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FTC Competition How Comp Works
FTC Competition How Comp Works
FTC Fact Sheet: How Competition Works
practices that could result in higher prices, • Find a story in the news about a
lower quality, fewer products or services competition issue in the marketplace.
for consumers, or those that create unfair What does the industry say about it?
advantages in the marketplace. The FTC What does the government say about it?
has lawyers and economists who monitor What do you think?
business practices, review potential mergers,
and challenge conduct that might prevent
consumers from getting choice and quality at Want to Find Out More?
a fair price. They make sure the marketplace Federal Trade Commission—Guide to the
works according to consumer preferences, not Antitrust Laws
illegal or anti-competitive practices. www.ftc.gov/bc/antitrust
When the competitive system is operating well, U.S. Department of Justice—Antitrust Division
there’s no need for government intervention. www.usdoj.gov/atr
The law knows that some arrangements
between firms—like competitors cooperating Kids.gov—Links to sites on money, selling,
to perform joint research and development and marketing
projects—may be good for consumers. In these www.kids.gov/6_8/6_8_money_selling.shtml
cases, the agreement may even lead to greater
American Antitrust Institute—Fair Fight in the
competition.
Marketplace (Video and resources)
The law doesn’t try to stop all agreements www.fairfightfilm.org/index.html
between companies. It disapproves of
agreements that hurt competition—for National Council on Economic Education—
example, that could raise prices for consumers Online lessons
or keep them from getting new and better www.ncee.net/resources/lessons.php
products. When the FTC sees practices
or merger proposals that could harm the
consumer or competition itself, the staff acts
quickly to protect the interests of American
consumers.