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Key Differences in Responding to FTC vs. FDA or SEC Civil Investigative Demands
Key Differences in Responding to FTC vs. FDA or SEC Civil Investigative Demands
Based on the search results, here are some key differences in responding to Federal Trade Commission (FTC) vs. Food and Drug Administration (FDA) or Securities and Exchange Commission (SEC) civil investigative demands:FTC Civil Investigative Demands (CIDs)
Issued under FTC Act authority to investigate possible violations of laws the FTC enforces, like consumer protection or antitrust laws.
- Seek documents, tangible things, or testimony related to an FTC investigation
- Enforceable in federal court if recipient fails to comply
- FTC typically tries to compel compliance only after attempts to negotiate scope and compliance timing
FDA Civil Investigative Demands
- Used to investigate issues like adulterated foods/drugs, misbranded medical devices, or violations of post-market surveillance rules
- Can lead to criminal prosecution by FDA’s Office of Criminal Investigations or civil/criminal court enforcement actions
- Have strict deadlines for compliance detailed in the demand
SEC Subpoenas
- Issued to investigate potential violations of securities laws, like fraud or reporting violations
- SEC focuses on civil enforcement and administrative actions; criminal prosecution done by Department of Justice
- Can lead to SEC civil injunction or enforcement action if party fails to comply
Some key tips when responding:
- FTC rules require “meet and confer” to discuss scope and burden
- Seek to modify overbroad demands; courts tend to favor agencies’ investigative authority
- Stay compliant; noncompliance can lead to contempt orders or charges
- Get organized immediately with response team
- Consider seeking legal counsel, especially for oral testimony
The FTC and FDA also issue joint warning letters related to products like e-cigarettes marketed in ways that appeal inappropriately to youth. The FTC and SEC have recently focused joint efforts on issues like cryptocurrency fraud