In an April 8 FTC Business Blog post, Bureau of Consumer Protection (BCP) Director Christopher Mufarrige underscored the importance of proactive and rigorous economic analysis in consumer protection investigations where the FTC is seeking monetary relief. Businesses responding to a Civil Investigative Demand should be prepared to substantively engage with both BCP and the FTC’s Bureau of Economics (BE), consistent with BE’s recently expanded Economics Best Practices guidance.
Key Messages from the FTC
Director Mufarrige emphasized that BCP works closely with BE and continues to prioritize economic analysis to evaluate consumer harm. While acknowledging that it is often not possible for BCP to estimate the economic harm at the outset of an investigation, Director Mufarrige stated that BCP will endeavor to provide general information about its theories of economic harm and BE’s empirical analysis when it sends businesses draft complaints and orders seeking monetary relief.
Businesses under investigation should be prepared to promptly engage with and respond to this economic analysis. The FTC’s guidance outlines clear expectations for businesses under investigation:
- Assumption of BE Involvement: In matters seeking monetary relief, businesses should plan for active BE participation.
- Early, Substantive Engagement: Businesses should be prepared to address economic issues as soon as they receive a draft complaint and order, or potentially even earlier.
- Data That Enables Analysis: Companies should provide rigorous economic analysis and be prepared to explain their methodology instead of relying on summary conclusions, because BE is less likely to engage with summaries.
Combined with the expanded application of BE’s Economics Best Practices guidance (typically more associated with antitrust analysis) to BCP investigations, this post reinforces the importance of early substantive engagement with BCP and BE on economic issues.
Practical Takeaways
- Treat economic analysis and BE engagement as a core aspect of strategy.
- Prepare data and analysis so BE economists can easily understand and engage.
- Engage early on theories of consumer harm.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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