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Ruling in payday loan case, Supreme Court curbs ability of FTC to obtain restitution

Ruling in payday loan case, Supreme Court curbs ability of FTC to obtain restitution   Image from shutterstock.com. The Federal Trade Commission will have to follow a more cumbersome procedure to obtain restitution or disgorgement as a result of a unanimous U.S. Supreme Court ruling Thursday. The high court ruled that the FTC can’t use Section 13(b) of the Federal Trade Commission Act which authorizes the agency to obtain permanent injunctions to seek restitution or disgorgement in cases filed directly in federal court. A different provision of the law allows the FTC to go to federal court to seek a refund for consumers, but the commission must first obtain a cease-and-desist order in administrative proceedings.

U S lawmaker introduces bill to restore FTC ability to get money back from scammers

U.S. lawmaker introduces bill to restore FTC ability to get money back from scammers 04/23/2021 18:48 WASHINGTON (Reuters) - Representative Tony Cardenas, along with other Democrats, has introduced a bill that would restore the Federal Trade Commission s ability to force scam artists and deceptive companies to return ill-gotten gains. The U.S. Supreme Court on Thursday made it more difficult for the FTC to win back lost funds, ruling 9-0 that the Federal Trade Commission Act allows it to ask a judge for injunctions to stop bad behavior but not to claw back money. Cardenas bill, which was introduced on Tuesday, would amend the FTC Act to confirm the agency s authority to seek permanent injunctions and other equitable relief, according to the bill s text.

The Supreme Court - April 22, 2021 | Dorsey & Whitney LLP

To embed, copy and paste the code into your website or blog: AMG Capital Management, LLC v. FTC, No. 19-508: Petitioner Scott Tucker controlled a number of companies offering short-term payday loans. The Federal Trade Commission (“FTC”) brought suit, claiming that Tucker and his companies were violating the Federal Trade Commission Act by engaging in “unfair or deceptive acts or practices” – namely, that the companies’ explanation of its loan terms to customers were misleading compared to the fine print the companies enforced. The FTC sought a permanent injunction, as well as restitution and disgorgement, relying upon §13(b) of the Act, which authorizes the FTC to obtain a “permanent injunction” against “any person, partnership, or corporation” that “is violating or is about to violate, any provision of law” that the FTC enforces. The District Court found for the FTC, granting both an injunction and ordering $1.27 billion in restitution and disgorgement. Th

U S Supreme Court curbs FTC s power to recoup ill-gotten gains - Netscape Money & Business

U S Supreme Court curbs FTC s power to recoup ill-gotten gains - Netscape Money & Business
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