The Wheeler–Lea Act of 1938 is a

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

federal law Federal law is the body of law created by the federal government of a country. A federal government is formed when a country has a central government as well as regional governments, such as subnational states or provinces, each with constituti ...

that amended Section 5 of the Federal Trade Commission Act to proscribe "unfair or deceptive acts or practices" as well as "unfair methods of competition." It provided

civil penalties A civil penalty or civil fine is a financial penalty imposed by a government agency as restitution for wrongdoing. The wrongdoing is typically defined by a Codification (law), codification of legislation, regulations, and decrees. The civil fine ...

for violations of Section 5 orders. It also added a clause to Section 5 that stated "unfair or deceptive acts or practices in commerce are hereby declared unlawful" to the Section 5 prohibition of unfair methods of competition in order to protect consumers as well as competition. Until this amendment was passed, the

Federal Trade Commission The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) United States antitrust law, antitrust law and the promotion of consumer protection. It ...

could only restrict practices that were unfair to competitors. This broadened the FTC's powers to include protection for consumers from false advertising practices.

References

1938 in American law Advertising in the United States United States federal antitrust legislation United States federal trade legislation {{US-fed-statute-stub