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During the late 1970s, the Federal Trade Commission (FTC) developed a reputation as a corporation-eating jungle cat, often more interested in creating new policies and laws--not to mention headlines--than enforcing rules already on the books. This changed abruptly when Ronald Reagan became Washington's ring master. According to many consumer advocates, the FTC was turned into a toothless house cat that would rather let the free market sort itself out--and let the bad guys get away unscathed--than take companies to court.
Today, Washington antitrust lawyers and policy watchers are saying the old FTC lion is starting to rouse again--and roar. In fact, according to a study done by Georgetown Law School, the FTC conducted three times as many investigations and brought twice the number of cases to court last year than it typically did annually during the Reagan White House years.
In recent months, the agency has stepped-up its price-fixing enforcement, taken aim at "900" telephone numbers directed at children, and accused television networks and the College Football Association of conspiring to limit the market for televised college football games.
Looking to expand its reach and put more emphasis on pro-consumer cases, the FTC has also created a special unit to study new areas that may be ripe for antitrust action. Already the FTC has let it be known it plans to investigate advertisers who claim that their products benefit the environment. It's also taking a closer look at curbing cigarette and liquor ads aimed at younger adults. Additionally, agency lawyers are examining a new policy of making companies give up any money they may have made from an illegal merger.
"The FTC certainly has renewed interest in areas of antitrust law that languished during the Reagan era," notes James Sneed, a lawyer with the firm of McDermott, Will & Emery....