Wheeler-Lea Act
Encyclopedia
The Wheeler–Lea Act of 1938 is a United States federal law that amended Section 5 the Federal Trade Commission Act
to proscribe “unfair or deceptive acts or practices” as well as “unfair methods of competition.” . It provided civil penalties for violations of Section 5 orders. 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.
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.
Federal Trade Commission Act
The Federal Trade Commission Act of 1914 started the Federal Trade Commission , a bipartisan body of five members appointed by the president of the United States for seven-year terms. This commission was authorized to issue “cease and desist” orders to large corporations to curb unfair trade...
to proscribe “unfair or deceptive acts or practices” as well as “unfair methods of competition.” . It provided civil penalties for violations of Section 5 orders. 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.
Until this amendment was passed, the Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
could only restrict practices that were unfair to competitors. This broadened the FTC's powers to include protection for consumers from false advertising practices.