The U.S. Court of Appeals for the Seventh Circuit has struck a major blow to Federal Trade Commission (FTC) enforcement authority, holding that the agency cannot seek its preferred remedy of monetary restitution in federal court.
In recent years, the FTC has used Section 13(b) of the Federal Trade Commission Act (FTC Act)1 as its preferred enforcement mechanism, and it has done so to great effect. In 2017, for example, the FTC obtained $5.29 billion in restitution under this section. Civil penalties, which are authorized under a different part of the statute, totaled just $176 million that same year.
Sidley Austin LLP provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship. Readers should not act upon this information without seeking advice from professional advisers.
Attorney Advertising—Sidley Austin LLP, One South Dearborn, Chicago, IL 60603. +1 312 853 7000. Sidley and Sidley Austin refer to Sidley Austin LLP and affiliated partnerships, as explained at www.sidley.com/disclaimer.
© Sidley Austin LLP