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What You Need to Do When You Receive a CID

A CID is a request for information and records are regarding a civil investigation issued by the FTC (US Federal Trade Commission). 

While they can be challenged, it would be under very limited circumstances and can cause devastating consequences. And most of the time, you would still need to do the CID. It would just cut information off the request or add some time to the deadline instead of cancel the CID.

The first thing in someone’s best interests in this situation would be to hire an attorney. A CID Defense lawyer, to be exact. CID defense lawyers can help with paperwork and the deadlines, as well as much more.

If you receive one of these, your company is being investigated for acts deemed unfair or deceptive. These can be unwelcome, but it isn’t something you drive yourself mad over

What is a CID?

I’ve briefly gone over what a CID is, but they’re not something you want to take without seriousness.

CIDs are federally-issued requests for information on a company whose actions have been deemed unfair or deceptive. These requests can ask for records, emails, text messages, paper files, etc. It is also capable of requesting written reports or answers to questions.

When federal agencies are investigating healthcare providers and other businesses, they have the right to issue a Civil Investigative Demand (otherwise known as a “CID”). 

These letters can be challenged in court, but it’s under very limited circumstances and can bring terrible consequences and even charges against the law.

While the FTC can use many other means of collecting information for these investigations, a CID holds a fair amount of power and enforceability, and if you decide not to comply, you can end up in court.

What to do If You Get a CID

If you do get a CID, it will most likely be very worrisome. But, don’t worry just yet! This doesn’t mean that you’ll be imprisoned, your company will go bankrupt or you’ll be fired.

A CID usually calls for the production of multiple documents, quite possibly a testimony, and other information regarding the investigation. Remember to keep calm, this doesn’t mean that your life will be a mess if you do receive a CID.

Despite this, you’re going to need to comply with the CID. In this situation, the most reliable course of action would be to hire a professional CID Defense Lawyer. They can decide the importance of the CID, and help you determine what the FTC wants. 

They can also help you produce information and documents. 

Here are some of the top CID defense lawyer firms: 

CID’s also have deadlines. A CID defense lawyer can help you figure out the effort needed to produce the requested info and help you comply with the deadlines. Furthermore, a defense lawyer would advise you on stopping any procedures that would destroy the needed documents. This is very important as further destruction of information related to the investigation is prohibited. 

Challenging a CID

As I said before, it is possible to challenge a CID, though it would be under very limited circumstances.

When I say limited, I mean very limited. Federally, you can only challenge a CID on four grounds:

  1. If the CID requests information that it is already in possession of;
  2. If the CID requests information that is not related to the investigation;
  3. If the CID imposes an unnecessary burden on the recipient based on the scope of the investigation, also factoring the amount of information requested.
  4. If the CID overuses its judicial power.

And even with this, it’s unlikely that challenging a CID would result in not having to comply with its requests. It would only make the CID easier to comply with or more understandable. This can help, though. If you have a tough deadline and you doubt you’ll be able to get all the information before then, this might be just what you need.

What Happens After Submission?

After the recipient has complied with the requests of the CID, they wait. Staff will review the submitted information to judge whether further action is needed. Depending on the amount of information, the scope, and the nature of the information, this process can take a while.

After reviewing the information, the staff will choose what they want to do with the investigation. They will decide whether the presented information is sufficient to lead to the closing of the investigation.

If the staff deem the information insufficient, the investigation will be continued or one or more of the parties will be charged with violations of federal law. In this case, you can expect the agency to contact the charged party about negotiating a settlement, but otherwise, the agency may file a lawsuit.

Everything You Need to Know

I think it’s pretty self-explanatory after reading the above, but just in case you had trouble catching on, here’s a summary. 

CID’s are federally issued requests for information sent to someone related to a party or directly under investigation for actions deemed unfair or deceitful. These requests can request all sorts of information such as emails, text messages, or even social media posts.

a person writing on a piece of paper

If these requests aren’t complied with by the receiver, the outcomes can be disastrous, sometimes even resulting in contempt charges. 

If you do receive a CID, the first thing you should do is hire a CID defense attorney (also known as FTC defense attorneys, FTC investigation attorneys, and CID attorneys.) They can help you process the information and files, assess the scope of the request, and help you finish everything within the deadline. 

Once you’ve finished with the information requested by the CID, it’s likely that now you need to wait for a testimony. This is where FTC staff will decide whether the investigation can be called off or whether the party will be charged against federal laws. If the latter is the result of the testimony, it’s likely that someone will reach out with the interest of negotiating a settlement, with a lawsuit only happening in the rare occasion that negotiation isn’t the outcome of the decision made by the FTC staff.

The post What You Need to Do When You Received a CID was first published on Coworkaholic.

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