Analysis

FTC Banks On Lawmaker Action To Revive Restitution Power

Law360 (April 23, 2021, 10:32 PM EDT) -- After the U.S. Supreme Court's Thursday decision hobbling the Federal Trade Commission's power to force fraudsters to quickly cough up illicit gains, the FTC and lawmakers are gearing up to restore the agency's authority though new legislation.

The over century-old agency finds itself in a legal bind after the high court unanimously held that its authority to seek court-ordered preliminary injunctions under the Federal Trade Commission Act's Section 13(b) can be used only to halt scams, market manipulation and other ongoing bad behavior, but not to obtain court-ordered restitution or disgorgement of profits.

The ruling means the FTC can still try...

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