Fundamentals of Business Intelligence (FBI) Practice Exam

Which regulatory body is responsible for overseeing advertising and pricing practices to ensure consumer protection?

1. Generally Accepted Accounting Principles

2. North American Free Trade Agreement

3. Food and Drug Administration

4. Federal Trade Commission

The correct answer is: Federal Trade Commission

The Federal Trade Commission (FTC) is the regulatory body charged with overseeing advertising and pricing practices to ensure consumer protection. The FTC's mission includes preventing unfair or deceptive business practices, which encompasses misleading advertisements, fraudulent pricing strategies, and other practices that might harm consumers. By monitoring and enforcing laws related to advertising, the FTC plays a crucial role in maintaining fair competition and fostering an informed consumer base. The other options listed do not focus on advertising and pricing practices in the same way. Generally Accepted Accounting Principles (GAAP) pertain to financial accounting standards, ensuring consistency and transparency in financial reporting. The North American Free Trade Agreement (NAFTA) is an agreement that facilitated trade between Canada, Mexico, and the United States, but it does not directly address advertising or consumer protection. The Food and Drug Administration (FDA) primarily oversees the safety and efficacy of food and drug products, rather than general advertising practices outside of its specific domain. Thus, the FTC is the appropriate regulatory body in this context.