Year established: 1914


What led up to the creation:
There was common cheating and scamming in businesses which kept impacting the public and the economy.

What is the purpose:
 Empowers the agency to investigate and prevent unfair methods of competition, and unfair or deceptive acts or practices affecting commerce.  President Woodrow Wilson signed the Federal Trade Commission Act into law.  Most times the customers are paid a refund or the business has to pay the government a fine. Lawsuits are also a common consequence.

How it affects businesses:
This affects businesses because it could lead to higher prices, fewer choices, or less innovation.

How it affects employees:
This policy protects employees from working in fake businesses and projects from getting into legal problems. 

How it affects consumers:
This policy positively consumers because this policy makes sure consumers don't get scammed with wrong prices or low quality products. 

Revisions: 
This policy was revised and more regulations were added like now there is a penalty for False representations of businesses, Misleading Price claims,  Sales without adequate disclosure, bait and switch techniques, failure to honor and legally registered business. 

Links to three (3) court cases that have involved this agency, policy, law, or regulation:
1.https://www.ftc.gov/enforcement/cases-proceedings/x200041-202-3127/traffic-jam-events-llc-matter
 A marketer from traffic jam events LLC was charged against deceptive conduct for never having a registered business but running it illegally. He was charged to pay a fine of $15,600. 

2. https://www.ftc.gov/enforcement/cases-proceedings/202-3089/inmate-magazine-service-inc
Inmate magazine services scammed prisoners and families in the state of Florida. They asked money from family for the prisoner to be on the magazine and for their story to be heard. They were never a registered company and never printed any stories or magazines. 

3. https://www.ftc.gov/enforcement/cases-proceedings/192-3060/vivint-smart-home-inc
Smart home security system misused credit reports to help unqualified customers gain financing for the companies products and services. They also had to pay a fine but price wasn't disclosed. 

Sources (links): 
 “Federal Trade Commission Act – Prohibiting Unfair Trade Practices.” Debt.org, 17 June 2020, https://www.debt.org/credit/your-consumer-rights/federal-trade-c ommission-act/. 

“A Brief Overview of the Federal Trade Commission's Investigative, Law Enforcement, and Rulemaking Authority.” Federal Trade Commission, 17 Nov. 2021, https://www.ftc.gov/about-ftc/what-we-do/enforcement-authority. 

“FTC Publishes Inflation-Adjusted Civil Penalty Amounts.” Federal Trade Commission, 14 Jan. 2020, https://www.ftc.gov/news-events/press-releases/2020/01/ftc-publi shes-inflation-adjusted-civil-penalty-amounts. 

“Cases and Proceedings.” Federal Trade Commission, 14 June 2021, https://www.ftc.gov/enforcement/cases-proceedings?page=2. 

2. Integrity Staffing Solutions, Inc. v. Busk :
-  Integrity Staffing Solutions makes their workers go through a security check at the end of the day, when they leave, that could take around 10 to 15 minutes that workers were not payed for. | Court ruled that they did not brake FLSA and did not have to pay the workers for the time spent under the security check.

3.Encino Motorcars, LLC v. Navarro : 
- Navarro a service advisor was meant to do several jobs ranging from fixing cars along with conversing with customers about cars, prices, questions and more. Navarro says that Encino Motorcars failed to pay him overtime. | Court ruled that Encino Motors did not fail to pay him overtime since service men primarily in servicing automobiles are exempt from the overtime requirements. 

Sources (links):
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What led up to the creation: 
The Fair Packaging And Labeling Act was developed because of the unfair packaging of household consumer products by manufacturers. Manufacturers were free to misstate information of products, such as the identity and the ingredients, on the product’s label, putting consumers at risk. As a result, the Fair Packaging And Labeling Act was passed by President Johnson.  

What is the purpose: 
It was developed to require manufacturers to disclose information completely and truthfully through packaging and labeling and to ensure that consumers are given the correct information to make price and quantity comparisons between products from different brands.

How it affects businesses: 
The Fair Packaging And Labeling Act directly affect the business as they are required to mark products with identity, net quantity of contents, and name and place of the manufacture. Manufacturers are also required to state the actual weight of the usable product, total net weight including usable and unusable portions, and other required information according to the laws of individual states. Manufacturers have restrictions on marketing methods as their labels should state accurate information about what’s advertised. All products sold within the country also should follow labeling requirements set by governing agencies. For example, products containing food should follow the labeling requirements of the Food & Drug Administration.

How it affects employees: 
Employees should correctly label products according to what's included in the package. They also need to be aware not to mistakenly include things not stated on the label that would put the consumers at risk.

How it affects consumers: 
Congress passed the Fair Packaging And Labeling Act to protect the consumers by requiring manufacturers to truthfully label products. As a result, consumers are more likely to purchase products with complete information rather than products with false or few information.

