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When is a business practice unfair under FTC Act Section 5?

A practice is unfair when it causes or is likely to cause substantial consumer injury, consumers cannot reasonably avoid the injury, and countervailing benefits to consumers or competition do not outweigh it. Public policy may inform the analysis but cannot serve as the primary basis by itself.

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Source

Source
15 U.S.C. § 45(a)(1) and (n)
Source
United States Code
Area
FTC Act consumer protection
Source type
statute
Status
In force
Authority
Federal Trade Commission
Checked
2026-09-22

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