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Supreme Court Holds the FTC Act Gives No Authority to Bypass Administrative Cease-And-Desist Orders | K&L Gates LLP

To embed, copy and paste the code into your website or blog: In recent years, the Federal Trade Commission (FTC) has with increasing frequency sued in federal court under the purported authority of Section 13(b) of the Federal Trade Commission Act 1 (FTC Act) to obtain restitution of losses or disgorgement of profits resulting from “unfair methods of competition” or “unfair or deceptive acts or practices.” In doing so, the FTC has circumvented often time-consuming FTC administrative hearings that can produce nothing more than a cease-and-desist order. The FTC has followed this procedure in pursuit of both its consumer protection mission and its antitrust enforcement mission. On 22 April 2021, the U.S. Supreme Court in

FTC Act Gives No Authority to Bypass Cease-and-Desist Orders

Tuesday, May 11, 2021 In recent years, the Federal Trade Commission (FTC) has with increasing frequency sued in federal court under the purported authority of Section 13(b) of the Federal Trade Commission Act 1 (FTC Act) to obtain restitution of losses or disgorgement of profits resulting from “unfair methods of competition” or “unfair or deceptive acts or practices.” In doing so, the FTC has circumvented often time-consuming FTC administrative hearings that can produce nothing more than a cease-and-desist order. The FTC has followed this procedure in pursuit of both its consumer protection mission and its antitrust enforcement mission. On 22 April 2021, the U.S. Supreme Court in 

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