The Federal Trade Commission was founded as a direct response to the rampant monopolistic practices that characterized the American economy in the late 19th and early 20th centuries. Following the emergence of corporate giants that stifled competition and exploited consumers, the need for a dedicated regulatory body became evident. President Woodrow Wilson advocated for this reform, which culminated in the passage of the Federal Trade Commission Act by Congress. His vision was to create a body that would not only supervise business practices but also actively promote competition and consumer rights.

The FTC officially began operations shortly after its formation, taking on issues related to deceptive advertising, monopolies, and unfair competition tactics. Its jurisdiction extended to all sectors of the economy, making it a powerful tool in maintaining marketplace ethics. The commission's first major case involved the cessation of unfair trade practices by significant corporations. This marked a shift in the way businesses operated, as they were now subject to scrutiny by a government entity, fundamentally changing the nature of American commerce.

From its inception, the FTC played a crucial role in shaping business standards and promoting economic integrity. Over the decades, the commission's powers evolved through various legislative amendments, adapting to shifts in market dynamics and consumer needs. The establishment of the FTC not only indicated a change in governmental approach towards regulatory oversight but also reflected a broader movement towards consumer protection within the evolving American economic landscape. The commission remains a cornerstone of U.S. economic policy today, ensuring that fair practices are upheld in the marketplace.