FTC Announces Changes to Civil Investigative Demands that Benefit Marketers

On July 17, 2017, Federal Trade Commission Acting Chairman Maureen K. Ohlhausen announced several internal process reforms in the Commission’s Bureau of Consumer Protection that are intended to streamline information requests and improve transparency in FTC investigations.

“It is our duty to carry out our vital mission in the most effective and efficient way possible,” said Acting Chairman Ohlhausen. “The changes announced today will reduce unnecessary and undue burdens of FTC investigations without compromising our ability to protect American consumers.”

This past April, Ohlhausen directed the Bureau of Consumer Protection to identify best practices to streamline information requests and improve transparency in investigations. The process reforms recently announced address Civil Investigative Demands in consumer protection cases, and include:

  • Providing plain language descriptions of the CID process and developing business education materials to help small businesses understand how to comply;
  • Adding more detailed descriptions of the scope and purpose of investigations to give companies a better understanding of the information the agency seeks;
  • Where appropriate, limiting the relevant time periods to minimize undue burden on companies;
  • Where appropriate, significantly reducing the length and complexity of CID instructions for providing electronically stored data; and
  • Where appropriate, increasing response times for CIDs (e.g., often 21 days to 30 days for targets, and 14 days to 21 days for third parties) to improve the quality and timeliness of compliance by recipients.

According to the Commission, in order to ensure companies are aware of the status of investigations, the Bureau will adhere to its current practice of communicating with targets concerning the status of investigations at least every six months after they comply with the CID.

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ADVERTISING MATERIAL. These materials are provided for informational purposes only and are not to be considered legal advice, nor do they create a lawyer-client relationship. No person should act or rely on any information in this article without seeking the advice of an attorney. Information on previous case results does not guarantee a similar future result. Hinch Newman LLP | 40 Wall St., 35th Floor, New York, NY 10005 | (212) 756-8777.

 

 

 

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