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U.S. Supreme Court Significantly Restricts FTC Civil Enforcement Powers in AMG Capital Decision | Goodwin


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The U.S. Supreme Court dealt a blow to the U.S. Federal Trade Commission (“FTC”) in a recent decision that eliminated the agency’s ability to seek monetary remedies in enforcement actions in federal court. This new ruling has significant implications for the FTC’s enforcement efforts, particularly in pharmaceutical antitrust cases involving “pay for delay” and similar practices. Following this sudden halt to an enforcement tool used for decades, Congress is considering legislation explicitly granting the FTC power to obtain equitable monetary remedies in federal court. ....

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The Supreme Court Prohibits the FTC From Seeking Monetary Relief in Federal Court Under Section 13(b) of the FTCA | Kramer Levin Naftalis & Frankel LLP


[co-author: Daniela Manzi]
On April 22, 2021, the Supreme Court issued a unanimous decision prohibiting the Federal Trade Commission (FTC) from using its preferred tool for regulating marketplace misconduct. The Court held that Section 13(b) of the Federal Trade Commission Act (FTCA), which allows the FTC to seek injunctive relief in federal court, does not extend to monetary relief in the form of restitution or disgorgement.
Sections 5 and 19 of the FTCA have long been used by the FTC to seek monetary damages through administrative proceedings. Section 13(b) gives the FTC the power to seek injunctive relief in federal court to halt deceptive practices that harm consumers. Since the late 1990s, the FTC has increasingly used Section 13(b) to pursue monetary awards against defendants. ....

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