Tips for Responding to FTCCivil Investigative Demands

(CIDs)Presenters: Karl S. Kronenberger & Liana W. Chen

November 30, 2016

© 2016 Kronenberger Rosenfeld, LLP

Who Are We?

Karl S. Kronenberger Liana W. Chen

Full Bio Full Bio

General Investigative Powers of the FTC

• Consumer protection and antitrust• Law enforcement and regulatory

powers• Informal v. formal investigations

FTC Remedies and Processes• Broad range of remedies

– Monetary redress (restitution, disgorgement, civil penalties)

– Non-monetary (TRO, asset freeze, receiver, injunction)

• Compulsory process– CIDs and subpoenas– Enforceable in federal court– Penalties may be invoked

Strategies for Avoiding FTC Radar• Review triggers for investigations

– Consumer Sentinel Network– Consumer complaints and other

• Implement compliance policies– Call center– Advertising, data privacy, and other

FTC Civil Investigative Demands (CIDs)

• Statutory authority (15 U.S.C. § 57b-1)

• What is a CID? – Documents– Tangible things– Written reports/answers– Oral testimony

• Under sworn certificate/oath

FTC Civil Investigative Demands (CIDs)

• CID requirements– Nature of conduct and law– “Relevant” to investigation– “Definiteness” and “certainty”– Proper service

• Importance of response

CIDs v. Subpoenas

• Antitrust v. consumer protection

• Both used for documents and testimony

• CIDs may require written answers to questions and production of tangible things

Tips for Responding to CIDs

• Start compliance and response• Preserve confidentiality• Engage counsel

– Discuss deadlines, scope, and purpose– Evaluate response and implications– Preserve objections

• Wait patiently

Response Tactics and Defenses

• CID limitations• Petition to limit or quash

– Must meet and confer– Grounds– Considerations

• Importance of counsel

Summary of Tips for Responding to CIDs

• Implement compliance policies• Calendar deadlines and preserve

documents• Engage experienced counsel• Meet and confer with FTC• Consider petition to limit or quash, delayed production

Conclusion, Q&A

Karl S. KronenbergerKarl@KRInternetLaw.com(415) 955-1155 ext. 114

150 Post Street, Suite 520, San Francisco, CA 94108www.KRInternetLaw.com

Liana W. ChenLiana@KRInternetLaw.com(415) 955-1155 ext. 118