Representing a franchisor in litigation with the FTC

Article Abstract:

Franchisor-FTC litigation necessitates counsel understand the elements required to be proven by the FTC to win its case. Counsel can utilize defense strategies based on FTC Act sec. 5, sec. 13(b), or Commission rules. The limitations statute or previously-signed releases are also available defenses. A hypothetical example is offered to explain the FTC's burden of proof and to highlight the statutes governing both potential defense strategies and evidence of liability.

Methods, Defense (Civil procedure)

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Representing a franchisor in an FTC investigation

Article Abstract:

A FTC investigation of a franchisor can include receipt of an access letter, as well as information-gathering compulsory procedures such as civil investigative demands (CIDs) for depositions, interrogatories, or document production. CID rules are similar to civil discovery rules; franchisors can challenge the CID in several ways. A consent order agreement generally is the best way to dispose of cases in which the FTC finds the franchisor at fault.

Investigations

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FTC enforcement

Article Abstract:

The FTC's Project Telesweep is an enforcement effort targeting fraud by vending machine sellers and other business opportunity sellers. In the 1996 Wolf case, the FTC successfully proved fraud, resulting in heavy fines and injunctions. The FTC's Project Buyline will similarly target fraud by sellers of 900 number telephone lines.

Fraud, Vending industry, Vending machines industry

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