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The Federal Trade Commission or FTC is an agency of the United States that was set up by President Woodrow Wilson's Federal Trade Commission Act of 1914 to maintain free and fair competition. It's main mandate is to enforce federal antitrust laws and protect consumers against deceptive or fraudulent practices.
Division of Marketing Practices
The FTC's Division of Marketing Practices is responsible for the regulation and enforcement of the franchise industry. Its duties include issuance, revision and enforcement of the Franchise and Business Opportunity Rule, which requires sellers of franchises and business opportunities to give prospective buyers a disclosure containing specific information about the business and any earnings claims that are made, to help them evaluate the value of the franchise.
The Division enforces federal consumer protection laws by filing actions in federal district court on behalf of the Commission to stop franchisor scams.
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