Officers, directors, and management-level employees of corporate entities often fail to recognize that they can be held personally liable under the Federal Trade Commission Act (FTC Act)1. In fact, in recent years, the Federal Trade Commission (FTC or Commission) has increasingly brought actions against individuals in their personal capacity, and has held such individuals jointly and severally liable with other named individual and corporate defendants for the total amount of consumer injury. Liability can be imposed even in situations where individuals do not have actual knowledge of the alleged corporate wrongdoings, and do not have any express intent to defraud consumers.
This article addresses the breadth of individual liability in the context of actions brought by the FTC’s Bureau of Consumer Protection, and highlights ten aspects of individual liability that should be considered by corporate officers, directors, and other management-level employees.
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