What does Article 5 of the FTC Act declare unlawful?

Article 5 of the Federal Trade Commission (FTC) Act specifically declares "unfair or deceptive acts or practices in or affecting commerce" as unlawful. This provision serves as a foundational element of the consumer protection framework established by the FTC, allowing the agency to combat misleading advertising and other dishonest business practices that can harm consumers.

The significance of this declaration is that it encompasses a broad range of actions that may mislead or harm consumers, thereby fostering fair competition in the marketplace. The FTC has the authority to investigate and take action against businesses that violate this provision, which includes practices that may not only be intentionally deceitful but also those that are unfair, even if they are not outright deceptive.

Understanding this aspect of the FTC Act is crucial as it highlights the importance of ethical business practices and consumer trust, ensuring that businesses do not engage in behaviors that could compromise consumer rights or create an imbalanced market. This legal framework is vital for protecting individuals in various aspects, including their personal data, but it is fundamentally centered around unfair or deceptive practices rather than purely focusing on data privacy issues or other specific regulations.