Something often overlooked are the rules and regulations governed by the Federal Trade Commission (FTC). The FTC describes itself in the following manner:
“As a consumer or businessperson, you may be more familiar with the work of the Federal Trade Commission than you think.
Consumers who refer to care labels in their clothes, product warranties or stickers showing the energy costs of home appliances are using information required by the FTC. Businesses must be familiar with the laws requiring truthful advertising or prohibiting price fixing. These laws also are administered by the FTC.
The FTC deals with issues that touch the economic lives of most Americans. In fact, the agency has a long tradition of maintaining a competitive marketplace for both consumers and businesses. When the FTC was created in 1914, its purpose was to prevent unfair methods of competition in commerce as part of the battle to “bust the trusts.” Over the years, Congress passed additional laws giving the agency greater authority to police anticompetitive practices.
In 1938, Congress passed the Wheeler-Lea Amendment, which included a broad prohibition against “unfair and deceptive acts or practices.” Since then, the Commission also has been directed to administer a wide variety of other consumer protection laws, including the Telemarketing Sales Rule, the Pay-Per-Call Rule and the Equal Credit Opportunity Act.
In 1975, Congress passed the Magnuson-Moss Act, which gave the FTC the authority to adopt trade regulation rules that define unfair or deceptive acts in particular industries. Trade regulation rules have the force of law. As you read through this booklet, you will learn about other laws that enable the FTC to help consumers.
The FTC’s work is performed by the Bureaus of Consumer Protection, Competition and Economics. That work is aided by the Office of General Counsel and seven regional offices.”
So what does the FTC have to do with the standard website or eBay business. A lot! There are a series of rules and regulations on place for all Internet based businesses. While many websites do not comply with the requirements, any serious business should plan upfront to incorporate the guidelines as they consider the format of their business and how it will be portrayed to the Internet community. Better to plan in advance than to be served papers for non-compliance.
While not complex in nature, there are a number of things you need to take into consideration in the process of meeting the FTC requirements. A paper has been prepared by the FTC titled “DOTCOM Disclosures.” Please give it a read and make every effort to conform to the requirements of the FTC. For more information for businesses and the FTC’s rules and regulations visit the FTC’s website.