Which statement about the Federal Trade Commission is NOT true?

• A. The FTC exists to protect consumers from deceptive business practices.
• B. The FTC was created through the passage of The Federal Trade Consumer Act of 1918.
• C. The FTC is comprised of five commissioners appointed by the president.
• D. The FTC exists to protect consumers from unethical business practices.

Answer: (B)

The statement that isn’t true centers on when the FTC was created. The Federal Trade Commission was established by the Federal Trade Commission Act in 1914, not in 1918. That wrong year makes this option inaccurate. The FTC’s real mission is to protect consumers from deceptive acts or practices and unfair methods of competition, which aligns with statements about protecting consumers from deceptive practices. The FTC is indeed a five-member commission appointed by the president (with Senate confirmation) and operates with a structure designed to maintain balance. While the term “unethical” is informal, the idea of guarding against unfair or deceptive practices matches the agency’s legal mandate.