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Federal Trade Commission Act Section 5: Unfair or ...

Federal Trade Commission ActSection 5: Unfair or Deceptive Acts or PracticesBackgroundSection 5(a) of the Federal Trade Commission Act(FTC Act) (15 USC 45) prohibits Unfair ordeceptive acts or practices in or affectingcommerce. This prohibition applies to all personsengaged in commerce, including banks. TheBoard has affirmed its authority under Section 8 ofthe Federal Deposit Insurance Act to takeappropriate action when Unfair or deceptive actsor practices (UDAP) are March 11, 2004, the Board and the FederalDeposit Insurance Corporation (FDIC) issued ajoint statement (Joint Statement) regarding theagencies responsibilities to enforce the prohibi-tions against Unfair or deceptive Trade practices asthey apply to state-chartered banks.

Federal Trade Commission Act—Section 5 Examination Objectives and Procedures EXAMINATION OBJECTIVES • To determine the adequacy of the bank’s internal

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