FTC Whistleblower Reward

Learn What Prospective FTC Whistleblowers Need to Know About Seeking Financial Rewards

Like other federal authorities, the U.S. Federal Trade Commission (FTC) relies heavily on whistleblowers to come forward. The FTC relies on whistleblowers to expose unfair business practices, consumer protection violations and antitrust violations—in addition to all forms of fraud, waste, and abuse (FWA).

The Federal Trade Commission (FTC) Does Not Have a Whistleblower Reward Program

However, unlike many other federal agencies, the FTC does not have a whistleblower reward program. While the FTC is able to offer confidentiality and anti-retaliation protections, it is not able to offer monetary rewards. An effort to establish an FTC whistleblower reward program in 2024 stalled; and, as a result, whistleblowers who report violations directly to the FTC are not eligible to receive rewards regardless of how much they help the FTC recover in monetary sanctions and other penalties.

Prospective FTC Whistleblowers May Be Able to Obtain Financial Rewards Through Other Means

However, while prospective whistleblowers may not be able to secure monetary rewards from the FTC, they may be able to secure monetary rewards through other means. As noted above, many other federal agencies have whistleblower reward programs, and the federal False Claims Act includes provisions for whistleblower rewards as well.

Federal Agencies That Offer Whistleblower Awards

While efforts to establish an FTC whistleblower reward program have failed to date, it has become more common for federal agencies to establish whistleblower reward programs in recent years. Currently, the following federal agencies offer whistleblower awards in cases that may also be of interest to the FTC. These agencies offer protections similar to those offered by the FTC as well:  

• U.S. Commodity Futures Trading Commission (CFTC) – The CFTC accepts whistleblower complaints involving fraud and other unfair business practices in cases involving the commodities, derivatives, and futures markets. Whistleblowers can report violations by financial institutions, corporations, and other entities in the U.S. and abroad.
• U.S. Department of Justice (DOJ) – The DOJ has two whistleblower reward programs. The Criminal Division’s Corporate Whistleblower Reward Program accepts cases involving fraud, corruption, and other unlawful corporate practices, while the Antitrust Division’s Whistleblower Reward Program accepts cases involving anticompetitive practices and other violations of the federal antitrust laws.
• U.S. Securities and Exchange Commission (SEC) – The SEC issues whistleblower rewards to individuals who provide original information about fraudulent practices impacting investors. It incentivizes whistleblowers to report violations ranging from insider trading to conflicts of interest and other forms of wrongdoing in the brokerage industry.
• U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) – FinCEN’s enforcement efforts focus primarily on preserving the integrity of the U.S. financial system. It pays whistleblower rewards in cases involving fraudulent financial institution practices and other corporate violations of federal law.

Under each of these agencies’ whistleblower programs, rewards are available when whistleblowers provide original information that leads to successful enforcement proceedings. These enforcement proceedings can be administrative, civil, or criminal in nature; and, as discussed in greater detail below, whistleblower rewards are generally calculated as a percentage of the monetary sanctions recovered.

Whistleblower Rewards Under the False Claims Act

Along with filing tips with these agencies, prospective FTC whistleblowers may also be able to come forward and secure financial rewards under the False Claims Act.

The False Claims Act prohibits federal contractors and other recipients of federal funds from making “false or fraudulent claims” to the federal government. This includes recipients of federal funds under FTC contracts, grants, and programs. It is one of several federal whistleblower laws that include provisions for financial rewards when whistleblowers’ complaints lead to successful resolutions. Under the False Claims Act:

• Blowing the whistle involves filing a qui tam lawsuit in federal court. The False Claims Act’s qui tam provisions allow whistleblowers to file lawsuits on the government’s behalf. Its qui tam provisions also protect whistleblowers who come forward with valid evidence of suspected false or fraudulent claims.
• When the government receives a valid qui tam complaint, it is required to investigate. Upon receiving a valid qui tam complaint, the DOJ is required to conduct an investigation. The whistleblower’s involvement in the DOJ’s investigation can have a major impact on the amount of the whistleblower’s reward (if the case is successful).
• After investigating, the government must decide whether to intervene. “Intervention” is a key step in the qui tam process. If the government intervenes, it will take over the case and pursue monetary sanctions directly. If the government declines to intervene, the whistleblower will need to make an informed decision about whether to continue pursuing the case in court.
• If a qui tam lawsuit is successful, the whistleblower is entitled to a monetary reward. When the government recovers monetary sanctions through a qui tam lawsuit, the whistleblower is entitled to a percentage of the funds the government recovers. Many factors can play a role in determining the specific percentage of a False Claims Act whistleblower award.

When you contact us, our lawyers can determine whether you are eligible to file a qui tam lawsuit under the False Claims Act or file a complaint under one of the whistleblower reward programs discussed above. Our lawyers have extensive experience filing whistleblower reports in both types of cases. Once you evaluate your options and decide what to do, our lawyers can then begin the process of working with the appropriate federal authorities on your behalf.

Calculating Whistleblower Award Payouts Following Successful Enforcement Actions

As a general rule, whistleblower awards are calculated as a percentage of the monetary sanctions collected following successful enforcement actions. However, the specific parameters for calculating awards vary between agencies and under the False Claims Act.

Broadly, whistleblower rewards typically range from 10% to 30% of the government’s recovery. While some agencies require a recovery of $1 million or more, this threshold will be easily surpassed in most cases. In all cases, whistleblower rewards have the potential to be substantial; and, when desired, we work with the relevant federal authorities on behalf of our clients to help maximize their reward eligibility.

FAQs: Whistleblower Rewards in Consumer Protection and Antitrust Cases

Questions About Seeking an FTC Whistleblower Reward? Schedule a Free and Confidential Consultation Today

Our lawyers represent current employees, former employees, and other individuals in all federal whistleblower matters. If you have questions about seeking a reward for reporting a violation that falls within the FTC’s enforcement jurisdiction, we invite you to get in touch. To speak with one of our senior lawyers in strict confidence as soon as possible, call 888-680-1745 or tell us how we can reach you online now.