Consider Contracts That Limit Disclosure Void, Says FTC

The FTC’s Bureau of Competition has created its own Criminal Liaison Unit to refer potential unlawful conduct uncovered during FTC investigations to appropriate criminal prosecutors. Bureau Director Holly Vedova says the new unit “is particularly focused on deterring companies and their executives from obstructing FTC investigations.” Non-disclosure and confidentiality agreements, along with certain merger agreement provisions and some existing contracts with employees and third parties could be targets, especially if they limit the disclosure of information.  According to the Bureau, voluntary interviews “are essential to help [them] understand real-world dynamics and effects,” and “reduce unnecessary burdens on marketplace stakeholders and Bureau staff.” In the statement, the Bureau asserts that certain contractual restrictions impede investigations, and should be considered void. It cites case law for the proposition that contracts cannot impede discussion with administrative agencies.