Federal Trade Commission Act Section 5: Unfair or Deceptive Acts or Practices Background Section 5(a) of the Federal Trade Commission Act (FTC Act) (15 USC Â§45) prohibits âunfair or deceptive acts or practices in or affecting commerce.â This prohibition applies to all persons engaged in commerce, including banks. The Board has affirmed its authority under section 8 of the Federal Deposit Insurance Act to take appropriate action when unfair or deceptive acts or practices (UDAP) are discovered. On March 11, 2004, the Board and the Federal Deposit Insurance Corporation (FDIC) issued a joint statement (Joint Statement) regarding the agenciesâ responsibilities to enforce the prohibi-