The FTC was established in 1993 to administer the Fair Competition Act (FCA),which was enacted in March 1993. The FCA provides for the maintenance and encouragement of competition in the conduct of trade, business and in the supply of services in Jamaica. Competition lies at the heart of any successful market economy and is crucial to the protection of consumers' interests and the efficient allocation of resources.

It is a process whereby firms constantly try to gain an advantage over their rivals and win more business by offering more attractive terms to customers or by developing better products or more effective ways of meeting their requirements. Competition has several dimensions such as the quality of product, price, branding and marketing. Price is only one factor, albeit in many markets the most important. Fair and widespread competition encourages the development of new or improved products or processes and, in the long run, enhances economic growth and living standards.