Supreme Court Rules FTC Cannot Obtain Monetary Relief Under Section 13(b)

On April 22, 2021, in a unanimous decision, the U.S. Supreme Court in AMG Capital Management v. FTC held that the authorization to seek a "permanent injunction" under Section 13(b) of the Federal Trade Commission Act does not permit the FTC to obtain equitable monetary relief such as restitution and disgorgement.

In the underlying dispute, the FTC sued an individual and several entities for engaging in "unfair or deceptive acts or practices" by misleading consumers in connection with providing short-term payday loans online. In addition to seeking a permanent injunction, the FTC also sought restitution and disgorgement. The district court issued a permanent injunction and granted the FTC's requested monetary relief in the amount of nearly $1.27 billion. The U.S. Court of Appeals for the Ninth Circuit affirmed, relying on its precedent holding that Section 13(b) "empowers district courts to grant any ancillary relief necessary to accomplish complete justice,