What was the purpose of the Wheeler-Lea Act (1938)?
A)It made deceptive and misleading advertising illegal.
B)It established the Federal Trade Commission.
C)It eliminated monopolies and guaranteed competition.
D)It guaranteed that product packages are labeled correctly.
E)It banned unfair credit card rate increases.

Question

Quizplus · Accepted Answer

The Wheeler-Lea Act was passed to make deceptive and misleading advertising illegal, and thus protect consumers from false or unclear information about a product or service. While the act also amended sections of the FTC Act, it did not establish the Federal Trade Commission, which had already been created in 1914. The act did not focus on eliminating monopolies or ensuring competition, nor did it specifically address labeling of product packages or credit card rate increases.

What Was the Purpose of the Wheeler-Lea Act (1938)