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The Federal Trade Commission (FTC) is one of the most unique parts of our government. It has a wide range of powers given by law, which encompass among other things the ability to pass rules and regulations against unfair and deceptive acts or practices. The FTC often issues "guidelines which are no more than notices that they will push for prosecution or civil action against individuals in violation their guidelines. Although these guidelines are often up for public debate, they are not passed by any governing body such as Congress, yet affect us often more than any newly passed law would. While many people see that the FTC is a consumer rights entity within the government, a growing number of people see that the FTC is a part of a growing, overreaching government that is interfering with the ability of businesses and often individuals to conduct business in this market economy.
I'm not claiming that the FTC should NOT prosecute obvious
fraud, where consumers are clearly being scammed - such as not
delivering a product as promised or the mass distribution of
unsafe toys. That being said, the FTC's guidelines and civil
actions are quickly crossing the border of infringing not only
on our ability to do business, but our First Amendment Rights to
Free Speech. The Right to express one's self and opinions,
whether it is political or business related is an inherent part
of our society and the foundations of our business community.
The courts have ruled that advertising is a form of free speech,
which cannot be infringed upon anymore than any other opinion,
written or spoken.
Additionally, more and more the FTC is engaged in the business of deciding what is considered an "authentic or substantiated" claim by an endorser or a product. While they have for the last decade or so, been more involved in cases in which they believe unsubstantiated product claims have been made, they are specifically targeting bloggers - and their opinions. This growing trend is more and more disturbing, as it gives the government the right to make assumptions on the quality and accuracy of claims of businesses - and then in theory, the accuracy of claims of individuals. It asks businesses and bloggers to basically "prove" what they are saying is correct, even if it is an opinion. They must substantiate according to the FTC, all their claims.
This is unique in nature, because it places an undue hardship
often on small businesses and bloggers, who cannot afford to
hire research teams or a huge law firm to assist them in the
creation of their materials. A sole-proprietor who discovers
that perhaps his home-made fig bars have lead to increased
weight loss and energy, in theory, will have to prove and
substantiate his claims before he could buy advertising on
Google that states that these bars can help in weight loss. It
could prevent a small business owner from selling knitted goods
on Ebay, because the claim that they have kept her warmer than
any other coat she owned, might be subject to scrutiny. They
have to worry that the government, the FTC might intervene at
some point and bring action against them based on perception and
supposition. It gives bureaucrats, non-elected officials an
extreme amount of power over small businesses in this Country.
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