FTC seeks to work with states on combatting fraud

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On June 7, the FTC announced it is soliciting public comments on how the Commission can work more effectively with state attorneys general to prevent and inform consumers about potential fraud. The FTC said in its announcement that the agency and the AGs share a common mission to protect the public from “deceptive or unfair business practices and from unfair methods of competition through law enforcement, advocacy, research, and education.” The request for public comments comes as a result of the FTC Collaboration Act of 2021 (the “Act”), which requires the Commission to not only solicit public comments, but also to consult directly with interested stakeholders. Signed into law last year, the Act directs the FTC to conduct a study on how to streamline and leverage the relationship between the Commission and the AGs to better protect Americans from fraud and hold those committing malicious acts accountable. The FTC requests comments specifically regarding: (i) the roles and responsibilities of the Commission and AGs that best advance collaboration and consumer protection; (ii) how resources should be dedicated to further such collaboration and consumer protection; and (iii) the accountability mechanisms that should be implemented to promote collaboration and consumer protection between the FTC and AGs.
 

The completed report will be submitted to the House Committee on Energy and Commerce and the Senate Committee on Commerce, Science, and Transportation. Comments are due 60 days after publication in the Federal Register.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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