CROSS-BORDER CONSUMER PROTECTION LAW ENFORCEMENT: INVESTIGATIVE

CROSS-BORDER CONSUMER PROTECTION LAW ENFORCEMENT: INVESTIGATIVE CHALLENGES 7th African Dialogue Conference Cairo, Egypt 17-20th August 2015 U.S. FEDERAL TRADE COMMISSION

This is not an official statement of Federal Trade Commission. For official views of the FTC and FTC Commissioners, go to: www.ftc.gov.

Session Overview The aim of this session is to share cross-border law enforcement techniques and best practices, with a focus on evidence in investigations. Panelists Charles Harwood, FTC Mary Gurere, COMESA Africa Apollo, Interpol Diane Terblanche, NCT South Africa . . . .

FTC International Collaboration More than 100 investigations with international components More than 50 cases involving cross-border components in last 8 years Provided evidence in response to more than 60 information-sharing requests from at least 17 foreign law enforcement agencies. More than 50 civil investigative demands (equivalent to administrative subpoenas) in at least 21 investigations on behalf of foreign law enforcement agencies. In US SAFE WEB Act cases alone, has collected more than 10 million in restitution for injured consumers and has stopped frauds costing consumers hundreds of millions of dollars.

Misleading Claims Investigation Complaints Evidence of the Claim Who What When Where How Consumer “Injury” Possible Violations The Money Trail Effective Action

Challenges in Investigating Misleading Claims Getting evidence of the claims made to consumers (and the falsity of those claims) o Evidence must be valid Finding those responsible for the claims Finding the money Moving fast Effective relief

Pharmacycards

Strategies for International Investigations Evidence Complaints and related information Agency investigative records Public records Businesses used by targets Targets Evidence with no border complications? Voluntary sharing? Investigative assistance Informal Use of formal authority Follow the money: financial institutions Important: Know storage, sharing and use restrictions for materials obtained

Investigative Tools (No passports, visas, shots, or declarations required)

No Border Complications: Complaints Consumers News sources Online resources: o Caller ID complaint sites: Whocalled.us/ Whocalled.net Whocallsme.com 800notes.com Many more! o Online forums o Online complaint sites

econsumer.gov

No Border Complications: Claims Media Broadcast and print advertising News stories Mail marketing Informal Use of formal authority

No Border Complications: Claims Websites o Tools to capture and preserve Camtasia (create a video of the screen) Adobe Professional Web Capture (create a PDF of the website) Snag-it (take a screenshot) Teleport Pro and Grab-A-Site (create a copy of the website for offline viewing) Mobile capture tools And many Mobile device websites and apps

No Border Complications: www.archive.org View prior versions of web sites and search for other types of media (NOTE: six month delay)

No Border Complications: Claims Online resources: Caller ID complaint sites: Whocalled.us/ Whocalled.netYou’ve won a FREE trip to Whocallsme.com Cairo and we’ll throw in a pay 800notes.com day loan too-all for only 500! Many more! Online forums Online complaint sites

No Border Complications: Targets Online corporate, property, and legal records Social Networking sites (Facebook, LinkedIn etc.) Internet searches Press releases News articles and comments Maps (Google Earth and other products) Website registration records

No Border Complications: Whois Records? Whois databases store the domain’s registration information Contact information for the site’s operator Not all Whois databases search all TLDs ANY OF THE WHOIS INFORMATION CAN BE (AND OFTEN IS) FALSIFIED OR INCOMPLETE!! But often the same false information is used (or the same host or registrar) which can help link sites together

No Border Complications? Consumer injury? Follow the money? Is there a violation? Can meaningful results be obtained?

No Border Complications: Education Consumer and business education Trend analysis Media

Investigative Tools (Border crossing ahead, have your documents ready!)

Border Complications Access to information? Complaints and related information Agency investigative records Public records Information from businesses used by targets Financial information about targets Informants Targets Investigative assistance Informal Use of formal authority Meaningful results

Border Complications: Complaints Complaints and related information Finding and processing Voluntary access Restrictions on use Retention restrictions Validating authenticity Confidentiality of request Similar issues concerning other information

Border Complications: Investigative Assistance Obtaining records Conducting interviews Locating informants and targets Providing authentication information Assisting with legal action

Border Complications: Voluntary Sharing

Border Complications: Laws to Help Overcome U.S. SAFE WEB CASL Criminal MLAT International Conventions

U.S. SAFE WEB FTC may share confidential information in its files in consumer protection matters with foreign law enforcers Requesting agency must certify that the information will be maintained in confidence and used only for official law enforcement purposes. Requested material may only be used for investigation of violations of laws prohibiting deceptive commercial practices or other practices substantially similar to practices prohibited by a law administered by the FTC. FTC may conduct investigations and discovery to help foreign law enforcers in appropriate cases; appropriate determined by considering whether: the requesting agency has agreed to provide reciprocal assistance to the Commission; granting the request would prejudice the public interest; the requesting agency’s investigation or enforcement action concerns practices that have caused or are likely to cause injury to a significant number of persons. Protects information provided by foreign enforcers to FTC from

Border Complications: Effective Resolution Money Punishment Disruption Education