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ARTICLE · 05 MAY 2021

Supreme Court Unanimously Holds FTC Cannot Seek Monetary Relief Under FTCA Section 13(b)

Since its enactment in 1973, Section 13(b) of the Federal Trade Commission Act has been relied upon by the Federal Trade Commission as an avenue to bypass administrative proceedings...

United StatesLitigation, Mediation & Arbitration

Since its enactment in 1973, Section 13(b) of the Federal Trade Commission Act has been relied upon by the Federal Trade Commission as an avenue to bypass administrative proceedings and directly seek and obtain monetary relief from federal courts for alleged violations of Section 5 of the FTC Act. The recent U.S. Supreme Court decision in AMG Capital Management v. FTC rejected this judicially implied right developed by the lower courts, limiting the scope of the FTC's enforcement abilities.

On April 22, 2021, the Supreme Court of the United States unanimously reversed a decision of the U.S. Court of Appeals for the Ninth Circuit and held that Section 13(b) of the Federal Trade Commission Act (the FTC Act) does not allow the Federal Trade Commission (FTC) to seek, or a federal court to award, equitable monetary relief such as restitution or disgorgement. The FTC had routinely relied on this provision for many years, with 49 complaints filed and 81 permanent

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