A "trade regulation rule" issued by the FTC that applies to a specific business practice sets a standard:
A) that everyone in the industry must follow or be subject to criminal conviction
B) for certain practices that are thought to be especially susceptible to deceptive acts
C) after a violation is proven the FTC can close down the violator's business
D) is voluntary but provides quality guidance for the industry
E) must be agreed upon by a majority of the members of the industry to become law

Question

Quizplus · Accepted Answer

A trade regulation rule issued by the FTC sets a standard for certain practices that are thought to be particularly susceptible to deceptive acts, and businesses that engage in those practices must follow the rule or face potential enforcement actions by the FTC. The rule is mandatory, not voluntary, and does not require agreement by the industry to become law. Criminal conviction and business closure are possible outcomes if a business violates the rule, but these are not automatic consequences.

A "Trade Regulation Rule" Issued by the FTC That Applies