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Parent Disclosure: Why Is Everybody Always Picking on Me?
If there's one group that may be unhappy about the Federal Trade Commission (FTC) Staff Report's proposed revisions to the FTC Franchise Rule, it's got to be the parents of franchisors (or maybe franchisors who have parents). The FTC really zapped it to parents, increasing the franchisor's disclosure burden with respect to its parent.
The current UFOC Guidelines do not define “parent,” although the Item 21 Instructions say that a company owning 80% or more of a franchisor may be required to include its financial statements. The FTC Staff Report recommends adding a definition of parent: “an entity that controls the franchisor directly, or indirectly through one or more subsidiaries.” (Proposed Section 436.2(m).) This definition is broad and at first blush seems appropriate, until we understand the impact the definition will have on franchisors and their parents. This definition affects Items 1, 3, 4 and 21. While the FTC Franchise Rule currently requires disclosure of certain information about the parent, most franchisors comply with the UFOC Guidelines, which do not directly reference the parent. Let's review the impact of the FTC Staff Report.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.