Future Business Leaders of America (FBLA) Advertising Practice test

Which federal agency is responsible for regulating advertising?

1. CPSC

2. FDA

3. USDA

4. FTC

The correct answer is: FTC

The Federal Trade Commission (FTC) is the agency responsible for regulating advertising to ensure it is not misleading or deceptive. The FTC's primary mission is to protect consumers and maintain a competitive marketplace, which includes overseeing various aspects of advertising practices across different industries. It enforces laws that require advertisements to be truthful, not misleading, and substantiated by evidence when necessary. The FTC's role includes monitoring advertising practices, taking action against false advertising, and ensuring that consumers are provided with accurate information about products and services. This helps to foster trust in the marketplace and allows consumers to make informed decisions based on accurate advertising. Other agencies mentioned, such as the Consumer Product Safety Commission (CPSC), Food and Drug Administration (FDA), and United States Department of Agriculture (USDA), have distinct regulatory functions. The CPSC focuses on product safety and consumer protection for products such as toys and appliances. The FDA regulates food, drugs, cosmetics, and medical devices, ensuring their safety and efficacy. The USDA primarily oversees agricultural policies and food safety regulations but does not have a direct role in regulating advertising practices. Overall, the FTC's specific focus on advertising regulation solidifies its position as the principal federal agency in this area.