In Divided 3-2 Vote, Federal Trade Commission Authorizes Three Omnibus Compulsory Process Resolutions

On August 26, 2022, the Federal Trade Commission (FTC) voted 3-2 to authorize two new omnibus resolutions permitting compulsory process and to revise a third, which was approved last year. These resolutions allow FTC staff to conduct investigations into key enforcement areas without first obtaining approval of the full Commission. The three compulsory process resolutions concern: (1) collusive practices; (2) the car rental industry, and (3) mergers, acquisitions, and transactions. The last category was approved by an omnibus resolution last year and was updated by this recent vote.

The FTC uses the compulsory process in its investigations through the issuance of demands for documents and testimony via civil investigative demands (CIDs) or subpoenas. The FTC Act authorizes the Commission to use compulsory process, which requires the recipient to produce information, and these orders are enforceable by courts.