Unfair or Deceptive Trade Practices

Statute: 15 USC §§ 45 (generally) and 57a (financial institutions).

Regulation: 12 CFR 227 (Reg. AA)

FTC Regulations: 16 CFR § 0.1 (general authority); 16 CFR Parts 238 (Bait Advertising), 239 (Advertising of Warranties and Guarantees), 251 (Use of the Word “Free”), 255 (Use of Endorsements and Testimonials in Advertising), 310 (Telemarketing Sales – see Section 4.2), 433 (Preservation of Consumer Claims and Defenses) and 444 (Credit Practices).

UDTP Purpose: Federal law makes unfair or deceptive business practices illegal. The Federal Trade Commission (FTC) enforces this prohibition by adopting credit practice rules describing what are unfair or deceptive practices and by taking action against persons it believes are engaging in unfair or deceptive behavior.