - prohibit business practices that restrict competition and harm consumers • Example actions : - telemarketing fraud - internet scams - price-fixing schemes Mission • FTC conducts economic research and analysis - to support its law enforcement efforts - to contribute to policy deliberations of the Congress, Executive Branch, state and local gov’ts, independent agencies • FTC work is performed by the 3 agencies - Bureaus of Consumer Protection - Bureaus of Competition - Bureaus of Economics Mission • FTC work is aided by: - the Office of General Council provides representation and legal advice on a wide range of highly visible national issues legal team -Department of Health and Human Services - 7 regional offices Authorizing Acts • FTC deals with issues that impact the economic lives of most Americans • FTC maintains a competitive marketplace for consumers and businesses • 1938, Wheeler-Lea Amendment broadened the FTC's powers to include protection for consumers from false advertising practices
3/21/2017 Authorizing Acts Authorizing Acts Telemarketing Sales Rule ·Pay-Per-Call Rule combats telephone bill cramming-- -prohibits misrepresentations unauthorized charges on consumers' onthe times telnorketer may cl phone bills prohibits calls to a consumer who has asked not to be called again sets payment restrictions for the sale of certain goods and services Authorizing Acts Authorizing Acts Equal Credit Opportunity Act unlawful for any creditor to discriminate 1975,Congress passed the Magnuson-Moss Act against any applicant with respect to: gave FTC authority to adopt trade requlation the basis of race,color,religion,national rules that define unfair or deceptive acts in industries origin,sex,marital status,or age (provided the applicant has the capacity to contract) governs warranties on a product all or part of the applicant's income derives does not require any product to have a from a public assistance program warranty but if it does have a warranty the warranty must comply with this law "applicant has in good faith exercised any right under the Consumer Credit Protection Trade regulation rules have the force of law Act
3/21/2017 3 Authorizing Acts • Telemarketing Sales Rule - requires telemarketers to make specific disclosures of material information - prohibits misrepresentations - sets limits on the times telemarketers may call consumers - prohibits calls to a consumer who has asked not to be called again - sets payment restrictions for the sale of certain goods and services Authorizing Acts • Pay-Per-Call Rule - combats telephone bill cramming -- unauthorized charges on consumers' phone bills Authorizing Acts • Equal Credit Opportunity Act - unlawful for any creditor to discriminate against any applicant with respect to: the basis of race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract) all or part of the applicant's income derives from a public assistance program applicant has in good faith exercised any right under the Consumer Credit Protection Act Authorizing Acts • 1975, Congress passed the Magnuson-Moss Act - gave FTC authority to adopt trade regulation rules that define unfair or deceptive acts in industries - governs warranties on a product - does not require any product to have a warranty but if it does have a warranty the warranty must comply with this law • Trade regulation rules have the force of law
3/21/2017 Bureau of Consumer Protection Bureau of Consumer Protection Enforces consumer protection laws enacted by Protects consumers against unfair,deceptive and fraudulent business practices by ndroderelnbh collecting complaints and conducting Contributes to informing Congress of the impact that investigations proposed actions may have on consumers suing companies and people that break the 、 Enhances consumer confidence by enforcing federal law laws that protect consumers developing rules to maintain a fair Empowers consumers with free information to help marketplace exercise their rights and avoid fraud and deception educating consumers and businesses about Wants to hear from consumers who want information their rights and responsibilities or to file a complaint about fraud or identity theft Bureau of Consumer Protection Bureau of Consumer Protection Seven divisions with the bureau Division of Advertising Practices -Division of Advertising Practices Nation's enforcer of federal truth-in- Division of Consumer and Business Education advertising laws -Division of Enforcement ·Priorities include Division of Financial Practices combating deceptive advertising of -Division of Marketing Practices fraudulent cure-all claims for dietary Division of Privacy and Identity Protection supplements and weight loss product -Division of Planning and Information monitoring and stopping deceptive internet marketing practices that develop in response to public health issues
3/21/2017 4 Bureau of Consumer Protection • Protects consumers against unfair, deceptive and fraudulent business practices by - collecting complaints and conducting investigations - suing companies and people that break the law - developing rules to maintain a fair marketplace - educating consumers and businesses about their rights and responsibilities Bureau of Consumer Protection • Enforces consumer protection laws enacted by Congress and trade regulation laws issued by the Commission • Contributes to informing Congress of the impact that proposed actions may have on consumers • Enhances consumer confidence by enforcing federal laws that protect consumers • Empowers consumers with free information to help exercise their rights and avoid fraud and deception • Wants to hear from consumers who want information or to file a complaint about fraud or identity theft Bureau of Consumer Protection • Seven divisions with the bureau - Division of Advertising Practices - Division of Consumer and Business Education - Division of Enforcement - Division of Financial Practices - Division of Marketing Practices - Division of Privacy and Identity Protection - Division of Planning and Information Bureau of Consumer Protection Division of Advertising Practices • Nation’s enforcer of federal truth-inadvertising laws • Priorities include - combating deceptive advertising of fraudulent cure-all claims for dietary supplements and weight loss product - monitoring and stopping deceptive internet marketing practices that develop in response to public health issues
3/21/2017 Bureau of Consumer Protection Bureau of Consumer Protection Division of Advertising Practices Division of Advertising Practices ·Priorities include ·Priorities include monitoring and developing effective monitoring and reporting on industry enforcement strategies for new advertising practices regarding the marketing of techniques and media violent movies,music,and electronic games -monitoring and reporting on advertising food to children to children,including practices by food monitoring and reporting on alcohol and companies and the media on childhood tobacco marketing practices obesity Dannon's popular Activia brand yogurt lured consumers into Bureau of Consumer Protection e9arecas actually pretty much the same as Division of Advertising Practices every other kind of yogurt Develops,reviews,and enforces consumer protection laws,regulations,and Guides including dietary supplement guides When consumers raised questions about what was actually seasoning Coordinates and addresses current consumer Taco Bell's seasoned beef,the protection issues with state,federal,and company didn't know how to respond. international law enforcement agencies Provides guidance to litigators within the It was simply using oat filler--which Bureau of Consumer Protection on bankruptcy- means the meat isn't seasoned beef at all,according to USDA standards. related issues
3/21/2017 5 Bureau of Consumer Protection Division of Advertising Practices • Priorities include - monitoring and developing effective enforcement strategies for new advertising techniques and media - monitoring and reporting on advertising food to children, including practices by food companies and the media on childhood obesity Bureau of Consumer Protection Division of Advertising Practices • Priorities include - monitoring and reporting on industry practices regarding the marketing of violent movies, music, and electronic games to children - monitoring and reporting on alcohol and tobacco marketing practices Dannon's popular Activia brand yogurt lured consumers into paying more for its purported nutritional benefits -- when it was actually pretty much the same as every other kind of yogurt When consumers raised questions about what was actually seasoning Taco Bell's seasoned beef, the company didn't know how to respond. It was simply using oat filler -- which means the meat isn't seasoned beef at all, according to USDA standards. Bureau of Consumer Protection Division of Advertising Practices • Develops, reviews, and enforces consumer protection laws, regulations, and Guides including dietary supplement guides • Coordinates and addresses current consumer protection issues with state, federal, and international law enforcement agencies • Provides guidance to litigators within the Bureau of Consumer Protection on bankruptcyrelated issues