The FTC (Federal Trade Commission) is, as the name suggests, a federal level agency that works to enforce competition regulations and consumer protection law within the United States of America (USA) so that markets remain competitive at all times and that customers are fully protected. It does this by stopping businesses from fraudulently, deceptively, and / or unfairly harming customers through unlawful practices by conducting investigations and consequently suing where laws have been violated. Because it promotes healthy competition between businesses within a market, it ensures that prices are kept down whilst consumer choice and quality of products / services are kept high. This is also helped by the fact that the FTC has the power to stop mergers that are anti competitive or certain business practices that could harm consumers. The agency has the authority to make rules, enforce these rules, and investigate businesses as it sees fit.
Within the United States of America the federal trade laws that are controlled and enforced by the FTC are in place to prevent not only fraud but also deceptive and unfair business practices, whilst at the same time promoting healthy competition. The Federal Trade Commission Act is the key statute that protects consumers and is fully enforced by the FTC in order to stop impediment to competition and injury to consumers.
FTC Investigative Scope
As part of the Federal Trade Commission Act, it is within the authority of the FTC to conduct any inquiry that is necessary for it to gather data and information; its duties; and for it to conduct investigations into business practices and conduct where they impact on commerce. The Federal Trade Commission Act also allows the agency to give out FTC subpoenas to those necessary parties and force them to produce specific documentation / electronic information in addition to providing a testimony of any individuals who have been named. With its powers, the FTC is able to go after monetary redress, prescribe certain rules that work to prevent deceptive and / or unfair practices, and make recommendations to Congress.
Ahead of any initial complaint coming through, the investigations carried out by the FTC are not of public knowledge. From time to time however, the FTC may come to the decision that disclosing some specific elements of the investigation as being necessary or appropriate. Equally, the agency may also deem it appropriate to share out information (even if it is confidential) with other government agencies.
Consumer Protection
Under the Federal Trade Commission Act the deceptive or unfair practices of commerce are deemed unlawful. Where deceptive practices are discussed this means those that involved misrepresentation and / or omissions that will mislead the average reasonable consumer. Where unfair practices are discussed this means those that may cause serious unavoidable injury to consumers.
Market Competition
The mission of the FTC is to enforce healthy competition between companies by enforcing specific legislations that are antitrust, including the Clayton Act. This prohibits certain methods of competition that are seen as unfair, like particular conduct that violates both that act and the Sherman Act. Under these acts, companies are prohibited from making certain acquisitions and would lead to a loss of competition within a specific marketplace.
Subpoena Vs. Civil Investigative Demand (CID)
The Bureau of Competition within the FTC uses subpoenas as a vital tool in conducting its investigations that look at violations of the ani trust and competition legislation. As part of the Federal Trade Commission Act, the agency is fully authorized to issue civil investigative demands (CIDs) where there are allegations of anti trust and competition violations. With a subpoena, demands for testimonies from witnesses or documentation can be made relating to the issue that is being investigated. CIDs are used to elicit testimony and request specific documents but they can also force recipients to answer specific questions and / or even produce written reports. When the FTC investigates accusations of deceptive or unfair acts or practices, all they are able to use is CIDs.
This demonstrates that the FTC has a wide level of authority through its investigative powers to elicit testimony and subpoena documents, as well as issuing CIDs that relate to both criminal and civil investigations.
Not Complying With A Subpoena
By failing to comply exactly with the terms set out in the FTC issued subpoena, it can have a seriously negative impact on your case. Not complying results in the agency seeking enforcement through the district courts system. In order to do this, the FTC must first file a petition of enforcement and then the individual involved would have to provide their response. On this basis, the court is then authorized to give compliance for this. If by this point the party does not fully comply with the terms and agreements of the subpoena, they may face great penalties for their display of contempt. At the same time, the individual may also be charged with obstructing the course of justice, as well as for giving false documentation to the United States FDA depending on the individual circumstances of the situation – both of these things are considered criminal offenses, which may lead, in the worst case scenario, to a jail sentence.
In some instances, an individual is able to challenge a subpoena where it is deemed that the terms are excessive, oppressive, and / or unreasonable. A specialist attorney who is experienced in handling the process involved in FTC subpoenas and investigations can help to determine if this is the case. Where this is so, an attorney can submit a petition in order to either limit or completely quash the subpoena altogether. At this stage, the FTC maintains the authority to decide whether to have the subpoena enforced or not.
Responding To A Subpoena
If a subpoena is received that asks for mountains of documentation from over a long period of time, it can be a worrisome experience for the individual party. Simply ignoring it can be highly detrimental and so it is important to respond to it in a quick and efficient manner with all of the requested information.
