What Counts as Unfair?

15 US Code Section 45(n): The FTC has “no authority . . . to declare . . . an act or practice . . . unfair unless the act or practice

[1] causes or is likely to cause substantial injury to consumers

[2] which is not reasonably avoidable by consumers themselves and

[3] not outweighed by countervailing benefits to consumers or to competition.”

When a business activity causes harm to consumers, requirement (3) means the FTC must weigh that harm against any benefits to competition from the activity.

Yes

No