The Federal Trade Commission filed suit against Gateway Learning Corp.The FTC alleged that Gateway committed unfair and deceptive trade practices.It has been selling customer information without informing customers of this fact.This is an example of the FTC using _____ power.

Question

Quizplus · Accepted Answer

The FTC's use of its power to file a lawsuit against Gateway Learning Corp. for engaging in unfair and deceptive trade practices reflects the agency's coercive power. Coercive power involves the ability to use threats or sanctions to force compliance with regulations, laws, or other standards. Here, the FTC is using the threat of legal action to force Gateway to stop selling customer information without informing customers.

The Federal Trade Commission Filed Suit Against Gateway Learning Corp