Section 5 of the FTC Act

Section 5 of the Federal Trade Commission (FTC) Act prohibits unfair or deceptive practices in commerce. This means businesses must be honest and transparent with consumers; they cannot mislead, cheat, or unfairly harm consumers or competitors. The FTC uses this law to investigate and stop false advertisements, deceptive sales tactics, and other unfair business behaviors, ensuring fair competition and protecting consumer rights. Essentially, it acts as a safeguard against dishonest or unfair business practices in the marketplace.