FTC Guidance on Private Right of Action

By Published On: August 15th, 2022

Samuel Levine, the Director of the Federal Trade Commission’s Consumer Protection Bureau recently published a blog post on the FTC website, giving guidance on a possible private right of action available to consumers (franchisees) who have been harmed by alleged franchisor violations of the FTC Franchise Rule. In the post, while stating that neither the FTC Act nor the Franchise Rule creates a private right of action allowing consumers to sue a franchisor under those laws, nothing in the FTC Act or Franchise Rule precludes franchisees from exercising their legal rights under state law. “Simply put, the FTC Act and the Franchise Rule impose no roadblock to consumers seeking justice under state law.” Depending on state law, this may guidance from the FTC may open the door for franchisees to take action against unscrupulous franchisors.

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Keith Miller

Trustee and Director of Public Affairs and Advocacy

Keith is the AAFD preeminent voice for political action in support of franchisee rights at both the Federal and State level. Keith has been an active leader and voice for franchisee causes over the past twenty plus years, with a growing track record of bringing franchisee friendly legislation introduced and adopted throughout the USA. Keith is also a multi-unit Subway franchisee, and understands the challenges and opportunities that come with being in business for oneself. He is passionate about protecting the interests of franchisee business owners, and will work tirelessly to ensure that they are treated fairly under the law.

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