FTC Consumer Protection Orders: The Case For A New Sunset Policy

Executive Summary

In contemplating the creation of the Federal Trade Commission, President Woodrow Wilson declared that the era of "antagonism between business and government is over" and described an agency that would serve as an advisor to businesses regarding anti-competitive conduct. In line with this vision, Congress signed the Federal Trade Commission Act of 1914, granting the newly formed FTC broad substantive authority to define anti-competitive practices, but only one way to enforce that authority: an administrative cease-and-desist order that businesses could effectively violate without penalty.

Since then, the FTC—along with its substantive regulatory and enforcement authority—has evolved and expanded significantly. The FTC can now seek consumer redress, impose penalties for order violations, and create rules that provide a path for monetary relief. Moreover, in the past 20 to 30 years, the FTC has increasingly resolved disputes not through