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What happens when a consumer files a complaint with the Federal Trade Commission?

Posted by Clyde Hutchins | Aug 26, 2016 | 0 Comments

What happens when a consumer files a complaint with the Federal Trade Commission?

One of the options that consumers think of when they have a consumer complaint against a company is to file a complaint with the Federal Trade Commission (FTC). The FTC is the nation's main consumer protection agency. It has broad powers to address companies that engage in unfair or deceptive acts or practices. Most people are unsure of what happens after they file a complaint. Does the FTC open a case for them? Does the FTC arbitrate or negotiate for them? Does the FTC sue the company? What happens?

The FTC does not open a case for you

After devoting several years to leading the consumer protection unit of the Wyoming Attorney General's Office, and being engaged in joint cases with other states and the FTC, I learned many things about how the FTC handles consumer complaints. First, the FTC does not open cases for individual consumer complaints. A consumer will not have a case opened for them, or have the FTC negotiate on their behalf. There are far too many consumer complaints for the FTC to handle matters that way. Additionally, the FTC's authority is focused on consumers as a whole nationwide. Its attention is not focused on individuals. When the FTC acts, it is doing so on behalf of the general public.

The FTC takes action when there are lots of complaints about a company

Second, the FTC does bring enforcement actions against companies based in part on consumer complaints. The number of complaints and the seriousness of the alleged harms are factors that go into the FTC's decision on whether to bring an enforcement action against a particular company. There are other considerations too. Altogether, the FTC's decision to act against a company is the accumulation of many different factors including the consumer complaints filed with the FTC. If a company is receiving a high volume of consumer complaints filed with the FTC, that company is going to be more likely to receive attention from the FTC.

Complaints filed with the FTC give the FTC intelligence on bad company practices

Third, the consumer complaints provide insight in to how companies act towards consumers and trends in unfair or deceptive practices and acts. The FTC publishes an annual report that shows the types and numbers of complaints. The annual report gives a snapshot of the consumer complaints nationwide that have been filed with the FTC.

There is help for individuals like you

Although your consumer complaint may be ignored by the FTC or lost in a pile of other consumer complaints, you do have options to resolve the matter. Oftentimes, a consumer complaint can be handled by a private attorney instead of the FTC. There are numerous laws that provide for private enforcement of consumer protection laws. If you want a consultation regarding your consumer complaint, contact Harmony law through our website or call (970) 488-1857. We may be able to provide a consultation. Consultations are $265, paid in advance. Consultations can be done over the telephone or in person.

To find our more about how Harmony Law operates, check out Harmony Law's reviews.

About the Author

Clyde Hutchins

Clyde Hutchins is the founder of Harmony Law. Mr. Hutchins started his legal career in Cheyenne, Wyoming as a law clerk for the district court judges. Mr. Hutchins then entered private practice with a Wyoming based litigation and business law firm. Later, Mr. Hutchins went to Alaska, where he was the chief litigator for a firm that engaged in bond law, corporate law, securities law, and municipal law. The State of Wyoming hired Mr. Hutchins from Alaska to represent the State of Wyoming in the national tobacco arbitration and act as its tobacco settlement attorney. While in that position, as a hobby, he developed an enforcement unit for consumer protection for Wyoming residents. Mr. Hutchins moved to Colorado in 2016 and founded Harmony Law, LLC. Harmony Law is primarily engaged in civil litigation. It is also a general practice firm in the areas of business law, estate planning, consumer law and family law. Harmony Law is active in all state and federal courts throughout Wyoming and Colorado.

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