What Is the Federal Trade Commission (FTC)?

By Anders Bylund – Updated Sep 14, 2025 at 10:05 PM

Key Points

FTC helps ensure fair business practices and consumer protection in the U.S. economy.
Understanding FTC actions can guide your investments by monitoring legal changes.
The FTC can legally pursue firms that deceive or exploit consumers, impacting investment safety.

The Federal Trade Commission (FTC) plays a vital role in the U.S. economy. But what is it exactly, and why should you care about this government agency? Read on to learn all about the FTC, an independent agency of the U.S. government.

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The official seal of the Federal Trade Commission (FTC). — Image source: Federal Trade Commission, 2008 annual report.

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The FTC's mission is protecting the public from deceptive or unfair business practices and from unfair methods of competition through law enforcement, advocacy, research, and education.
The Federal Trade Commission

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President Barack Obama addresses the FTC on Jan. 15, 2015. — The Federal Trade Commission (ftc.gov). President Barack Obama addresses the FTC on January 15, 2015. The topic of the day was privacy protection in cyberspace. This was the first Presidential visit to the FTC's offices since 1937.

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About the Author

Anders Bylund is a contributing Motley Fool media and technology analyst covering semiconductors, cloud computing, internet infrastructure, quantum computing, and streaming media. Previously, Anders was a systems administrator for Nielsen Technology and CSX, gaining hands-on experience with enterprise-class systems. He was also a freelance writer for Ars Technica, TIME, USA Today, CNN, WIRED, and AOL's Daily Finance. He holds a bachelor’s degree in English and a master’s degree in library and information sciences from Florida State University. He believes in coyotes and time as an abstract.

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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.