What happens if a company with continuing obligations under the Commissions order is acquired by another company?
A. If a respondent to a Commission order is acquired in its entirety by a second company, that second company will likely become a “successor” to the respondent and, as such, obligated to comply with the Commission’s order. Other acquisitions of significant portions of a respondent’s business or a line of respondent’s business, which comprise less than the entirety of the respondent, will likely also create successor entities. The analysis is fact-specific and is not precisely the same analysis undertaken under corporate successorship law, but is conducted with an eye towards how the FTC’s consent order and remedy provisions will be effected.
Related Questions
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