Wheeler–Lea Act
The Wheeler–Lea Act of 1938 is a
civil penalties for violations of Section 5 orders.[1] It also added a clause to Section 5 that stated "unfair or deceptive acts or practices in commerce are hereby declared unlawful" to the Section 5 prohibition of unfair methods of competition in order to protect consumers as well as competition.[2]
Until this amendment was passed, the Federal Trade Commission could only restrict practices that were unfair to competitors. This broadened the FTC's powers to include protection for consumers from false advertising practices.[3]
References
- ^ a b "Federal Trade Commission - FTC Turns 100". Archived from the original on 2011-07-21. Retrieved 2011-02-20.
- JSTOR 1189730.
- ^ "The Wheeler-Lea Act". Federal Trade Commission. 26 June 2015.
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