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How does the FTC decide what cases to bring?
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The FTC weighs several factors, including:
FTC jurisdiction. Although the FTC has jurisdiction over
ads for most products and services, Congress has given
other government agencies the authority to investigate
advertising by airlines, banks, insurance companies,
telephone and cable companies, and companies that sell
securities and commodities.
The geographic scope of the advertising campaign. The FTC
concentrates on national advertising and refers local
matters to state, county or city agencies.
The extent to which an ad represents a pattern of
deception, rather than an individual dispute between a
consumer and a business or a dispute between two
competitors. State or local consumer protection agencies or
private groups such as the Better Business Bureau (BBB)
often are in a better position to resolve disputes
involving local businesses or local advertising. To get the
address and phone number of your state attorney general's
office, your local consumer agency, or the nearest BBB,
check your telephone directory or the Consumer's Resource
Handbook.
The amount of injury -- to consumers' health, safety, or
wallets -- that could result if consumers rely on the
deceptive claim. The FTC concentrates on cases that could
affect consumers' health or safety (for example, deceptive
health claims for foods or over-the-counter drugs) or cases
that result in widespread economic injury.
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