Wiley Attorneys Give Rundown on Responding to FTC Inquiries
Data privacy attorneys from Wiley on Monday offered a rundown on the process for responding to an FTC inquiry.
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In a blog post Monday, the law firm noted that FTC investigations are often prompted by consumer complaints or media reports about privacy, consumer protection or advertising issues. Staff will sometimes ask companies to voluntarily share information; other times, staff issue a formal civil investigative demand, it said. Sometimes, the agency will contact third parties like advertising partners and data providers before reaching out to the target of the potential investigation.
There are “no specific limits on the number of interrogatories,” the firm said. “And once a company has finished responding, FTC staff sometimes issue a second CID.”
If the agency moves ahead with enforcement action, staff often send a draft complaint or proposed settlement, the firm said. If there’s no settlement, staff will usually call for a commission vote on enforcement. Companies often have the opportunity to meet with the Consumer Protection Bureau and commissioners during the consent negotiation process.
“Understanding the potential process and resource burdens from the outset is critical to being able to plan for and best respond to any FTC inquiry,” the firm said.