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FTC Guidance on Private Right of Action

| Aug 15, 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 guidance from the FTC may open the door for franchisees to take action against unscrupulous franchisors.




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