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Challenging Questionable FTC Investigation Tactics
|Last Updated on: 2nd October 2023, 05:35 pm
Challenging Questionable FTC Investigation Tactics
Dealing with an FTC investigation can be really stressful and intimidating. The FTC has a lot of power to dig into your business practices and finances, which can feel super invasive. And if they decide you’ve broken the law, the penalties can be huge – we’re talking millions of dollars in fines or even jail time.
But that doesn’t mean you have to just sit back and let them steamroll you. There are ways to challenge some of the FTC’s more questionable tactics during an investigation. Here are some strategies that could help even the playing field a bit:
Question Broad or Vague Demands
The FTC has the right to request information and documents related to your business practices as part of an investigation. But sometimes their demands can be crazy broad – like asking for “any and all documents related to your company’s advertising for the past 10 years.” That’s thousands of documents!
You can question the scope of these requests and try to narrow them down to something more reasonable. Be prepared to explain how complying would be unreasonably burdensome or expensive. Offer to provide a smaller sample of documents first so they can see if it’s really relevant.
Challenge Legal Basis for Certain Requests
The FTC can only legally request info that’s reasonably related to their investigation. So if they start asking for things that seem totally irrelevant, you can challenge whether they have a legal basis for that demand.
For example, if they’re investigating your ad claims but then ask for all your employee HR records, you could argue that goes beyond their scope. Be ready to explain why you think the request exceeds their authority.
Get Help From Legal Counsel
Trying to stand up to the FTC alone can be really intimidating. Consider getting help from an experienced attorney who regularly deals with FTC investigations. They’ll know all the rules and procedures and can advise you on the best ways to respond.
Having a legal pro in your corner will make the process less scary. And they can negotiate with the FTC on your behalf to resolve issues or even get the case dismissed if there’s no real basis for it.
Correct Any Misinformation
Sometimes FTC investigators make incorrect assumptions or have bad intel about your business. This can lead them down the wrong path in understanding your practices.
Don’t let inaccurate information go unchallenged – correct the record! Respond to any mistaken assertions in writing and back it up with evidence like financial records, internal documents, sworn statements from employees, etc.
Argue the Case Publicly
The FTC relies a lot on public perception. One way to put pressure on them is to make your case publicly if you feel the investigation is unfair.
You can issue press releases, do media interviews, publish op-eds, or post on social media explaining your side of the story. Shining a spotlight on questionable FTC tactics can make them think twice about continuing to pursue a weak case.
File an Official Complaint
If FTC attorneys or investigators are clearly overstepping their bounds, you can file an official complaint. This puts them on notice that you won’t tolerate misconduct.
Examples could include obviously biased treatment, personal attacks or threats, improper sharing of confidential information, etc. Your complaint goes to the FTC’s Office of Inspector General, which oversees investigations.
Sue for Violating Your Rights
In extreme cases, you may be able to sue the FTC for trampling on your legal rights. For example, if they shared sensitive information that tanked your stock price, or their demands put you out of business.
You’d have to prove they directly caused you harm and exceeded their authority. But the threat of a lawsuit can put pressure on them to wrap up or settle a questionable case.
Standing up to the FTC is scary, for sure. But it’s not impossible, as long as you know your rights and get good legal advice. With the right strategy, you may be able to get an overzealous investigation off track or even stopped altogether.
References
Here are some references cited in this article:
- How to Challenge Questionable FTC Investigation Tactics
- FTC Takes Action Against Amazon for Enrolling Consumers in Amazon Prime Without Consent and Sabotaging Their Attempts to Cancel
- Deal or no deal? FTC challenges yo-yo financing tactics
- FTC Sues Amazon for Deceptive Tactics
- FTC Sues Large Private-Equity-Backed Anesthesia Provider
- Private equity’s favorite way to make acquisitions may be illegal, FTC chair Lina Khan says