How the FTC Uses Tolling Agreements During Civil Investigative Demand Investigations

To ensure that a constructive dialogue with parties does not come at the expense of justice for consumers, the Bureau of Consumer Protection – like many law enforcement agencies – routinely asks potential defendants and recipients of civil investigative demands (CIDs) to execute tolling agreements.   According to the FTC, “when parties sign a tolling agreement, they get the time needed to collect and produce information relevant to the investigation, draft written submissions, and engage in dialogue with the Commission.  And Commission staff can provide this additional time without impairing the Commission’s potential claims or relief.  This increases the likelihood of achieving a pre-litigation settlement or closing the investigation in appropriate cases.”

It should come as no surprise that the FTC strongly encourages parties to sign tolling agreements when staff requests them.  In situations where parties decline, agency  management and staff will take this into account when presented with extension requests, including to respond to civil investigative demands, and meeting requests.

Furthermore, in cases where the Bureau is recommending that the Commission authorize the filing of a complaint, Commissioners may decline to take meetings with parties if such meetings would impair the agency’s goal of protecting the public.  In such cases, the FTC may instead recommend that the Commission authorize the filing of a complaint in order to protect the interests of alleged harmed consumers.

Informational purposes only. Not legal advice. May be considered attorney advertising.