Covered by NYDaily News. Las Vegas man accused of threatening a prominent attorney and making vile remarks.
Covered by New York Times, and other outlets. Fake heiress accused of conning the city’s wealthy, and has an HBO special being made about her.
Accused of stalking Alec Baldwin. The case garnered nationwide attention, with USAToday, NYPost, and other media outlets following it closely.
Juror who prompted calls for new Ghislaine Maxwell trial turns to lawyer who defended Anna Sorokin.
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Getting a civil investigative demand (CID) from the Federal Trade Commission (FTC) can be intimidating. However, cooperating with the investigation and providing the requested information in a timely and transparent manner can significantly reduce the risk of subsequent litigation. This article provides an overview of FTC investigations, how to respond to a CID, and the benefits of cooperation.
The FTC is empowered to investigate “unfair or deceptive acts or practices” that affect commerce under Section 5 of the FTC Act. Common areas of investigation include false advertising, data security and privacy violations, anticompetitive practices, and violations of consumer protection regulations.Investigations typically start with the FTC issuing a CID to collect information. CIDs are similar to subpoenas and require the recipient to provide documents, written reports, answers to interrogatories, or oral testimony related to the investigation. Once the FTC reviews the information, they determine if further action is warranted.
Receiving a CID can be daunting, but it’s important not to panic. Consulting with legal counsel is highly recommended to understand your obligations and strategy. Key things to know:
Cooperating with an FTC investigation has significant upside, even if violations occurred. It enables the company to shape the narrative, demonstrate responsiveness, and build goodwill with investigators. Potential benefits include:
The FTC remains committed to bringing enforcement actions where warranted. However, companies that respond earnestly to address issues identified in an investigation are likely to fare better than those attempting to obfuscate problems or evade inquiries.While daunting, an FTC investigation also represents an opportunity to strengthen compliance practices moving forward. Consult capable legal counsel to interface with investigators, demonstrate willingness to remedy concerns, and emphasize the steps your company is taking to prevent recurrences. This cooperative posture can pay dividends versus taking an adversarial stance.
Getting hit with a civil investigative demand (CID) from the Federal Trade Commission can be intimidating. But don’t panic – with the right help, you can get through it. This article will walk you through what to expect and how best to respond if your company receives a CID.
A CID is basically a subpoena that the FTC uses to investigate potential violations of laws they enforce, like antitrust regulations or laws against unfair and deceptive practices. It requires you to provide information, documents or testimony related to their investigation.You don’t have to be the target of the investigation to get a CID – even companies with useful information can get dragged in. And while it’s not as severe as a criminal subpoena, it does come with legal penalties if you don’t comply.So yeah, it’s a big deal. But the good news is there are things you can do to manage the process.
Take a breath. I know it’s stressful, but panicking won’t help.Carefully review the CID and try to get a sense of what exactly the FTC is investigating. Look at what information and documents they’re requesting and think about what you have that’s responsive.Notify leadership at your company and start thinking about who needs to be looped in to handle responding. You’ll likely need to get your legal team involved.Do not start destroying documents. I know the temptation is there if you think you have something to hide, but that can cause way more legal issues down the road. Just don’t.Consider reaching out to the FTC to ask for more time if you need it. They may say no, but it never hurts to ask nicely.From there, you‘ll want to bring in professionals to help formulate your response strategy.
Responding to something like a CID takes experience – it’s not something you want to handle completely internally unless you really know what you‘re doing.Here are some ways to get help:
Hire outside legal counsel who has experience specifically with FTC investigations. They’ll know all the rules and regulations to make sure you respond appropriately. Shop around to find someone within your budget.
Consult a law firm that offers CID response services. Some firms have packaged services to help guide companies through the response process. This can be cheaper than hiring a lawyer full time.
Use legal tech tools that help compile and review documents requested by the FTC. This can cut down on lawyer fees for document review. Just make sure to still have a lawyer verify your final production.The right legal help will allow you to respond confidently while protecting your company’s interests.
One important thing your lawyers can help with is trying to narrow the scope of the CID to reduce your burden. This involves negotiating with the FTC.Some strategies include:
While the FTC doesn’t always agree to limit scope, it’s worth asking – the worst they can do is say no. Just be prepared to have backup compromise solutions in your negotiations.
You’ll also want to ensure that your actual document productions and interrogatory responses fully comply with the CID. Having them be as buttoned-up as possible will show the FTC you’re taking it seriously.Your lawyers can make sure all your I’s are dotted and T‘s crossed, but here are some biggies:
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