Future Business Leaders of America (FBLA) Business Management Practice Test

Which act focuses on false advertising practices?

1. Food, Drug, and Cosmetic Act

2. Clayton Act

3. Sherman Act

4. Wheeler-Lea Act

The correct answer is: Wheeler-Lea Act

The Wheeler-Lea Act is focused on false advertising practices as it aims to protect consumers from misleading or deceptive marketing. This act, passed in 1938, amended the Federal Trade Commission Act by prohibiting false or misleading representations in advertising. It specifically gives the Federal Trade Commission authority to regulate advertising practices and ensure that businesses do not use deceptive methods to promote their products or services. This is crucial for maintaining fair competition in the market and protecting consumer rights by ensuring that advertisements reflect the true nature and quality of a product. This act is particularly significant because it extends the FTC's jurisdiction beyond just preventing unfair methods of competition to also encompass false advertising, thereby providing a broader scope for consumer protection in the marketplace.