Attorneys: FTC’s Interpretation Of Penalty Offense Authority Yet To Be Tested In Court
Executive Summary
Attorneys are closely watching how the US Federal Trade Commission’s latest wave of penalty offense notices to almost 700 companies plays out, noting – as did recently departed commissioner Christine Wilson – that seeking civil penalties in court under this “long dormant” authority could be challenging.
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Companies Targeted By FTC Using Penalty Offense Authority Have Strong Defense, Attorney Says
John Villafranco, partner at Kelly Drye & Warren LLP, says the US FTC’s ability to obtain monetary relief using the penalty offense mechanism is questionable both on statutory and Constitutional grounds. Marketers faced with civil penalties – for example, for alleged inadequately substantiated health claims – should stand their ground, he suggests in a recent interview.
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