Civil Investigative Demands: What You Need to Know

Civil Investigative Demands (CIDs) are powerful tools used by government agencies to gather information during investigations into potential violations of law, especially in areas like antitrust, consumer protection, and false claims. Understanding what a CID is and how to respond is crucial for individuals and businesses that receive one.

What is a Civil Investigative Demand?

A Civil Investigative Demand is a formal request for documents, written answers, or testimony, issued by a government agency as part of a civil investigation. Unlike a subpoena, a CID can be issued before a formal lawsuit is filed, allowing agencies to collect evidence during the investigative stage.

What is the difference between a subpoena and a civil investigative demand?

Unlike a subpoena, a CID can be issued before a formal lawsuit is filed, allowing agencies to collect evidence during the investigative stage. Subpoenas are typically issued in connection with ongoing litigation, while CIDs are investigative tools used prior to litigation.

Who Uses Civil Investigative Demands?

Federal agencies such as the Department of Justice (DOJ), the Federal Trade Commission (FTC), and state attorneys general frequently use CIDs in their investigations. These demands are often used in cases involving suspected fraud, antitrust violations, or deceptive practices.

Who can issue a civil investigative demand?

Federal agencies such as the Department of Justice (DOJ), the Federal Trade Commission (FTC), and state attorneys general frequently use CIDs in their investigations.

What to Do If You Receive a CID

Receiving a CID can be intimidating. The demand will specify what information is being requested and the deadline for compliance. It is important to take the request seriously and respond appropriately to avoid potential legal consequences.

Is a civil investigative demand serious?

How to Respond to a CID

If you receive a CID, you should consult with legal counsel experienced in government investigations. Your attorney can help you understand the scope of the demand, negotiate deadlines or the scope of requested materials, and ensure that your response is timely and complete. Failing to respond or providing incomplete information can result in legal penalties.

How to respond to a civil investigative demand?

Conclusion

Civil Investigative Demands are significant legal tools that require prompt and careful attention. If you receive a CID, seeking legal advice is the best way to protect your interests and ensure compliance with the law.