Adam Smith warned us of what happens when business gets too cozy with government. We see this with Drug Companies, Healthcare, Tele-communications, Defense Contractors and so many industries. Of course, we also know that our government needs to work with our corporations to allow the free-market to work. But that does not mean the government regulators should work for the corporations or lobbyists.
In studying the FTC over the years, I have seen some incredible attacks on American Companies. For instance; “Hooked on Phonics” due to California Teachers Lobby. The list of their attacks on American Businesses is pathetic, still I do understand why they exist, for instance; lead based paint on toys, poison toothpaste, etc.
The reality is that the FTC can easily send a letter to a business rather than filing in Federal District Court to attack them. Also they could concentrate on real issues like the poison toothpaste. When government regulatory bodies like the FTC attack small companies on the request of their competitors, the small company to defend such a suit would pay a minimum of $250,000 and the government has unlimited money to fight them, regardless if the case is reality based.
We can also see the anti-trust division of the FTC going overboard as if it is a religion, and they trample the rights of corporations, for instance I see Boeing has issues with the FTC attacking them, denying mergers and this ends up costing hundreds of millions of dollars and loss of brand name reputation. At minimum it is problematic. In case you are interested in the FTC’s outrageous attacks: