Banks Warned not to Engage in Unfair, Deceptive Practices
June 10, 2002
Federal and state-chartered banks are not exempt from the Federal Trade Commission Act’s prohibition against unfair or deceptive practices, according to two federal regulatory agencies. Clarifying the scope of the FTC Act, the Federal Reserve Board and the Federal Deposit Insurance Corp. said that the statute’s UDAP provision does not exclude banks even though they are not regulated by the Federal Trade Commission, the statute’s chief enforcer.