Final answer:
The Federal Trade Commission combats unfair and deceptive advertising by issuing counteradvertising orders and imposing fines and penalties, but it does not provide tax incentives or subsidies as part of its enforcement activities.
Step-by-step explanation:
The Federal Trade Commission (FTC) is equipped with various tools and actions to combat and prevent unfair and deceptive advertising. When it comes to addressing these misleading practices, the FTC can:
- Issue counteradvertising orders to correct the misleading information.
- Impose fines and penalties on companies that have violated FTC regulations.
However, the FTC does not typically provide tax incentives or subsidies as a means of combating unfair advertising; these actions are generally outside the scope of the FTC's enforcement authority. Tax incentives and subsidies are more likely to be utilized by the government for stimulating economic growth or promoting certain activities or sectors, rather than as tools for enforcement. In order to protect consumers, the FTC focuses on stopping practices that could mislead them, enforcing truthful advertising, and ensuring a fair marketplace.