FTC PENALTY MITIGATION LETTER

DOCUMENT INFORMATION

PART I: LETTER TEMPLATE

[COMPANY LETTERHEAD]

[Date]

VIA [EMAIL/FEDEX/HAND DELIVERY]

[FTC Attorney Name]
[Title]
Federal Trade Commission
Bureau of Consumer Protection
[Division Name]
600 Pennsylvania Avenue, NW
Washington, DC 20580

Re: [Company Name] - Request for Penalty Mitigation
File No.: [________________________________]

Dear [________________________________]:

On behalf of [Company Name] ("Company" or "[Short Name]"), we respectfully submit this letter requesting that the Federal Trade Commission consider the mitigating factors set forth below in determining an appropriate civil penalty, if any, in connection with the above-referenced matter.

We appreciate the Commission's willingness to engage in discussions regarding resolution of this matter and the Company's commitment to full cooperation and remediation.

PART II: BACKGROUND

Section A: Company Profile

[Company Name] is a [________________________________] founded in [____] and headquartered in [________________________________]. The Company employs approximately [____] people and has annual revenues of approximately $[________________].

Company Description:
[________________________________]
[________________________________]
[________________________________]

Products/Services at Issue:
[________________________________]
[________________________________]

Section B: Matter Summary

The Company understands that the Commission has concerns regarding [________________________________]. Without admitting liability, the Company acknowledges the following:

[________________________________]
[________________________________]
[________________________________]

PART III: STATUTORY PENALTY FACTORS

Section A: FTC Act Section 5(m)(1)(C) Factors

The FTC Act Section 5(m)(1)(C) directs the Commission to consider the following factors in determining civil penalty amounts. We respectfully submit that each factor weighs in favor of mitigation or elimination of any civil penalty:

Factor 1: Degree of Culpability

Statutory Factor: The degree of culpability of the violator.

Company's Position:

☐ No intentional wrongdoing: The conduct at issue was not intentional or willful. The Company believed in good faith that its practices were lawful.

☐ Good faith compliance efforts: The Company had compliance programs in place designed to prevent violations.

☐ Inadvertent violation: Any violation was the result of inadvertence, mistake, or isolated employee conduct not sanctioned by management.

☐ No prior violations: The Company has no prior history of violations of the FTC Act or the specific rule at issue.

Supporting Facts:
[________________________________]
[________________________________]
[________________________________]
[________________________________]

Factor 2: History of Prior Violations

Statutory Factor: Any history of prior violations.

Company's Position:

☐ No prior FTC enforcement actions: The Company has never been the subject of an FTC enforcement action.

☐ No prior violations of this rule: The Company has no history of violations of [specific rule/statute].

☐ Clean compliance record: The Company has maintained a clean compliance record for [____] years.

☐ Prior matter distinguished: [If applicable, explain how any prior matter is distinguishable]

Supporting Facts:
[________________________________]
[________________________________]

Factor 3: Ability to Pay

Statutory Factor: The ability of the violator to pay.

Company's Position:

☐ Financial hardship: The Company is experiencing financial hardship that would make payment of a significant penalty difficult.

☐ Small business: The Company is a small business with limited resources.

☐ Impact on operations: A substantial penalty would materially impair the Company's ability to continue operations, potentially harming employees and customers.

☐ Other financial obligations: The Company has significant financial obligations including [________________________________].

Financial Information Provided:
☐ Financial statements attached (Confidential Exhibit [____])
☐ Tax returns attached (Confidential Exhibit [____])
☐ Accountant certification attached (Confidential Exhibit [____])

Summary of Financial Position:

☐ Company requests that financial information be treated as confidential pursuant to 16 CFR § 4.10

Factor 4: Effect on Ability to Continue Business

Statutory Factor: The effect of the penalty on the violator's ability to continue in business.

Company's Position:

☐ Risk of business failure: A penalty of $[________________] or more would jeopardize the Company's continued viability.

☐ Employee impact: The Company employs [____] individuals who would be affected by business disruption or closure.

☐ Consumer impact: The Company provides [products/services] to [____] customers who rely on continued operations.

☐ Community impact: The Company contributes to the local economy through [________________________________].

Supporting Facts:
[________________________________]
[________________________________]

Factor 5: Injury to the Public

Statutory Factor: Such other matters as justice may require.

Company's Position on Consumer Injury:

☐ No actual consumer harm: No consumers suffered actual financial loss or injury.

☐ Limited consumer harm: Consumer harm was limited to [________________________________].

☐ Consumer redress provided: The Company has already provided refunds totaling $[________________] to affected consumers.

☐ No complaints: The Company received [no/minimal] consumer complaints about the conduct at issue.

Quantification of Consumer Impact:

PART IV: ADDITIONAL MITIGATING FACTORS

Section A: Cooperation with Investigation

☐ Full cooperation: The Company has fully cooperated with the Commission's investigation from the outset.

