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When Can You Expect Follow-Up Civil Investigative Demands From the FTC?
The FTC can issue follow-up CIDs at any point during an investigation if they have additional questions or need more information. According to the FTC’s guidance for small businesses 1, if your responses to the initial CID raise additional questions, expect follow-up demands for more information.The FTC may also approach a company about negotiating a possible legal settlement after reviewing the documents provided in response to a CID 1.
If a settlement is not reached, the FTC can file a lawsuit.So while there is no set timeframe, a company can expect to receive additional CIDs if the FTC’s investigation is still open and they have outstanding questions or need clarification. The FTC advises staying in contact with the investigating attorney to discuss what information they are looking for 1.
Some key strategies when responding to an FTC CID include:
- Begin preparing your response immediately upon receipt as there are strict deadlines 9 24.
- Consider filing a petition to limit or quash any unreasonable or unduly burdensome aspects, but expect to have to comply with some version of the demand 9 24.
- Meet and confer with the FTC to clarify what they are looking for and discuss any challenges with compliance
18 24.
- Provide complete and accurate responses to avoid court-ordered enforcement actions for non-compliance, which could lead to contempt proceedings 9 12.
- Stay in close communication with the investigating attorney throughout the process 1 9.