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FTC Guidelines: Non-Binding and New Evidentiary Rules

The SHIELD Act clarifies that Federal Trade Commission (FTC) guidelines do not create new rights or obligations for citizens or businesses. This means the FTC cannot penalize actions inconsistent with its guidelines unless those actions violate specific laws. At the same time, citizens and businesses can use these guidelines as evidence of compliance with the law during enforcement actions.
Key points
FTC guidelines are not binding: Citizens and businesses are not required to follow FTC guidelines if their actions do not violate specific laws.
Protection from penalties: The FTC cannot impose penalties or enter consent orders solely based on inconsistency with its guidelines; it must prove a violation of applicable law.
Guidelines as evidence: In a legal dispute, citizens and businesses can present FTC guidelines as evidence that they acted in compliance with the law.
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Additional Information
SHIELD Act
Print number: HR 2671
Sponsor: Rep. Armstrong, Kelly [R-ND-At Large]
Process start date: 2021-04-20