Senior FTC Official Issues A Rare Warning To Attorneys (And Their Clients)
On May 13, a senior official at the Federal Trade Commission (FTC) issued a rare warning to companies responding to the FTC’s formal and informal investigations, noting that attorneys practicing before the FTC create risks for themselves and their clients when they fail to meet the high standards set for FTC practitioners.
Bruce Hoffman, the Director of the FTC’s Bureau of Competition, penned a blog post noting that some FTC practitioners are failing their clients. He said he is aware of “circumstances where internal documents expressly contradict representations made by counsel and clients during investigations,” and some attorneys have “perceived opportunities to seek an advantage” within investigations “through misrepresentations of key facts.”
Director Hoffman said that attorneys who engage in such conduct, either intentionally or through carelessness, “undermine” their clients’ positions in any pending or future matters and create an environment in which FTC staff are likely to engage in “second-guessing of other representations” their clients make. He also noted that the FTC may “reprimand, suspend, or disbar” any attorney who knowingly or recklessly makes a false statement to FTC staff.
Director Hoffman’s statement highlights the importance of conducting a thorough internal investigation prior to making any representation to FTC staff, and also suggests that the FTC may in the future seek to publicly penalize conduct that fails to meet the high standards set for FTC practitioners.
Director Hoffman’s entire statement is available here.