Deceptive trade practices, or DTPs, are illegal business practices that violate the law and harm consumers. They include false advertising, bait-and-switch schemes, and other forms of fraud.
In the United States, deceptive trade practices are governed by the Federal Trade Commission (FTC). The FTC defines deceptive trade practices as any “unfair or deceptive acts or practices in or affecting commerce.” This includes both truthful and misleading advertising claims.
The FTC has authority to sue companies that engage in deceptive trade practices. In addition to civil penalties, these companies may be ordered to pay restitution to consumers who have been harmed by their actions.