FTC v. Qualcomm: FTC Oversteps its Section 13(b) Authority . . . Again

On August 30, 2019, Cause of Action Institute (CoA) filed an amicus brief in the Ninth Circuit in support of Qualcomm in FTC v. Qualcomm, Inc., No. 19-16122.  This unprecedented, highly controversial case of international importance represents FTC’s latest ultra vires attempt to expand its powers.  It does so here by seeking to transmogrify an alleged breach of contract into an antitrust violation.  A former FTC Commissioner, a current FTC Commissioner, the U.S. Department of Justice, numerous other federal agencies, a former Chief Judge of the Federal Circuit, leading antitrust scholars, and others all publicly oppose FTC’s wayward lawsuit against Qualcomm. Learn More

FEC IG Report Leaves Weintraub Unchecked

In February 2017, Cause of Action Institute asked the Inspector General (“IG”) for the Federal Election Commission (“FEC”) to look into statements made by Commissioner Ellen Weintraub.  We recently obtained a copy of the IG’s report on the issue, clearing Commissioner Weintraub of wrongdoing. Learn More

Investigation Update: The VA continues to subject certain FOIA requests to “sensitive review,” but the agency is keeping records about the practice secret

Over the past year, Cause of Action Institute (“CoA Institute”) has been investigating the Department of Veterans Affairs for its continued politicization (here, here, and here) of the Freedom of Information Act (“FOIA”).  That politicization takes the form of “sensitive review,” which refers generally to the practice of giving certain FOIA requests extra scrutiny.  Sensitive review usually entails an additional layer of review or “consultation” with interested parties before potentially embarrassing or politically sensitive records are released to the public.  At its best, it almost always causes delay.  At its worst, it leads to intentionally inadequate searches, politicized document review, improper redaction, and incomplete disclosure. Learn More

The EPA bypassed public comment on its new FOIA regulations, which raises some important legal questions

The Environmental Protection Agency (“EPA”) has long struggled with the politicization and abuse of its Freedom of Information Act (“FOIA”) processes.  Indeed, as Cause of Action Institute (“CoA Institute”) has repeatedly argued, the agency has a “terrible track record for anti-transparency behavior”—from the weaponization of fee waivers and the use of undisclosed “alias” e-mail accounts, to the failure to preserve text messages and the creation of special “awareness review” procedures for politically sensitive FOIA requests.  Yet the EPA’s rather poor reputation plunged even further in late June 2019, when the agency published an unexpected direct final rule implementing various changes to its FOIA regulations. Learn More

The D-Link Systems’ Consent Order Explained

On Tuesday, August 6, 2019, the U.S. District Court for the Northern District of California entered a consent order between the Federal Trade Commission (“FTC”) and D-Link Systems, Inc., a U.S. company that is a global leader in connectivity for home, small business, mid- to large-sized enterprise environments, and service providers, resolving an FTC lawsuit alleging that D-Link Systems’ security practices violated Section 5 of the FTC Act.  The D-Link Systems order marks the close of the first ever litigated FTC action over the application of Section 5 to the security practices used for Internet of Things (“IoT”) devices.  This result is good for D-Link Systems, and good for the FTC.

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EXIM Supporter Investigated for Potentially Defrauding the Bank

Cause of Action Institute recently received documents indicating that a repeat customer and vocal supporter of the Export-Import Bank of the United States (“EXIM”) allegedly defrauded the bank. EXIM, which is tasked with assisting the financing of U.S. exports, has gained a reputation for favoring certain companies over others, which is exemplified by its nickname “the Bank of Boeing” for its preferential treatment of the airline. Recent reports from the Government Accountability Office and the EXIM Inspector General (”IG”) have also shown a disconcerting susceptibility to fraud.

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Supreme Court Adopts the Position Urged by Cause of Action for When Fabrication-of-Evidence Lawsuits Must Be Filed

The window of time to file any lawsuit is limited. The period usually begins to run when the plaintiff first knows that something went wrong. In special circumstances, however, fair policy requires that the window to sue opens, or as lawyers say, the claim “accrues,” at a different time. Today, in McDonough v. Smith, a case in which Cause of Action Institute filed two briefs, the Supreme Court identified one of those special situations.

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