What is the primary purpose of the Federal Trade Commission (FTC)?

The primary purpose of the Federal Trade Commission (FTC) is to prevent unfair trade practices. This mission encompasses a wide range of activities aimed at protecting consumers and ensuring a competitive marketplace. The FTC works to eliminate deceptive advertising, fraud, and anti-competitive practices that could harm consumers or disadvantage businesses.

By focusing on the prevention of unfair trade practices, the FTC helps maintain transparency in the market, fostering an environment where fair competition can thrive. This not only benefits consumers by ensuring they receive truthful information and fair treatment but also supports ethical business practices within the economy.

The other options represent functions that are managed by different regulatory bodies or agencies. For example, while the FTC does review certain mergers to assess their effect on competition, regulating corporate mergers and acquisitions is not its primary role. The formulation of accounting standards is the responsibility of organizations like the Financial Accounting Standards Board (FASB), and enforcing intellectual property laws typically falls under the jurisdiction of the United States Patent and Trademark Office (USPTO) and other related entities. Thus, the focus of the FTC remains firmly on preventing unfair trade practices.