Fair Credit Reporting Act (FCRA)

Paul Fling writes:

Fraud, deception, and unfair business practices are problems all companies and consumers are bound to come across. That is where the Federal Trade Commission (“FTC”) comes in. The FTC enforces federal consumer protection laws—in particular, laws focused on preventing fraud, deception, and unfair business practices. Largely, the FTC enforces federal antitrust and other unfair business practice laws to encourage fair competition in the marketplace and to keep consumer prices low.

U.S. Federal Trade Commission Building, Washington, D.C.Put simply, the FTC protects America’s consumers and promotes competition. For example, the FTC credits its anti-competitive antitrust enforcement efforts with improving access to health care—first, by helping prevent anti-competitive agreements that may raise health care prices, and second, by encouraging innovation in health care. Additionally, the FTC shields consumers from internet and telemarketing scams, price-fixing schemes, and even false and deceptive advertising. According to the FTC, its efforts benefit consumers in two crucial areas: their health and their economic well-being.

The FTC enforces over 70 laws. Those laws include acts that are familiar to many companies and consumers, such as the Federal Trade Commission Act, the Telemarketing Sale Rule, the Identity Theft Act, the Fair Credit Reporting Act, and the Clayton Act. However, the FTC has some level of responsibility in enforcing laws in a much wider range of areas, such as trademarks, credit reporting, internet privacy, college scholarship fraud, money lending, underage drinking, and more. With respect to advertising, for example, the FTC keeps an especially close watch on ads regarding food, medications, dietary supplements, alcohol, and tobacco—including monitoring and writing reports that assess alcohol and tobacco marketing practices.

The Federal Trade Commission Act provides the FTC with power to prevent unfair competition and business practices, seek retributions for injuries to consumers, conduct investigations, and make legislative recommendations. Consequently, the FTC enforces many of its wide-reaching laws under the Federal Trade Commission Act. A full list of laws the FTC may enforce and other information regarding FTC enforcement can be found on the FTC’s website.


Paul Fling is a summer associate, based in the firm’s Minneapolis office.