Criminal Defense Lawyers

FTC Target Letter

Dealing With an FTC Target Letter

Getting a target letter from the Federal Trade Commission is no fun. It means they think you did something wrong. Like maybe you had misleading ads or mishandled people’s data. But try not to freak out. With the right game plan, you can handle this in a way that protects you. In this article, I’ll walk through some big things to think about when you get the bad news in the mail.

What’s a Target Letter Anyway?

A target letter is how the FTC says “Hey, we think you broke a law we enforce.” Stuff like the FTC Act on competition and consumer protection.They send letters because investigations take time. The letter will spell out exactly what laws they think you violated. And it’ll show the evidence they have on you so far.It will also ask you to hand over documents, data, or sit for interviews. This helps them decide if they should sue you.

Take a Close Look at What They’re Saying You Did

The very first thing to do is read that target letter carefully. Make sure you totally understand what they’re accusing you of doing wrong. If it’s not crystal clear, ask them to explain more. You need to know their full case before deciding how to respond.If their allegations seem way off, you may not need to cooperate too much. But if they have solid evidence you broke laws, you’ll probably need to negotiate. So analyze their claims, support, and document requests to gauge how big a threat this really is.

Get an Experienced Lawyer to Help You

The FTC has huge resources and tons of experience with these cases. So make sure you have an experienced lawyer on your team to respond strategically. Don’t go it alone here. Find someone who really knows FTC investigations and lawsuits inside and out. This is crucial to protecting yourself.Your lawyer can review the FTC’s claims, write responses, and negotiate if needed. Don’t enter this fight without a pro by your side.

Carefully Comply with the FTC’s Requests

The FTC doesn’t make document and interview requests lightly in a target letter. If you ignore them or don’t really comply, it looks like you’re hiding something. And that can lead to them suing you.But you also shouldn’t just hand over everything without thinking it through. Work closely with your lawyer to decide what you are required to share and how to share it responsibly.For example, if they want data, only give what’s truly relevant. And if they request interviews, prep carefully with your lawyer first. The goal is to avoid handing over evidence that could support claims you can actually disprove.

Consider Trying to Negotiate

In some cases, it may make sense to try negotiating with the FTC before they decide whether to sue. This means going back and forth to address their concerns without admitting you broke laws.For instance, you could agree to change some business practices without saying you’re guilty of anything. But you need an experienced lawyer’s advice before trying this. Done wrong, it could create bigger issues.

Don’t Wait Too Long to Respond

While you want to be smart, don’t delay your response. FTC lawyers may see silence or delays as you being unwilling to cooperate. And that could make them skip negotiations and just file a lawsuit.So talk to your lawyer and start crafting your response soon after getting the letter. Deadlines to reply are usually tight. But showing you’re on top of this may earn some goodwill and time to try negotiating.

Be Thoughtful About Public Statements

Your first reaction may be to publicly tell your side when accused of wrongdoing. But think twice before doing this. FTC investigations are usually confidential until they sue. So speaking out could upset them and trigger legal action.Instead, work with your lawyer to decide if and when public comment makes strategic sense. Don’t say anything that could weaken your position.

It Ain’t Over ‘Til It’s Over

Even if the initial allegations seem off-base, don’t assume you’re off the hook. The FTC may find more evidence as they investigate further. So you need to stay engaged with your lawyer throughout the process to protect yourself.And if the FTC does eventually sue, know that there are still chances to resolve the case through settlements or voluntary fixes. Don’t give up hope.Getting an FTC target letter is scary. But taking a thoughtful approach can help you get the best outcome. Focus on responding carefully and avoiding common mistakes. And partner with an experienced attorney to protect your interests. With the right plan, even serious allegations may be resolved without a lawsuit.