Final answer:
Internet market exchanges bring buyers and sellers together and are an integral part of the commerce platform in industries like cell phones and health insurance. While they do not eliminate the necessity for credit and background checks, they are not directly approved by the FTC, which along with the FCC, ensures fair practices and competition.
Step-by-step explanation:
Internet market exchanges primarily function to bring together buyers and sellers in the same industry, facilitating transactions and providing a platform for commerce. They do not inherently restrict participation, as they often aim to attract a wide range of participants to create a dynamic market. However, they do not necessarily eliminate the need for credit and background checks; these are precautionary measures that may still be required to establish trust between parties in a transaction.
Contrary to some beliefs, Internet market exchanges are not directly approved by the Federal Trade Commission (FTC); rather, the FTC, as well as the Federal Communications Commission (FCC), work to oversee regulations and protect American citizens against deceptive trade practices and internet scams within such exchanges.
When it comes to market exchanges like those in the cell phone industry or health insurance exchanges, the involvement of governing bodies is more about ensuring fair competition, protecting consumer rights, and overseeing voluntary exchanges, especially when they have an impact on third parties. Agencies ensure that participants such as buyers and sellers are well-informed and can enter or leave the market freely, sustaining an environment where competition can thrive, which is a key aspect of the economic way of thinking.