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FTC Establishes Streamlined Procedures to Help Maintain the Confidentiality of its Ongoing Investigations
The Federal Trade Commission has approved Rule 2.17, a new component in the agency's Rules of Practice. The new Rule streamlines internal procedures for staff to seek court orders that prevent certain FTC investigation targets from learning about subpoenas and civil investigative demands (CIDs) that seek information about their activities. The new Rule will improve efficiency and help safeguard the confidential nature of ongoing agency investigations.
Under the new rule, either an individual commissioner or the agency's General Counsel may authorize the FTC staff to file court actions, when necessary, seeking to delay notifying targets of investigations that subpoenas and CIDs have been used, and prohibiting recipients of subpoenas and CIDs from disclosing to targets that they have been used. This will help the agency prevent likely fraudsters from discovering that the FTC has requested information about them from third parties, when such disclosure would tip them off or otherwise jeopardize the internal investigation.

§ 2.17 Statutory delays of notifications and prohibitions of disclosure.

Upon authorization by the Commissioner who issues compulsory process pursuant to §2.7(a) or, alternatively, upon authorization by the General Counsel, Commission attorneys may seek to delay notifications or prohibit disclosures pursuant to the Right to Financial Privacy Act (12 U.S.C. 3409), the Electronic Communications Privacy Act (18 U.S.C. 2705), or section 7 of the U.S. SAFE WEB Act (15 U.S.C. 57b–2a).
[76 FR 54691, Sept. 2, 2011]

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