FTC warning letter Attorney

Richard Newman assists companies and invididuals that have received FTC warnings letters.  Recepients turn to FTC warning letter attorney Richard Newman to resolve legal regulatory issues raised in FTC warning letters and to mitigate liability exposure for conduct referenced in FTC warning letters.

What is an FTC Warning Letter?

FTC warning letters can outline a broad spectrum array of purportedly deceptive practices the FTC has determined to be unfair or deceptive.  Eliminating false or misleading information from the marketplace is a key objective of the Federal Trade Commission.  According to the FTC, "one of the most effective ways the agency does that is by sending warning letters to companies that may be violating the FTC Act."

The purpose of FTC warning letters is to warn companies that their conduct is likely unlawful and that they can face serious legal consequences, such as a federal lawsuit, if they do not immediately stop.  Companies that receive FTC warning letters should consult with an experiences FTC warning letter lawyer in order to take steps to correct problematic advertising or marketing practices and come into compliance with applicable legal regulations.

Experienced FTC Warning Letter Attorney 

FTC warning letters can be precursors to investigations and lawsuits.  If you or your company have received and FTC warning letter, contact an experienced FTC warning letter attorney promptly in order to evaulate potential liability exposure and next steps, including, but not limited to, interaction with FTC staff and the implementation of protocols designed to minimize potential liability exposure.

FTC Warning Letter Lawyer on Some Things to Keep in Mind About FTC Warning Letters

According to FTC warning letter attorney Richard Newman, when FTC warning letters are sent to companies, their purpose is to warn of possible law violations.  Warning letters are not formal enforcement actions, and they may or may not be followed by FTC legal action.

FTC warning letters typically include an explanation of why the company is receiving the letter and examples of problematic advertising or marketing language.  They require the recipients to correct the problem immediately and contact the FTC within several days to confirm that they have made the required changes.

The FTC may send warning letters unilaterally or jointly with other enforcement agencies.

For example, the FTC joined the FDA in sending letters to the marketers of products and treatments falsely claiming they could either treat or cure COVID-19.  The FTC also joined the FCC in sending warning letters to VoIP service providers about facilitating illegal robocalls.

The FTC also issued its own warning letters to MLM marketers regarding false COVID-19 treatment or cure claims and earnings claims made by the marketers and their participants.

Finally, while FTC or joint agency warning letters may be public, recipients’ responses to them usually are not.  After sending the letters, the FTC will not comment on whether a company or individual has received them, whether they have contacted the FTC within the amount of time required, or what they told the agency about their planned response.

What is the Difference Between an FTC Warning Letter and an FTC Notice of Penalty Offense?

Civil penalties can help the Federal Trade Commission deter conduct that it believes harms consumers.  Because civil penalties can exceed what a wrongdoer earned through their misconduct, penalties send a  message that is intended to deter similar future conduct.

One way the FTC can obtain penalties against a company that acted unfairly or deceptively is through the Penalty Offense Authority.  Under this authority, the FTC can seek civil penalties if it proves that (i) the company knew the conduct was unfair or deceptive and (ii) the FTC had already issued a written decision that such conduct is unfair or deceptive.

In order to trigger this authority, the FTC  can send companies a “Notice of Penalty Offenses.”  This Notice is a document listing certain types of conduct that the FTC has determined to be unfair or deceptive.  Those that receive this Notice and nevertheless participate in such conduct potentially face harsh monetary civil penalties.

That a company is sent a Notice of Penalty Offense for deterrence purposes and receipt of one does not necessarily indicate that the FTC has reason to believe the law has been violated.