How a government inquiry begins
Many enforcement matters start with consumer complaints, a news story, or a sweep of an entire industry. The first contact is often a subpoena or a civil investigative demand asking for documents, data, and written answers. In New York, the Attorney General has broad investigative authority over businesses dealing with the public, and the FAIR Business Practices Act, effective in 2026, lets the office address unfair and abusive practices as well as deceptive ones. Federal agencies such as the FTC and the CFPB may be involved depending on the industry. The inquiry may end without any action, lead to a negotiated settlement, or become a lawsuit.
Responding without making it worse
A legal hold should go out immediately so that emails, chats, call recordings, and marketing files are preserved. The response deadline in the demand is often short, but scope and timing can frequently be negotiated, and that negotiation should happen early through counsel. Gather the versions of the advertising, terms of service, and checkout flows that were live during the relevant period, along with complaint logs and refund data. Avoid contacting complaining customers to resolve their individual issues in a way that looks like an effort to influence testimony. Employees contacted by investigators can be told that they may have counsel present, but no one should be discouraged from cooperating.
Planning the engagement with the regulator
Our opening step is to pin down what the demand is actually asking for, which practices seem to be the focus, and whether the business can fix any ongoing issue now. We discuss whether other regulators or private plaintiffs are likely to follow, since an enforcement action can prompt class actions. We also consider how much of the business's internal analysis should be done under privilege. Settlements with regulators often include changes to practices, restitution, and monitoring, so the terms deserve careful attention. Our aim is a response that is complete, accurate, and proportionate to what is being asked.
