FTC Files Amicus Brief in Patel, v. 7-Eleven, Inc.

Argues Franchise Rule cannot be used to avoid state-imposed labor protections

The Federal Trade Commission filed an amicus brief with the Supreme Judicial Court for the Commonwealth of Massachusetts advising the court that the FTC’s Franchise Rule does not address and cannot be used to determine whether franchisees governed by the FTC rule are employees under state law. The Commission took no position on how the state law applies. The case is Patel, et al. v. 7-Eleven, Inc.

The FTC’s brief argues that the Franchise Rule requires franchisors to make specified disclosures to franchisees but does not address whether a franchisee is an employee or an independent contractor under Massachusetts law and does not preempt state law. 7-Eleven therefore may not rely on the Rule to govern its status as an employer under state law.

The Commission voted 3-1 to file the amicus brief with Commissioner Noah J. Phillips dissenting.

The Federal Trade Commission works to promote competition, stop deceptive and unfair business practices and scams, and educate consumers. Report fraud, scams, or bad business practices at ReportFraud.ftc.gov. Get consumer advice at consumer.ftc.gov. Also, follow the FTC on social media, subscribe to press releases, and read the FTC’s blogs.


Media Contact:
Office of Public Affairs

error: Content unreachable !!