In a March 10 blog post, the new Director of the FTC’s Bureau of Consumer Protection (BCP) reaffirmed the agency’s commitment to enforcing consumer protection laws through Civil Investigation Demands (CIDs). 

A CID is a legally enforceable demand requiring recipients to provide requested documents, testimony, reports, or other information. The FTC issues CIDs to entities and individuals it believes may have violated the law, as well as to third parties who may possess relevant information.

The FTC expects full and timely compliance with CIDs, and failure to respond can lead to legal action, including judicial enforcement. While BCP may work with recipients to tailor requests or adjust response deadlines, recipients must initiate such discussions well in advance. Additionally, recipients are generally required to meet with FTC staff soon after receiving a CID. Although this requirement can be waived, the meeting provides a crucial opportunity to raise and address any compliance challenges.

Putting It Into Practice: The new BCP Director’s first blog post since his appointment highlights the FTC’s continued focus on financial institutions and fintech companies that engage with consumers. Businesses and individuals that receive a CID should

• Act Promptly: Track all deadlines and contact the FTC staff identified in the CID to discuss compliance.
• Seek Legal Counsel: Consult with experienced legal counsel to ensure appropriate and timely responses.
• Engage Cooperatively: Proactively communicate with the FTC, as the agency may consider adjustments to requests or deadlines.

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