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.

Richard Newman

Richard B. Newman is a nationally recognized FTC advertising compliance, CID investigation and regulatory enforcemetn attorney. He regularly provides advertising counsel and represents clients in high-profile investigations and enforcement proceedings initiated by the Federal Trade Commission, state attorneys general, departments of consumer affairs, and other federal and state agencies with jurisdiction over advertising and marketing practices. Richard is also an ecommerce lawyer and spam defense attorney. His practice additionally focuses upon false advertising defense, data privacy, cybersquatting, intellectual property law and transactional matters relating to the dissemination of national advertising campaigns, including the gamut of affiliate marketing, telemarketing, lead generation, list management and licensing agreements. Richard advises clients on how to minimize the legal risks associated with digital marketing, email marketing, telemarketing, social media influencer campaigns, endorsements and testimonials, negative option marketing models, native advertising, online promotions and comparative advertising,





About This Blog and Hinch Newman’s Advertising + Marketing Practice

Hinch Newman LLP’s advertising and marketing practice includes successfully resolving some of the highest-profile Federal Trade Commission (FTC) and state attorneys general digital advertising and telemarketing investigations and enforcement actions. The firm possesses superior knowledge and deep legal experience in the areas of advertising, marketing, lead generation, promotions, e-commerce, privacy and intellectual property law. Through these advertising and marketing law updates, Hinch Newman provides commentary, news and analysis on issues and trends concerning developments of interest to digital marketers, including FTC and state attorneys general advertising compliance, civil investigative demands (CIDs), and administrative/judicial process. This blog is sponsored by Hinch Newman LLP.

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