What Are the Biggest Challenges in FTC Cases?

At Cove Law, P.A., we have almost three decades worth of experience working with the FTC. The Federal Trade Commission, whose stated goal is to protect consumers from deceptive business practices, will bring their full power to any case which they investigate. For more information about their process, click here to read our Blog about the power that the FTC holds over businesses (yes, including yours.)

In all our time of defending businesses (telemarketing and otherwise) against the FTC, we have run up against the same challenges time and time again. At this point, we expect them. To learn the two biggest challenges that we face in FTC cases, first click here to watch a video from our founder, Andrew Cove.

As you saw in the video, the first major challenge we encounter in FTC cases is that the FTC freezes all of the client’s assets when they begin their investigation. This is not limited to assets from their business. It also includes all of your personal assets. This creates a number of problems for the client, as you can imagine, such as figuring how to pay for literally anything.

On the legal side, this particularly affects us because our client has to determine how they can pay for legal counsel. Clients under investigation by the FTC need to pay for legal defense, but they cannot access any of their own funds. This is a significant challenge in all FTC cases that we have discovered many potential solutions to over the years.

The second-largest challenge we face in FTC cases is the potential of criminal charges. Although they will never be served by the FTC, the client’s actions under investigation may lead to criminal charges from the Department of Justice. These charges sometimes happen simultaneously with the FTC investigation, but much more commonly are served after the fact.

This threat sometimes leads to the difficult decision that the client will rely on their Fifth Amendment rights and choose not to testify their side of the case. This is done to prevent saying anything that could incriminate themselves down the line. While this method may be effective in preventing criminal charges, it cripples the counsel’s ability to defend their case against the FTC. In some situations, this is the difficult choice that clients will have to make.

FTC cases are not to be taken lightly. Beyond the potential of criminal charges, a mere investigation from the FTC can have lifelong consequences on your business and your life. If you are dealing with an FTC case, contact Cove Law, P.A. today. We have been serving the telemarketing industry for over 25 years, and we will bring that wealth of experience to your case.

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