Senate Confirms Bedoya to FTC

On Wednesday of this week by a vote of 51-50 with the Vice President breaking the tie, the U.S. Senate formally confirmed Alvaro Bedoya as a member of the Federal Trade Commission (FTC). Bedoya, who is the Founding Director of Georgetown University’s Center of Privacy and Technology as well as a Visiting Professor at the…

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GAO Franchising Study

A few weeks ago, we advised you of the Government Accountability Office (GAO) initiating discussion and study groups with the goal of looking more closely at franchising laws in general as well as the FTC Franchise Rule in particular. Toward that end, the GAO asked us to extend an invitation to our franchisee members to…

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GAO Creates Study Group on Franchising

At the request of Congress, the Government Accountability Office (GAO) is developing a study on issues involving franchising up to and including the FTC Franchise Rule and its enforcement. In that vein, the GAO has asked DDIFO to assist getting franchisee volunteers to participate. The GAO is an independent, nonpartisan agency that conducts research for…

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FTC Nominee Bedoya Advances

On the flip side of the nomination coin, also on Wednesday of this week, Senate Democrats voted 51-50 to advance the nomination of Alvaro Bedoya to serve as a Member of the Federal Trade Commission (FTC). The Bedoya nomination was tied up in a deadlocked (14-14) Senate Commerce Committee and needed to be advanced by…

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Court Rules Franchisees May Be Employees

Last week, the Massachusetts Supreme Judicial Court ruled that the independent contractor statute also applies to the franchisor-franchisee relationship and does not conflict with the FTC Franchise Rule 7-Eleven franchisees may in fact qualify as employees under the state ABC test. With its decision in Patel v 7-Eleven, Inc. the court in some ways “threaded…

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CFA Meets with FTC Nominee

Although his nomination is not yet a fait accompli, Federal Trade Commission nominee Alvaro Bedoya is wasting no time getting up to speed on the FTC Franchise Rule and all its implications. Aside from “studying up” on the rule as he described his efforts, he also this week met with the Coalition of Franchisee Associations…

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Congressional Hearing on Franchising

The US Senate Committee on Small Business & Entrepreneurship will host a hearing on March 16 at 2:30 PM specifically focused on the franchising industry and some of the problems that have beset franchise owners over the years. The hearing, entitled Small Business Franchising: An Overview of the Industry, SBA’s Role and Legislative Proposals, will…

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FTC Nominee Deadlocks Committee

In the highly charged and partisan US Congress, another nominee of President Biden has been deadlocked in committee, necessitating additional votes in the Senate to move the nomination forward. The Founding Director of the Center on Privacy and Technology at Georgetown University School of Law as well as a Visiting Professor there, Alvaro Bedoya was…

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FTC Stepping to the Plate

With a renewed focus on bad actors within the franchise industry, the US Federal Trade Commission (FTC) took a significant step this week when the Department of Justice (DOJ) filed suit against franchisor Burgerim alleging in a four-count lawsuit that the company violated Section 5 of the FTC with false and misleading representations to potential…

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FTC Adds Fraud Page to Website

When Senator Catherine Cortez Masto (D-NV) became aware of the lopsided playing field with which franchisees have had to contend, she set about seeking solutions. She subsequently produced an 87-page report on franchising, filed legislation to mandate more transparency and pushed for more diligent enforcement by the Federal Trade Commission (FTC). Well, we are now…

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