NCJ Number
57901
Date Published
1975
Length
10 pages
Annotation
A FEDERAL TRADE COMMISSION (FTC) REPRESENTATIVE OUTLINES THE AGENCY'S CONSUMER REDRESS-RELATED ACTIVITIES FOR 1974 AND DISCUSSES THE NEED TO IMPROVE MECHANISMS FOR RESOLVING CONSUMER COMPLAINTS.
Abstract
ALTHOUGH THE FTC ACKNOWLEDGES AND CATEGORIZES THE COMPLAINTS, QUESTIONS, AND COMMENTS IT RECEIVES FROM CONSUMERS AND REFERS ITS CORRESPONDENTS TO ONGOING INVESTIGATIONS, LITIGATION, AND OTHER AGENCIES AS APPROPRIATE, THE COMMISSION DOES NOT AND CANNOT FUNCTION AS A MECHANISM FOR RESOLVING PRIVATE CONSUMER DISPUTES. HOWEVER, THE FTC'S COMMITMENT TO DEVELOPING AND IMPLEMENTING INNOVATIVE REMEDIAL APPROACHES, PARTICULARLY IN THE AREA OF CONSUMER PROTECTION, GOES FAR TOWARD BENEFITING MISTREATED CONSUMERS. FTC REMEDIES IN CONSUMER PROTECTION LITIGATION HAVE INCLUDED THE TRADITIONAL CEASE-AND-DESIST ORDER; AFFIRMATIVE DISCLOSURE, CORRECTIVE ADVERTISING, AND RESTITUTION ORDERS; AND, MOST RECENTLY, COMPULSORY ARBITRATION. WHEN FTC ACTIONS RESULT IN THE RETURN OF MONEY TO INJURED PARTIES AND THE ESTABLISHMENT OF BUILT-IN ARBITRATION MECHANISMS, THE AGENCY HAS COME AS CLOSE AS IT CAN, WITHIN THE CONSTRAINTS OF ITS GENERAL PUBLIC INTEREST MISSION AND ITS BUDGET, TO SERVING AS A CONSUMER GRIEVANCE RESOLUTION SYSTEM. THE NEED FOR COMPLAINT-HANDLING MECHANISMS TO BE IMPROVED IS CLEAR, AND THERE ARE HOPEFUL SIGNS IN BOTH THE BUSINESS COMMUNITY AND THE PUBLIC SECTOR POINTING IN THE DIRECTION OF NEEDED REFORM. UNDER ITS EXISTING MANDATE, THE FTC CAN DO A GREAT DEAL MORE TO HELP STATE AND LOCAL AUTHORITIES SOLVE CONSUMER REDRESS PROBLEMS. PLANNING STEPS HAVE BEEN INITIATED WITHIN THE COMMISSION TO ENHANCE STATE-FEDERAL COOPERATION IN REDUCING THE NUMBER OF UNRESOLVED CONSUMER GRIEVANCES.