A technology company has not violated any specific privacy statute, yet the Federal Trade Commission opens an enforcement action alleging the company misrepresented its data-sharing practices to consumers. On what legal source does the FTC most directly rely to bring this action?
- AThe common law tort of intrusion upon seclusion, which the FTC enforces on behalf of consumers in federal court.
- BIts statutory authority under Section 5 of the FTC Act to challenge unfair or deceptive acts or practices. Correct
- CA constitutional right to fair dealing implied by the Due Process Clause of the Fourteenth Amendment.
- DA self-regulatory code of conduct that the company adopted and the FTC enforces as binding federal regulation.
Why A is wrong: Tempting because intrusion is a privacy wrong, but it is a private tort claim brought by individuals, not a statutory power the FTC invokes for enforcement.
Why B is correct: Correct: Section 5 of the FTC Act prohibits unfair or deceptive acts or practices, letting the FTC act on a misrepresentation even where no specific privacy statute applies.
Why C is wrong: Tempting because due process sounds protective, but it limits government conduct toward individuals and is not the source of FTC authority over deceptive business practices.
Why D is wrong: Tempting because broken promises in a code can support a case, but the code is not itself the legal source, and the FTC's authority flows from the FTC Act.