What major reformative act monitored business practices and established guidelines for truthful advertising in the early 1900s?

The Federal Trade Commission Act of 1914 plays a critical role in the history of business regulation in the United States. This landmark legislation established the Federal Trade Commission (FTC), which was empowered to prevent unfair business practices and deceptive advertising. The act aimed to protect consumers by ensuring that businesses operated transparently and honestly, setting guidelines that companies had to follow regarding truthful advertising and fair competition.

One of the primary functions of the FTC is to enforce laws against deceptive advertising and unfair competition, which significantly shaped the regulatory landscape of American commerce. This act emerged during a period known as the Progressive Era when there was a strong push for reforms in various sectors, including business, to combat corruption and protect consumers.

The other options represent important legislative measures but do not specifically focus on monitoring business practices and advertising in the way the Federal Trade Commission Act does. For instance, the Securities Act of 1933 addresses securities trading and financial disclosures rather than advertising practices, while the Clayton Antitrust Act deals primarily with antitrust laws and competition rather than advertising integrity. The Consumer Product Safety Act, enacted later, is focused on product safety rather than business practices or advertising.