Unfair, Deceptive or Abusive Acts and Practices

Section 5 of the Federal Trade Commission Act (FTC Act), 15 USC 45(a)(1) (UDAP), prohibits "unfair or deceptive acts or practices in or affecting commerce." The Dodd-Frank Act makes it unlawful to engage in any unfair, deceptive or abusive act or practice (UDAAP with two As). The responsibility for enforcing the prohibition against "abusive" acts or practices was given to the Consumer Financial Protection Bureau (CFPB) under Dodd-Frank, but the prudential regulators retain their authority to enforce UDAP under Section 5 of the FTC Act. To date, the CFPB has not issued any rules under its UDAAP authority.

Learn more about our position by reading our policy overview.

 

 Recent Developments

 
  • There have been no recent developments related to UDAAP within the last six-months.
 

 The Basics

 

Statutes

Note: The Federal Trade Commission exercises UDAP authority against persons, partnerships, or corporations. The prudential regulators enforce UDAP against banks, savings and loan institutions or Federal credit unions.

Regulations

Guidance/FAQs

Exam Procedures

 

 Resources

 
 

 Advocacy

 
 

 Articles/Speeches

 


Questions? For more information, contact Rick Freer.