Which federal act prohibits deceptive or unfair trade practices?

• A. Fair Credit Reporting Act
• B. Gramm-Leach-Bliley Act
• C. Federal Trade Commission Act
• D. Health Insurance Portability and Accountability Act

Answer: (C)

The fundamental idea is that consumer protection against false or misleading business practices is enforced through a federal statute that created the agency charged with policing those practices. The Federal Trade Commission Act establishes the FTC and gives it authority to prohibit unfair or deceptive acts or practices in commerce. This UDAP standard covers false advertising, misrepresentation, and other unfair methods used in selling goods and services.

The other acts address different topics: the Fair Credit Reporting Act governs the accuracy and privacy of consumer credit reports; the Gramm-Leach-Bliley Act focuses on financial privacy and data safeguards for financial institutions; and the Health Insurance Portability and Accountability Act protects privacy and security of health information.