The Federal Trade Commission (FTC) has regulated competitive business activities since its inception in 1915. Section 5 of the Federal Trade Commission Act (FTCA) empowers the Commission to enjoin certain unfair -and deceptive business practices. As is the case with other regulatory statutes, Congress chose not to define certain terms in the FTCA, such as "deceptive," leaving this task to the FTC and the federal courts. The result has been a steady flow of federal case law clarifying the definition of a deceptive business act or practice.
Jack E. Karns,
The Federal Trade Commission's Evolving Deception Policy,
U. Rich. L. Rev.
Available at: http://scholarship.richmond.edu/lawreview/vol22/iss3/5