From the course: CIPP/US Cert Prep: 1 U.S. Privacy Environment
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Unfair and deceptive trade practices
From the course: CIPP/US Cert Prep: 1 U.S. Privacy Environment
Unfair and deceptive trade practices
- The Federal Trade Commission is authorized to bring federal enforcement action against any company that engages in unfair or deceptive trade practices. While we all might have our own internal definitions of fairness and honesty, it's important to understand that the terms unfair and deceptive have very specific definitions in the law. First, understand that unfair and deceptive are two different terms, with two different definitions. A practice can be unfair, without being deceptive. It can be deceptive, without being unfair. Or it could be both, unfair and deceptive. The FTC is authorized to bring enforcement action against any of those cases. Let's begin with a definition of unfair practices. There are three requirements for a practice to be considered unfair. First, the practice must cause, or be likely to cause substantial injury to customers. There must be some kind of substantial harm involved. Second, the…
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