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. [email protected](415) 955-1155 ext. 114
150 Post Street, Suite 520, San Francisco, CA 94108www.KRInternetLaw.com
Liana W. [email protected](415) 955-1155 ext. 118
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