front-page » Scotus Signals Curtains For FTC’s “Restorative” Awards

Scotus Signals Curtains For FTC’s “Restorative” Awards


February 9, 2021

Section 13 of the Federal Trade Commission Act empowers the FTC to seek an “injunction” against a business that “is violating, or is about to violate” any provision of law the FTC enforces. The FTC routinely uses that authority to seek what it characterizes as “restorative” monetary awards. Old Supreme Court cases and many appeals court decisions support the theory that the statutory authority to obtain an “injunction” includes all traditional forms of equitable relief. In AMG Capital Management v. Federal Trade Commission, a case argued before the Supreme Court in mid-January, the FTC obtained an “injunction” ordering the defendants to pay more than a billion dollars based on a finding of deception in short-term small-dollar lending programs. Based on the Justices’ reaction, there is no support for the awards. One defense the FTC raises is that they are rare, and only for exceptional cases, but Justice Breyer pointed out that 100 cases were in court under that protocol right now.

Read full article at:

Share this post: