# FTC Whistleblower Act of 2021: What It Actually Does

This bill creates two major protections for people who report wrongdoing at companies the Federal Trade Commission oversees. First, it shields whistleblowers from getting fired, demoted, harassed, or punished in other ways for reporting violations. Second, it offers financial rewards to whistleblowers whose information leads to successful cases against companies.

The protection part works like this: if you work for a company and you report suspected illegal activity to your boss, the FTC, Congress, or anyone else you reasonably believe can address the problem, your employer can't retaliate against you. This covers not just reporting violations, but also refusing to participate in activities you believe are illegal. The bill even prevents companies from using confidentiality agreements or non-compete clauses to silence you. If your employer does retaliate, you can sue them in federal court and potentially recover three times your lost wages, plus compensation for emotional distress, legal fees, and expert witness costs. You'd also get your job back with the same seniority you would have had.

The rewards part incentivizes people to come forward with original information. If your tip to the FTC leads to a case where the company pays over $1 million in penalties or settlements, you could receive between 10 and 30 percent of what the government collects. You don't need a contract with the FTC to qualify, and you can have a lawyer help you. However, you won't get a reward if you were convicted of a crime related to the violation, if you actually caused the violation yourself, or if you knowingly provided false information.

This law essentially makes it safer and more rewarding to blow the whistle on corporate misconduct involving consumer protection, privacy, fraud, or other issues the FTC handles.

FTC Whistleblower Act of 2021

Schakowsky, Janice D.

FTC Whistleblower Act of 2021 This bill provides protections and incentives for whistleblowers who disclose information about, or refuse to participate in, an activity they reasonably believe is a potential violation of any law, rule, or regulation enforced by the Federal Trade Commission. Specifically, it prohibits retaliation against whistleblowers and provides monetary incentives for information that leads to administrative or judicial actions that result in sanctions exceeding $1 million.