☐ Voluntary document production: The Company voluntarily produced [____] documents/records.

☐ Employee interviews: The Company made [____] employees available for interviews.

☐ No obstruction: The Company has not obstructed, delayed, or impeded the investigation in any way.

☐ Expedited responses: The Company responded to all CID requests within deadlines or agreed extensions.

Description of Cooperation:
[________________________________]
[________________________________]

Section B: Prompt Remediation

Immediate Corrective Actions Taken:

☐ Voluntary cessation: The Company voluntarily ceased the conduct at issue on [__/__/____], before any enforcement action.

☐ Consumer refunds: The Company has voluntarily provided $[________________] in consumer refunds.

☐ Policy changes: The Company has implemented new policies to prevent recurrence, including:
- [________________________________]
- [________________________________]
- [________________________________]

☐ Personnel changes: The Company has taken appropriate personnel action, including:
- [________________________________]

Section C: Enhanced Compliance Program

New or Enhanced Compliance Measures:

☐ Compliance officer appointed: [Name], [Title], appointed on [__/__/____]

☐ Enhanced training: New training programs implemented covering:
- [________________________________]
- [________________________________]

☐ Internal auditing: Regular compliance audits instituted [frequency]

☐ Third-party review: Engaged [________________________________] for independent compliance assessment

☐ Written policies: New written policies adopted, including:
- [________________________________]
- [________________________________]

Compliance Program Investment: $[________________]

Section D: Comparable Cases and Precedent

The Company respectfully submits that penalties in comparable cases support mitigation:

PART V: PENALTY RECOMMENDATION

Section A: Company's Position

Based on the foregoing mitigating factors, the Company respectfully requests that the Commission:

☐ Option 1: No Civil Penalty
Given the absence of consumer harm, the Company's good faith compliance efforts, prompt remediation, and full cooperation, we respectfully submit that no civil penalty is warranted.

☐ Option 2: Substantially Reduced Penalty
If the Commission determines that a civil penalty is appropriate, we respectfully request that the penalty be substantially reduced to $[________________], reflecting the mitigating factors outlined above.

☐ Option 3: Payment Plan
If the Commission imposes a civil penalty, the Company requests the ability to pay over [____] months given its financial circumstances.

☐ Option 4: Suspended Penalty
The Company requests that any penalty be suspended, contingent on compliance with [consent order provisions/specific conditions].

Section B: Proposed Resolution

The Company proposes the following resolution:

☐ Civil penalty of $[________________] (reduced from potential maximum)
☐ Payment over [____] months
☐ Suspended penalty provisions
☐ Consent order with specified provisions
☐ Voluntary compliance program
☐ Other: [________________________________]

PART VI: CONCLUSION

[Company Name] is committed to lawful business practices and maintaining the trust of consumers. The Company has taken this matter seriously, implemented comprehensive remedial measures, and is prepared to resolve this matter in a manner that serves the public interest.

We welcome the opportunity to discuss this matter further with Commission staff and to provide any additional information that would be helpful in reaching an appropriate resolution.

Respectfully submitted,

_________________________________
[Attorney Name]
[Firm Name]
[Address]
[Phone]
[Email]

Counsel for [Company Name]

PART VII: EXHIBITS

Confidential Exhibits (Request Confidential Treatment)

Non-Confidential Exhibits

PART VIII: CONFIDENTIALITY REQUEST

Pursuant to 16 CFR § 4.10, [Company Name] respectfully requests that the confidential exhibits identified above be accorded confidential treatment. Public disclosure of this information would cause substantial competitive harm to the Company and would deter voluntary cooperation with the Commission.

The specific grounds for confidentiality are:

☐ Trade secrets (16 CFR § 4.10(a)(2))
☐ Commercial or financial information (16 CFR § 4.10(a)(2))
☐ Personal financial information
☐ Other: [________________________________]

PART IX: INTERNAL PREPARATION CHECKLIST

Section A: Pre-Submission Review

☐ All factual assertions verified and documented
☐ Financial information audited/certified
☐ Prior case research completed
☐ Client authorized submission
☐ Confidentiality designations reviewed
☐ Legal review completed

Section B: Required Attachments

☐ Financial documentation (if claiming inability to pay)
☐ Evidence of remediation
☐ Compliance program documentation
☐ Consumer redress documentation
☐ Comparable case research
☐ Confidentiality request letter

Section C: Approvals

SOURCES AND REFERENCES

• 15 U.S.C. § 45(m) - Civil Penalty Provisions
• FTC Civil Penalty Adjustments 2025
• Federal Register - Civil Monetary Penalties 2026 Adjustment
• FTC Enforcement Actions
• 16 CFR § 4.10 - Confidentiality Requests

This template is designed for use by legal counsel representing clients in FTC enforcement matters. Penalty mitigation strategies should be developed based on the specific facts of each case and in consultation with attorneys experienced in FTC proceedings.