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Supreme Court finds FTC lacks authority to seek monetary relief under Section 13(b) | Hogan Lovells


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On 22 April, the Supreme Court dealt a striking blow to the Federal Trade Commission’s (FTC) longstanding reliance on Section 13(b) of the Federal Trade Commission Act (FTC Act) as a basis for obtaining monetary relief for consumers. In a unanimous ruling in AMG Capital Management, LLC v. Federal Trade Commission, the Court held that Section 13(b) does not authorize the FTC to recover monetary remedies such as restitution and disgorgement of profits. Acting FTC Chairwoman Rebecca Kelly Slaughter criticized the decision, noting that Section 13(b) cases have resulted in “$11.2 billion in refunds to consumers during just the past five years.” The FTC has asked Congress to amend Section 13(b) authority in light of the Court’s opinion. In the absence of Congressional intervention, the FTC is likely to increase reliance on a little-used and more burdensome mechanism under Section 19 of the FTC Act to obtain monetar ....

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