It’s always a little worrying to receive a subpoena from the Federal Trade Commission (FTC). However, it’s important that you stay calm and figure out a strategy for responding to the subpoena effectively. After all, this is your chance to defend yourself against whatever unfair marketing practices you are accused of—it’s crucial you give your business a fair shot at success.
But with that in mind, how do you answer an FTC subpoena, and why did you receive a subpoena in the first place? And is there anything you should avoid doing when you answer an FTC subpoena? Our FTC defense lawyers answer these questions and more below.
What Is an FTC Subpoena?
An FTC subpoena is a legal document allowing the Federal Trade Commission to gather documents, testimony, or other evidence from businesses and individuals. So, if you’re accused of unfair or deceptive marketing practices, then the FTC can require you to submit documents allowing them to investigate the claims.
- If you receive a subpoena, you’re typically obliged to comply, but your attorney can explain what rights you may have to challenge any documentary requests.
- Should you fail to comply, the FTC can seek a court order to enforce the subpoena.
- The investigations can lead to civil, administrative, or criminal penalties, depending on the outcome of your case.
Types of FTC Subpoenas
The FTC can use 3 types of subpoenas to gather evidence to obtain records and information from the parties involved. These are:
- Civil Investigative Demands (CIDs): A type of civil subpoena requiring you to submit documents, records, and testimony, but also written reports and answers where appropriate.
- Commission-Issued Subpoenas: A subpoena requiring you to provide not only documentation and written submissions, but oral testimony which the FTC can collect.
- Judicial Subpoenas: If you’re facing possible criminal charges, you may receive a judicial subpoena. The penalties for failing to comply with a judicial subpoena can be especially severe.
Your FTC defense attorney can explain what your subpoena means and your options for responding.
Why Have I Received an FTC Subpoena?
The FTC is responsible for investigating a variety of federal offenses committed by companies of all sizes.
These investigations can cover various activities, including advertising, marketing, and consumer protection, so it has broad authority to investigate companies that engage in deceptive or unfair marketing practices.
What does this mean for you? Well, you’ve received a subpoena because you are the subject of such an investigation. For example, maybe you’re accused of misleading advertisements, or selling health or food products without scientific evidence to support claims.
That said, the FTC can subpoena anyone who has information relevant to the investigation, including witnesses, employees, officers, and directors of companies, as well as third-party entities such as banks, accounting firms, and advertising agencies.
The FTC may also subpoena documents, such as contracts, emails, financial records, and marketing materials.
Failure to comply with a subpoena or a court order to enforce a subpoena can result in serious consequences, including fines, penalties, and even imprisonment in some cases.
You might be wondering, “Does receiving an FTC subpoena mean I’m in trouble?” Not necessarily, but it’s advisable to call a lawyer.
How to Respond to an FTC Subpoena: Dos and Don’ts
If you receive an FTC subpoena, it is important to respond promptly and appropriately. So, here’s what you should—and shouldn’t—do to respond to an FTC subpoena.
- Do read the subpoena carefully. Ensure you understand what the FTC requires and your deadlines for responding.
- Do consult with an FTC defense attorney. Your attorney will protect your legal rights and help you navigate the FTC investigation.
- Do identify relevant documents. Stop any procedures which may mean deleting documents that could be relevant to the investigation.
- Do prepare a written response. This is your chance to respond to the investigation and tell your side of the story. You should consult an experienced FTC defense lawyer to help you craft a compelling, succinct, yet effective subpoena response.
- Do submit your response to the FTC. Always comply with submission deadlines and submit by the method requested e.g., email or physical mail.
So, if that’s what you should do, here’s what you should avoid doing.
- Don’t ignore the subpoena. Ignoring a subpoena could mean penalties such as financial fines or even contempt charges.
- Don’t try to handle the matter alone. Receiving an FTC subpoena is too significant to risk leaving any aspect of your defense to chance!
- Don’t forget to follow up with the FTC. Confirm the FTC received your response and required documentation.
- Don’t leave it to the last minute to respond. This creates unnecessary stress and increases the risk of overlooking a key detail, or omitting a relevant document.
What Is the Deadline for Responding to an FTC Subpoena?
The subpoena will usually specify the deadline to produce the requested documents or information. You should respond ASAP after consulting with an attorney and crafting a game plan.
If you need additional time to comply with the subpoena, you may be able to negotiate an extension with the FTC.
It’s important to take the FTC subpoena seriously and seek the advice of an FTC defense and business litigation attorney if you have any questions or concerns.
What Happens After I Respond to an FTC Subpoena?
After you respond to an FTC subpoena, the FTC will review the information or documents you provided and determine whether it has obtained the information it sought.
Depending on the nature of the investigation, the FTC may take one or more of the following actions:
- Close the investigation: If the FTC determines that the information or documents you provided fully satisfy its inquiry, it may close the investigation and take no further action.
- Request additional information: If the FTC determines that it needs more information or documents to complete its investigation, it may issue a follow-up subpoena or request additional information from you.
- Initiate legal action: If the FTC determines that there is evidence of a violation of law, it may initiate legal action against the company or individuals involved.
It’s important to note that even after you respond to an FTC subpoena, the agency may continue to investigate the matter and request additional information from you or others.
It’s always a good idea to consult an attorney to ensure you comply with the subpoena properly and protect your legal rights.
How Do I Challenge an FTC Subpoena?
You can challenge an FTC subpoena in certain situations.
For example, if you believe the subpoena is too broad, unfairly demanding or if you believe that it seeks information or documents that are protected by the attorney-client privilege or other legal protections.
To challenge an FTC subpoena, you would typically need to file a motion to quash the subpoena in the appropriate court.
We recommend you consult with an attorney with experience in FTC investigations and subpoenas before filing a motion to quash.
An experienced FTC defense attorney can advise you on your legal rights and obligations and help you determine whether you have grounds to challenge the subpoena.
Unsure How to Respond to an FTC Subpoena? Contact Gordon Law Today!
If the FTC comes knocking, don’t feel like you must handle the situation alone. An FTC subpoena is a serious matter, and your business deserves a fair shot at overcoming this challenge.
That’s where you can rely on Gordon Law. Our FTC defense lawyers have successfully helped numerous companies—from small businesses to Forbes 500 companies—face FTC investigations. And we will use our knowledge of FTC marketing investigations to defend your rights, explain your options, and devise a strategy for your defense.
Get the peace of mind you deserve by knowing you have experienced lawyers on your side. Call the Gordon Law team today or reach us online to schedule a consultation.
