Commercial Practices Prohibited by FTC

The video discusses deceptive practices that concern the FTC, focusing on how these practices can create anti-competitive market environments. It explains the FTC's process for determining if a practice is deceptive by evaluating if a reasonable consumer would be misled. The video covers the importance of identifying fraudulent claims, omissions, and their materiality, which could affect consumer decisions. If these elements are present in commercial practices, the FTC may regulate them as deceptive.

What is the primary concern of the FTC regarding deceptive practices?

• To ensure fair pricing

• To regulate advertising content

• To promote new businesses

• To prevent anti-competitive market environments

How does the FTC determine if a practice is deceptive?

• By analyzing the product's price

• By evaluating the company's market share

• By assessing if a reasonable consumer would be misled

• By checking if it violates state laws

What does the FTC consider when evaluating claims about a product?

• Whether claims are knowingly fraudulent or deceptive

• The company's reputation

• The product's manufacturing cost

• The product's popularity

What is meant by 'material' in the context of FTC's evaluation?

• Claims that are about the product's color

• Claims that are only about the product's price

• Claims that relate to the core of the product and affect consumer decisions

• Claims that are minor and irrelevant

When can a commercial practice be regulated or deemed deceptive by the FTC?

• When it involves international trade

• When it applies to any type of commercial practice

• When it is a new product launch

• When it is endorsed by a celebrity