New FTC Policy Would Shield Lawyers, Staff From Personal Liability

C. Ryan Barber reports:

The Federal Trade Commission on Wednesday adopted an indemnity policy that will shield lawyers and other staff from any personal liability for enforcement actions that draw a lawsuit and expose them to a monetary judgment.

The policy, adopted without public comment, will allow the agency to cover the cost of any adverse judgments against staff who are sued over actions taken on behalf of the regulatory agency. It comes as two FTC attorneys seek to fend off a lawsuit brought by LabMD Inc., the now-shuttered medical testing company that accused agency lawyers in 2015 of bringing a data privacy case based on “fictional” evidence. The two FTC lawyers are fighting in a U.S. appeals court to overturn a ruling that exposes them to liability.

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