Revisions:
The Fair Packaging And Labeling Act was revised in 1992 to include the metric labeling requirement.

Bunn, Phyllis. “Fair Packaging and Labeling Act of 1966 | Encyclopedia.Com.” Encyclopedia.Com, www.encyclopedia.com/finance/finance-and-accounting-magazines/fair-packaging-and-labeling-act-1966. Accessed 6 Dec. 2021.

“Fair Packaging and Labeling Act (FPLA).” Compliance Online, 16 Aug. 2011, www.complianceonline.com/fair-packaging-and-labeling-act-fpla-background-summary-of-provisions-and-recent-amendments-12390-prdad. 

“Fair Packaging and Labeling Act Regulations.” Office of Information and Regulatory Affairs (OIRA), www.reginfo.gov/public/do/eAgendaViewRule?pubId=201504&RIN=3084-AB33. Accessed 6 Dec. 2021.

FindLaw. “FindLaw’s United States Supreme Court Case and Opinions.” Findlaw, caselaw.findlaw.com/us-supreme-court/430/519.html. Accessed 6 Dec. 2021.

National Agricultural Law Center. “Case Law Index: Food Labeling.” National Agricultural Law Center, 10 Dec. 2020, nationalaglawcenter.org/aglaw-reporter/case-law-index/food-labeling. 

“Packaging and Labeling.” National Institute of Standards and Technology (NIST), 2 Aug. 2021, www.nist.gov/pml/weights-and-measures/laws-and-regulations/packaging-and-labeling.

The Consumer Product Safety Commission (CPSC) was established in 1972 with the passage of the Consumer Product Safety Act.

 

In 1967 the National Commission on Product Safety was established. It was believed at that time that federal consumer safety legislation was ineffective because it took a small approach, targeting only specific products for regulation. On the basis of their inquiry, the commission recommended the creation of an independent federal regulatory agency and a presidential appointee to the commission to serve as a consumer advocate before the new agency → The commission also recommended that the new agency have the authority to issue safety regulations and standards. Thus, the Consumer Product Safety Commission was created in 1972.

 

The CPSC promotes the evaluation of consumer products for potential hazards, establishes uniform safety standards for consumer products, eases conflicting state and local regulations concerned with consumer safety, works to recall hazardous products from the marketplace, and selectively conducts research on potentially hazardous products.

 

After researching, I realized that a company's decision not to conduct a recall, given its knowledge of a product that could pose a hazard to the health of its consumers, hinders its reputation, sales and increases expenses with payments of indemnities for harmed consumers. It is important that a company follows the rules and regulations set by the  U.S. Consumer Product Safety Commission. 

 

If you are a manufacturer, importer, distributor, or retailer of consumer goods, all of your products must comply with the CPSIA and other laws enforced by the CPSC. They must take extra precautions in order to make sure they are following proper protocols or it can result in job loss and further consequences.

 

The Consumer Product Safety Commission (CPSC) protects the public from unreasonable risks of serious injury or death from thousands of types of consumer products under its jurisdiction, including products that pose a fire, electrical, chemical, or mechanical hazard or can injure children.

 

Revisions:

The latest revision of this commission is the Consumer Product Safety Improvement Act (CPSIA). This law amended CPSA in 2008 to provide CPSC with significant new regulatory and enforcement tools. CPSIA addresses, among other things, lead, phthalates, toy safety, third-party testing and certification, imports, ATVs, civil and criminal penalties. It also repeals a funding limitation on the number of CPSC commissioners.

 

1.

2. https://www.cpsc.gov/Recalls/2022/Amazon-Recalls-AmazonBasics-Mattresses-Due-to-Violation-of-Federal-Flammability-Standard-Recall-Alert

3.

 

Bortoli, Luiza Venzke, and Valeria Freundt. “Effects of Voluntary Product Recall on Consumer's Trust.” BBR. Brazilian Business Review, Fucape Business School, www.scielo.br/scielo.php?script=sci_arttext&pid=S1808-23862017000200204.

 

Editorial, Inc. “Consumer Product Safety Commission (CPSC) - Encyclopedia - Business Terms.” Inc.com, Inc., 30 Nov. -1, www.inc.com/encyclopedia/consumer-product-safety-commission-cpsc.html.

 

“Information Quality Guidelines.” U.S. Consumer Product Safety Commission, www.cpsc.gov/Research--Statistics/Information-Quality-Guidelines.

 

Nath, Trevir I. “How Do Recalls Affect a Company?” Investopedia, Investopedia, 18 Nov. 2021, www.investopedia.com/articles/investing/010815/how-do-recalls-affect-company.asp.

