The U.S. Supreme Court’s unanimous decision on April 22, 2021, in
AMG Capital Management LLC v. Federal Trade Commission curtails the authority of the Federal Trade Commission (FTC) to seek equitable monetary relief in federal court under Section 13(b) of the FTC Act (the Act). While Congress may step in to restore its authority, the FTC in the interim must rely on its unwieldy administrative process to provide monetary relief or may turn to state attorneys general (AGs) or other federal agencies to pick up the baton.
Background
AMG petitioned the Court contending the FTC did not have authority to seek equitable monetary relief after the Ninth Circuit affirmed the district court’s order that AMG pay $1.27 billion for failing to disclose the terms of payday loans. Section 13(b) authorizes the FTC to seek injunctive relief in federal court, but it does not contain an express provision for equitable monetary relief. Until
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The US Supreme Court ruled last week that the Federal Trade Commission doesn’t have the authority to seek equitable monetary relief in federal court under Section 13(b) of the FTC Act in
The text of Section 13(b) expressly allows the Commission to seek injunctive relief (temporary restraining orders or preliminary injunctions in aid of administrative proceedings, as well as permanent injunctions in “proper cases”), but is silent on whether the agency can also seek equitable monetary relief. Nonetheless, courts for years have ordered consumer redress, including disgorgement and restitution under Section 13(b) in response to agency requests.
In a 9-0 decision issued on April 22, 2021, the United States Supreme Court held that the Federal Trade Commission’s (“FTC”) authority to seek equitable monetary remedies (restitution.
Supreme Court Rules That the FTC Cannot Use Section 13(b) to Secure Monetary Relief | Faegre Drinker Biddle & Reath LLP jdsupra.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jdsupra.com Daily Mail and Mail on Sunday newspapers.
U S Supreme Court Limits the FTC s Authority to Seek Monetary Relief in Deceptive Practices Enforcement Cases | Insights gtlaw.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from gtlaw.com Daily Mail and Mail on Sunday newspapers.