FEMA Trailer Resellers May Face Criminal Probe: FTC

Law360, New York (August 9, 2010, 1:43 PM EDT) -- The Federal Trade Commission says resellers of formaldehyde-contaminated trailers previously owned by the Federal Emergency Management Agency may face criminal penalties for concealing potential health risks from purchasers.

While the agency could not levy civil penalties for potential FTC Act violations associated with the resale of the toxic trailers, it could pursue a “variety of remedies” that include equitable monetary relied, cease and desist orders, bans and disclosure remedies, and possibly even referral to the U.S. Department of Justice for criminal charges, according to a letter...
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