 

“Recalls.” U.S. Consumer Product Safety Commission, www.cpsc.gov/Recalls.

 

“Who We Are - What We Do for You.” U.S. Consumer Product Safety Commission, www.cpsc.gov/Safety-Education/Safety-Guides/General-Information/Who-We-Are---What-We-Do-for-You#:~:text=CPSC%20works%20to%20reduce%20the,would%20adequately%20protect%20the%20public&text=conducting%20research%20on%20potential%20product%20hazards. 

 

2.https://www.epa.gov/nutrientpollution/effects-economy

3.https://www.bbc.co.uk/bitesize/guides/z7nr382/revision/2

Sources (links):

“Science Inventory | US EPA.” EPA, Environmental Protection Agency, 26 Feb. 2014, cfpub.epa.gov/si/si_public_record_report.cfm. 

EPA, Environmental Protection Agency, www.epa.gov/laws-regulations. 

EPA, Environmental Protection Agency, www.epa.gov/history/origins-epa#:~:text=Administrator%20Ruckelshaus%20was%20confirmed%20by,of%20EPA%20in%20July%201970. 

“Local Economic Impacts of Climate Change.” EPA, Environmental Protection Agency, 29 Nov. 2016, 19january2017snapshot.epa.gov/statelocalclimate/local-economic-impacts-climate-change_.html. 

“{{Meta.pagetitle}}.” {{Meta.siteName}}, www.oyez.org/cases/2006/05-1120. 

OSHA was established in 1971 when the Occupational Safety and Health Act of 1970 passed. 

What led up to the creation:

The Occupational Safety and Health Administration was established in response to the rapidly increasing concern of safety issues and disability rates due to unsafe working environments in the United States. At the time when the act was being considered, 14,000 people were dying each year due to injuries from their job while disabilities increased 20% during the decade.

What is the purpose:

It was created in hopes of decreasing those rates and making different workplace environments safer by placing safety policies.

How it affects businesses:

OSHA has mandatory regulations that businesses must follow at all times. It helps increase safety for businesses which leads to less compensation for workplace injuries. If a business fails to follow OSHA’s regulation, they are fined a certain amount or even jail time depending on how severe the aftermath was. 

How it affects employees:

Under OSHA’s regulations, employees are protected from whatever workplace environment they decide to work in. OSHA not only provides them a safe environment, but also goes into workers rights and preventive equipment.

How it affects consumers:

It helps reduce some of the prices of products since OSHA prevents workplace accidents or deaths which lets businesses spend less on compensating workplace deaths or injuries. It also lets consumer now that the businesses in which supply their products provide safe environments for their workers.

Revisions: OSHA recently has made around 14 revisions in 2019 under the OSHA's Standard Improvement Project. The new revisions were to increase worker safety and outdated or old regulations for various fields like construction and maritime.  There were other reversions made in 1998, 2005, and 2011.

Links to three (3) court cases that have involved this agency, policy, law, or regulation:

1. LLC v OSHA (2021) - Biden passed a COVID vaccine mandate that required private businesses to vaccinate their employees if there are more than 100 employees. The mandate is considered illegal which is why Biden passed it through OSHA by stating it was concerning workplace safety. The Liberty Justice System and the Pelican Institute for Public Policy are filing a suit to stop the mandate as they believe that OSHA is overstepping their authority limits. They believe that as covid is a societal problem rather than a workplace safety issue and that the number of employees isn’t important compared to other factors. A decision still hasn’t been made yet as the case is still open. 

2. Chao v. Mallard Bay Drilling, Inc. - An explosion on Mallard Bay Drilling Rig 52 left multiple people killed and injured. The Coast Guard didn’t find anything wrong upon investigation but OSHA fined the company for failing to follow safety procedures. The company brought the issue to court saying how OSHA didn’t have authority over Coast Guard or that jurisdiction and that Rig 52 wasn’t classified as a workplace for OSHA rules to be applied there. The decision ended up in OSHA’s favor as the judges stated that OSHA does have that power from the Occupational Safety and Health Administration Act and is able to give out citations to uninspected vessels nationwide where there is less Coast Guard regulation

3. Original Roofing Co v Chief Administration Officer of Occupational Safety & Health Administration (2019) - NOSHA (Nevada Occupational Safety and Hazard Administration) cited TORC for violating federal safety regulations when an inspector noticed two workers, one who was an inspector, work on steel roofs without any standard fall protection. The inspector was about to cite the supervisor until the supervisor blamed the company for knowing about the lack of protection. The inspector would then fine TORC. NOSHA provided that there wasn’t enough info to conclude that TORC actually knew of these violations and citations just because one of their employees violated them. NOSHA ended up reversing the district office’s decision.

Sources (links):