How to Challenge an FTC Subpoena or CID

How to Challenge an FTC Subpoena or CID

So you got a subpoena or Civil Investigative Demand (CID) from the Federal Trade Commission (FTC). Don’t panic! This article will walk you through what to do step-by-step in plain English.

What is a subpoena or CID?

A subpoena or CID is a legal request for information from the FTC. It means the FTC is investigating something and wants info from you related to the investigation.

There are two main types:

• Subpoena – asks for documents or testimony
• CID – asks for documents, written reports, or answers to questions

If you don’t respond, the FTC can go to court to force you to comply. But let’s try to avoid that if we can!

Should I challenge it?

Just because you got a subpoena or CID doesn’t mean you did anything wrong! The FTC sends these to both targets of investigations AND third parties who might have helpful info.

You don’t have to comply if the requests are unreasonable or irrelevant. But think twice before challenging – it may be less hassle just to provide the info.

Here are common reasons people challenge:

• The requests are overbroad and seek too much irrelevant info
• Complying would be unreasonably burdensome/expensive
• The requests infringe on confidentiality or trade secrets
• You think the investigation exceeds the FTC’s authority

If any of those fit your situation, you may want to challenge or modify the subpoena/CID.

What are my options?

You have 3 main options if you get an FTC subpoena/CID:

1. Comply – Just provide the requested info. This is the easiest option.
2. Negotiate – Ask the FTC to modify or narrow the requests.
3. Challenge – Formally ask a court to quash (cancel) or limit the subpoena/CID.

Let’s look at how #2 and #3 work.

Negotiate with the FTC

The FTC may be willing to narrow the scope of their requests if you explain your concerns. Here are some tips for negotiation:

• Respond promptly – the sooner the better.
• Request a meeting to discuss your concerns.
• Explain specifically which requests are unreasonable and why.
• Propose ways to modify the requests that work for both sides.
• Offer to produce docs/info you can provide without much burden.
• Stay cooperative – don’t just stonewall or say no.

The FTC is often open to compromise. By negotiating cooperatively, you can likely reach an agreement and avoid court.

File a petition to modify or quash

If talks with the FTC break down, you can challenge the subpoena/CID in court. Here’s how:

1. File a petition within 20 days of being served.
2. Send it to the FTC’s Office of the General Counsel.
3. Explain all legal and factual arguments for your challenge.
4. Ask the court to quash (cancel) or modify the subpoena/CID.
5. The FTC will respond, and the court will decide.

Grounds for challenging include:

• The subpoena/CID exceeds the FTC’s authority
• The requests are irrelevant to the investigation
• Complying would be unduly burdensome
• The requests violate a constitutional or statutory right

Cite specific precedents and legal arguments to support your case. The stronger your arguments, the better chance of success.

What happens if I don’t comply?

If you ignore the subpoena/CID, the FTC can go to court to enforce it. The court can order you to comply and impose sanctions like fines or jail for contempt if you still refuse.

So don’t just ignore it! Respond promptly and thoughtfully. Negotiation or challenging the subpoena/CID is better than doing nothing.

Key takeaways

• Act quickly – respond right away.
• Be cooperative – negotiate reasonably with the FTC.
• Consider carefully before challenging in court.
• Complying may be easier than fighting if the requests are reasonable.
• Ignoring it is the worst approach and may lead to court sanctions.

Dealing with an FTC subpoena or CID can be intimidating, but staying calm and seeking legal help puts you in the best position. With the right strategy, you can likely reach a reasonable outcome and avoid getting into hot water down the road.

Sources

[1] FTC Petitions to Quash

[2] FTC Investigative Authority

[3] Complying with FTC Subpoenas and CIDs

[4] CID FAQs for Small Businesses

[5] Challenging Overly Broad FTC Subpoenas and CIDs

[6] FTC Subpoena Defense Strategies