The Art of Responding to a Federal Trade Commission Civil Investigative Demand

Federal Trade Commission Civil Investigative Demands (CIDs) are compulsory administrative subpoenas utilized by the Federal Trade Commission to obtain materials and information about an investigation into a recipient’s (and/or another party’s) business practices.

The initial response is critically important.

Below are some tactics designed to thoroughly consider defense strategies aimed at achieving an optimal resolution.

The FTC has broad powers to investigate unfair and deceptive acts and practices.  The FTC Rules of Practice are published in the Code of Federal Regulations and set forth procedures governing inquiries, investigations and compulsory processes.

While FTC CIDs should be taken seriously because they are compulsory in nature, recipients must comprehend how the FTC operates, the agency’s policies and how to avoid the initiation of an FTC enforcement lawsuit.

It is generally a good idea for CID recipeints not to attempt to discuss the investigation with FTC staff themselves.

Importantly, receiving a CID does not necessarily mean that the recipietn is a “target.”

Read more, here.

Richard B. Newman is an FTC compliance and defense attorney at Hinch Newman LLP.

Informational purposes only. Not legal advice. May be considered attorney advertising.