August / September 1999

Franchising: Federal Trade Commission Act may not apply extraterritorially

01 August 1999

This decision has ominous implications for the FTC and its jurisdiction to enforce the entire FTC Act, not just the FTC Franchising Rule. For this reason, and because of the Court’s acknowledgement that its Nieman decision conflicts with an earlier 7th Circuit decision (which had authorised extraterritorial exercise of the FTC’s jurisdiction), we may not have heard the last of this case or the issue of the FTC Act’s extraterritorial reach.