Future Business Leaders of America (FBLA) Advertising Practice test

Which agency is responsible for enforcing truth in advertising laws?

1. FDA

2. FTC

3. SEC

4. FCC

The correct answer is: FTC

The Federal Trade Commission (FTC) is the agency responsible for enforcing truth in advertising laws. Its primary role is to protect consumers by ensuring that advertisements are truthful and not misleading. The FTC oversees various aspects of advertising, including deceptive practices and unfair competition, by setting guidelines that businesses must follow when preparing their marketing materials. This agency investigates complaints about false advertising, promotes consumer education regarding advertising practices, and takes action against companies that violate these laws. Other agencies have specific regulatory roles in different contexts; for instance, the Food and Drug Administration (FDA) oversees the marketing of food, drugs, and cosmetics but does not handle broader advertising truthfulness. The Securities and Exchange Commission (SEC) regulates the securities industry and focuses on maintaining fair and efficient markets, while the Federal Communications Commission (FCC) primarily regulates interstate and international communications. As such, while all these agencies play critical roles in their respective domains, the responsibility for truth in advertising falls squarely on the shoulders of the FTC.