EnforcementThe federal trade commission act introduces our next topic: the methods by which the antitrust laws are enforced.

The department of justice is charged with the enforcement of the Sherman act and the Clayton act. Fines of up to $ 100,000 and jail terms of up to 3 years are allowed for individuals who violate the Sherman act. Event more important, the department of justice may ask federal courts to issue injunctions to constrain business behavior that violates either of these acts.

Section 5 of the FTC act gives the federal trade commission the authority to control “unfair methods of competition.” In a landmark antitrust case, the Supreme Court held that violations of the Sherman act are unfair methods of competition within the meaning of section 5 of the FTC act. Anything that violates the Sherman act also violates section 5 of the FTC act.

At the same time, the FTC act and the Clayton act are companion pieces of legislation. Section 11 of the Clayton act gives the FTC authority to enforce the Clayton act.

This arrangement effectively establishes a two – track system for public enforcement of the justice department enforces the antitrust laws has varied with the political philosophy of the administration occupying the white house. The federal trade commission is less susceptible to such changes of regime, because federal trade commissioners are appointed for staggered 7 year terms.

Congress has provided still another avenue for enforcement of the antitrust laws.