December 23, 2013

In my never ending pursuit of federal agencies that should be abolished for incompetent managerial practices I now add the Federal Trade Commission.

Apparently none of the five commissioners (all well connected lawyers whose firms have active lobbying practices) ever watch the evening news on TV or listen to drive-time radio. Most sponsors of the evening news shows are drug companies inundating the publicly owned airwaves to promote “new breakthrough” drugs with a list of mind-boggling side effects. Radio is replete with ads promising to: a) refinance your mortgage at no cost, b) cure your impotence, c) help you fight the IRS, and, d) my all-time favorite in the NYC market, buy low-cost term life insurance from a broker called “Big Lou”.

I have two questions: 1) Where is the FTC in all this inaccurate and misleading advertising? 2) What ever happened to ‘Truth in Advertising’ which the media management was supposed to enforce?

Answer to both: Corporate Profit, Personal Greed and Job Preservation overtook their societal responsibility.

The following statement, copied verbatim from the FTC web site purports to be their mission:

When consumers see or hear an advertisement, whether it’s on the Internet, radio or television, or anywhere else, federal law says that ad must be truthful, not misleading, and, when appropriate, backed by scientific evidence. The Federal Trade Commission enforces these truth-in-advertising laws, and it applies the same standards no matter where an ad appears – in newspapers and magazines, online, in the mail, or on billboards or buses. The FTC looks especially closely at advertising claims that can affect consumers’ health or their pocketbooks – claims about food, over-the-counter drugs, dietary supplements, alcohol, and tobacco and on conduct related to high-tech products and the Internet, such as the dissemination of spyware. The FTC also monitors and writes reports about ad industry practices regarding marketing of food, violent movies, music, and electronic games to children.

When the FTC finds a case of fraud perpetrated on consumers, the agency files actions in federal district court for immediate and permanent orders to stop scams; prevent fraudsters from perpetrating scams in the future; freeze their assets; and get compensation for victims.

Violent movies?  Electronic games sold to children?  Stop scams?

Maybe these five commissioners are unable to watch the news or monitor their kids’ game selections because they spend most of their time on airplanes travelling to foreign countries giving speeches on consumer protection and unfair competition.  FYI: They employ 1,200 people and enjoy a budget of $300 Million.