Blog
The FTC Bureau of Consumer Protection’s Enforcement Role
The FTC’s Bureau of Consumer Protection – Your Buddy Against Scams
You ever get annoyed by spam calls from “the credit card department”, or see crazy diet ads that seem too good to be true? Well, you’re not alone my friend. Tons of shady businesses try to scam us or take advantage of consumers. Luckily, the Federal Trade Commission’s Bureau of Consumer Protection has our backs. They work hard to crack down on scams, false advertising, identity theft – you name it. Let me break down what these consumer heroes do.
What is the Bureau of Consumer Protection?
The Bureau is a division within the Federal Trade Commission (FTC) that focuses on protecting consumers from unfair, deceptive, or fraudulent business practices. They enforce a bunch of laws that give them power to investigate shady companies and sue the pants off businesses that break the rules. The big ones are:
- Federal Trade Commission Act
- Telemarketing Sales Rule
- Identity Theft Act
- Fair Credit Reporting Act
- Clayton Act
You don’t need to memorize these, just know the Bureau has legal muscle to hold companies accountable for ripping people off.
How the Bureau Protects Folks Like Us
The Bureau uses a few key strategies to watch our backs:
- Collecting complaints from consumers about fraud, identity theft, false ads – you can submit a complaint online or by phone. More on that later!
- Investigating companies based on these complaints and gathering evidence.
- Suing companies that break consumer protection laws. The Bureau can get courts to make companies pay big fines or refunds when they violate the law. Cha-ching!
- Making new rules to maintain fairness and ban shady practices. For example, they created rules to crack down on obnoxious robocalls1.
- Educating consumers and businesses on how to avoid scams and follow consumer protection laws. They have tons of helpful scam alerts and videos on their website2.
The Bureau has divisions that focus on key issues like privacy protection, financial practices, and advertising. For example, the Division of Privacy and Identity Protection targets scams exploiting personal info. They also have regional offices across the country to keep an eye on local issues3.
How Investigations Work
When you or I submit a complaint about a potential scam or false ad, the Bureau reviews the complaints and decides if they should open an official investigation.The Division of Enforcement then gathers evidence by looking at the company’s marketing, calling their customer service lines, etc. If they find illegal practices, they can take the company to court. The court can order the company to pay refunds to all the folks who got ripped off! Justice is served.
Lawsuits and Penalties
When an investigation uncovers serious violations of consumer protection laws, the Bureau often sues the company. In 2021, they sued a debt collection company that was harassing and threatening consumers. The court ordered that company to pay $24 million in refunds and penalties! #micdropIf a company already got sued once, but keeps violating the law, the Bureau will take them back to court for violating the court orders. These repeat offenders can get hit with massive fines.
Getting Refunds to Consumers
When shady companies have to pay refunds or redress, the Bureau tries to get that money back to the specific people who got scammed or ripped off. For example, after a case against a bogus credit repair scheme, over 21,000 people got refunds totaling $18 million4.If refunds can’t go directly to individuals, the money may go to the U.S. Treasury or a consumer education organization instead. The point is that the money benefits consumers harmed by the company’s actions.
Educating Us to Avoid Scams
A big part of the Bureau’s mission is educating all of us about consumer rights and how to spot scams before they steal our money. They publish tons of scam alerts, blog posts, videos, and social media updates with tips. For example, I definitely follow their Facebook page for news on the latest schemes and how to protect myself2.They also want to help honest businesses understand how to follow consumer laws. The Bureau’s Business Center website has guidance on topics like advertising and privacy rules3. Most companies want to follow the law – they just need some help navigating it.
Partnering with Other Agencies
The Bureau partners with the FBI, Department of Justice, state Attorneys General, and local law enforcement on joint investigations and cases. By working together, they can take down more baddies and maximize resources3.For example, the Bureau shares the complaints they get with agencies across the U.S. and internationally. This helps law enforcement spot patterns and build cases against scammers. Teamwork makes the dream work!
What You Can Do
If you spot an unfair or deceptive business practice, report it to the Bureau! Submit a complaint online or by phone – your complaint can trigger an investigation.Also, learn how to recognize scams and your consumer rights. Check out the Bureau’s free resources like videos and scam alerts. Sign up for email updates and follow their social media pages for tips2.The bottom line is that the Bureau of Consumer Protection has your back against shady schemes. Next time you see a FTC warning about a scam, say thanks – they’re working hard to protect your wallet!References:
- A Brief Overview of the Federal Trade Commission’s Investigative, Law Enforcement, and Rulemaking Authority (Federal Trade Commission)
- Consumer Information (Federal Trade Commission)
- About the Bureau of Consumer Protection (Federal Trade Commission)
- FTC Sends More Than $18 Million in Refunds to Consumers Harmed by Bogus Credit Repair Scheme (Federal Trade Commission)