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Plotting a Long-Term Company Strategy Around an FTC Civil Investigative Demand
March 21, 2024
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Understanding the CID
- A CID is like an administrative subpoena that compels a company to provide information, documents, testimony, etc. related to an FTC investigation. It is enforceable in court.
- Read through the CID carefully to understand the scope and nature of the FTC’s inquiry. This can help tailor the response strategy.
- Hire an experienced attorney to help interpret the demand and guide the response process.
Responding Thoughtfully
- Respond completely and strategically. The initial response is critical for positioning the company favorably.
- Educate the FTC about the company’s business, industry, and relevant facts to provide context. Persuade them to narrow the scope if appropriate.
- Preserve objections and privileges where applicable while assessing if any requests are unreasonable.
- Be cooperative but stand firm on objections if necessary. Seek to avoid contempt charges.
Developing the Long-Term Strategy
- Impose a legal hold to avoid destruction of relevant documents and information.
- Assess the company’s actual liability and exposure based on the facts.
- Outline strategies aligned with the company’s long-term vision and goals. Consider settlements if violations occurred.
- Implement preventative compliance measures going forward and communicate those to the FTC.