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State AGs Coalition Urges FTC to Boost Consumer Fraud Collaboration

Federal Trade CommissionAugust 14, 2023Federal Trade Commission

Summary

Attorney General William Tong of Connecticut led a bipartisan coalition of 30 state attorneys general in submitting comments to the Federal Trade Commission. The comments aim to improve collaboration between the FTC and state AGs to prevent and prosecute unfair and deceptive practices, addressing issues raised by the AMG Capital decision that may limit restitution. The coalition emphasizes the importance of joint efforts for national consumer protection.

Contract Impact

In-house legal teams should review vendor, customer, and data processing agreements for clauses related to compliance with unfair or deceptive acts or practices (UDAP), restitution and remedy provisions, and obligations to cooperate with regulatory investigations. Specific attention should be paid to terms governing joint enforcement, cross-border matters, and the availability of state law remedies, as the coalition's comments highlight potential limitations on restitution following the AMG Capital decision. Agreements may need amendments to clarify cooperation protocols with both the FTC and state attorneys general, ensure alignment with the FTC Collaboration Act of 2021, and address the expanded use of state consumer protection laws in joint actions.

Contract Search Terms

unfair or deceptive acts or practices (UDAP)restitution remediesjoint enforcement agreementsstate attorney general cooperation clauseFTC Collaboration Act compliancecross-border enforcement provisionsconsumer fraud coordinationregulatory partnership termsremedy availability under state lawenforcement collaboration mechanisms

Laws Cited

FTC Collaboration Act of 2021

Violation Types

Entity Details

Entity

Federal Trade Commission

Industry

Other

Multistate Coalition

Official Sources

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