Question

Why are they excluded from the FTC's jurisdiction?

1) Because they are not a part of the FTC's mandate
2) Because they are regulated by a different agency
3) Because they are not subject to any regulations
4) Because they are exempt from FTC oversight

Answer 1

Entities might be excluded from the FTC's jurisdiction if they are regulated by different federal agencies, such as the SEC or FCC, or if they are government corporations, which operate under different rules.

Step-by-step explanation:

Entities may be excluded from the Federal Trade Commission (FTC)'s jurisdiction for various reasons. One common reason is because they are regulated by a different agency, which is better equipped to oversee the specific intricacies of their operations. The FTC primarily focuses on consumer protection and competition in broad sectors of the economy. Other entities are overseen by different federal regulatory agencies such as the Securities and Exchange Commission (SEC), which regulates financial markets, or the Federal Communications Commission (FCC), which regulates communications.

For example, government corporations are also exempt from FTC oversight because they participate in market activities while fulfilling a government interest, and their profits are not distributed as dividends but are reinvested back into the enterprise. These corporations are established by the federal government and are distinct from private corporations in their structure and purpose.