What law prevents large companies from engaging in unfair trade practices to drive out competition?

The law that prevents large companies from engaging in unfair trade practices to drive out competition is the Federal Trade Commission Act. This legislation was passed in 1914 to establish the Federal Trade Commission (FTC), which is responsible for enforcing antitrust laws and promoting fair competition. The Act prohibits unfair methods of competition and deceptive acts or practices in commerce, ensuring that businesses engage in fair competition and do not engage in tactics that harm competitors or consumers.

The other choices address different aspects of consumer protection or financial regulation. The Consumer Protection Act is focused on safeguarding consumers from harmful practices in businesses. The Truth in Lending Act pertains specifically to the disclosure of credit terms and protecting borrowers in financial transactions. The Unfair Trade Practices Law, while it sounds relevant, is not a federal law and may vary by state, lacking the broad enforcement power of the FTC.

Therefore, the Federal Trade Commission Act is the correct choice, as it directly targets unfair trade practices by larger companies in the marketplace.