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Supreme Court Finds Section 13(b) Does Not Allow for Monetary Remedies

This morning, the Supreme Court released its long-awaited Opinion in AMG Capital Management v. FTC. Judge Breyer issued the decision for a unanimous Court. As we had predicted following oral arguments, the Supreme Court found...more

With a Supreme Court Decision Pending, Will Congress Intervene to Clarify the FTC’s Enforcement Authorities Under 13(b)?

As we inch closer to a Supreme Court decision in AMG Capital Management, LLC v. Federal Trade Commission, proponents of a 13(b) legislative fix are moving with a greater sense of urgency. In a Senate Commerce Committee...more

House Democrats Primed to Introduce 13(b) Legislative Fix

On Thursday afternoon, the future of the Federal Trade Commission’s enforcement authority took center stage during a House Energy and Commerce Committee hearing entitled, “Safeguarding American Consumers: Fighting Fraud and...more

Section 13(b) Gets its Day in Court: “It seems the problem you have is the text” – Justice Kavanaugh

This morning, the Supreme Court heard its long-anticipated arguments in AMG Capital Management, LLC v. Federal Trade Commission. As we have previously explained, in AMG, the FTC’s use of Section 13(b) of the FTC Act to obtain...more

What If . . . Section 19 of the FTC Act Becomes the FTC’s Best Path to Monetary Relief: Revisiting Figgie International

With one eye on the U.S. Supreme Court, which is being asked to confirm that the FTC has authority to seek monetary relief under Section 13(b) in AMG Capital Management, LLC v. Federal Trade Commission, and the other eye on...more

FTC Announces “Operation Income Illusion” to Crack Down on Deceptive Income Claims

The FTC today announced four new enforcement actions and one new settlement alleging deceptive income claims in violation of the FTC Act. The FTC noted that these actions are part of a broader initiative branded as...more

Amici Line Up Behind the FTC: Warn of Doom if the Supreme Court Rules Against the Commission in AMG Capital Management

As the parties prepare for oral argument before the Supreme Court on January 13 in AMG Capital Management LLC et al. v. FTC, case number 19-508, amicus briefs in support of the Commission’s position have been filed this week,...more

The FTC Reargues its 13(b) Case, While Congress Appears Set to Enhance the SEC’s Ability to Seek Disgorgement, Suggesting A...

Earlier this week, the Federal Trade Commission re-stated its position to the Supreme Court, arguing that there is no “clear legislative command” to restrict the traditional powers of equity. In other words, courts of equity...more

Supreme Court Sets Oral Argument in AMG Capital Management

This morning, the Supreme Court released its calendar for its January 2021 oral arguments. AMG Capital Management, LLC v. FTC is on the docket. Oral argument in AMG has been scheduled for January 13, 2020....more

The “Un-Sprung Bear Trap”: The Resurrection of the FTC’s Penalty Offense Authority As One Possible Solution to the 13(b) Problem

Late last week (Oct. 29), FTC Commissioner Rohit Chopra (D) and his Attorney Advisor Samuel Levine released a paper entitled “The Case for Resurrecting the FTC Act’s Penalty Offense Authority.” In it, Commissioner Chopra and...more

FTC Commissioners Appeal to Hill on Section 13(b)

Last week, all five FTC Commissioners – Chairman Joseph Simons (R), and Commissioners Christine Wilson (R), Noah Phillips (R), Rebecca Slaughter (D), and Rohit Chopra (D) – sent a letter to the Chairs and Ranking Minority...more

Section 13(b) at the Start of the Supreme Court’s October Term: Where Things Stand, Where They’re Likely to End, And A Proposed...

The Supreme Court’s new term began last Monday. This new term has taken on heightened significance with President Trump’s nomination of current Seventh Circuit Judge Amy Coney Barrett to the High Court. President Trump and...more

Senate Commerce Committee Republicans Include 13(b) Fix in New Privacy Legislation

Late last week, Senate Commerce Committee Chairman Roger Wicker (R-MS), along with Senators John Thune (R-SD), Deb Fischer (R-NE), and Marsha Blackburn (R-TN), introduced S. 4626, the Setting an American Framework to Ensure...more

Illinois Court Dismisses Neora’s Declaratory Judgment Suit against FTC on Jurisdictional Grounds

Turns out the best defense may not be a good offense, at least when litigating against the FTC. The Northern District of Illinois yesterday rejected an attempt by multi-level marketer Neora, LLC (formerly Nerium) to obtain a...more

California Federal Court Stays Trial Pending Supreme Court Ruling on Reach of Section 13(b) of FTC Act

On August 20, a Northern District of California court stayed the trial of an action the FTC brought against Lending Club in 2018 pending a Supreme Court ruling on the FTC’s authority to seek monetary restitution under Section...more

The Boundaries of the FTC’s Section 13(b) Authority: 24 States Weigh In

On January 30th, 24 State Attorneys General*, led by Kwame Raoul (D) of Illinois, submitted an amici curiae brief in support of the Federal Trade Commission’s position in FTC v. Credit Bureau Center LLC....more

Section 13(b) at the New Year: Where Things Stand in the Fight Over The FTC’s Enforcement Authority

The year ended with a flurry of activity related to the FTC’s ability to obtain permanent injunctions and restitution under Section 13(b) of the FTC Act. As we head into 2020, a level-set is in order....more

Direct Seller Stands Its Ground: Neora Seeks Declaratory Judgment Against the FTC, Challenging the Agency’s Section 13(b)...

The continuing questions over the extent of the FTC’s enforcement authority to obtain monetary relief under Section 13(b) did not stop the Commission from filing a lawsuit on November 1 against multi-level marketer Neora, LLC...more

“Untangling the Knot” or “A Grant of Immunity to Brazen Scammers”? The 7th Circuit Rejects Restitution as a Remedy under Section...

Last week, the U.S. Court of Appeals for the Seventh Circuit cannonballed directly into the roiling waters of debate over the Federal Trade Commission’s enforcement powers, when it determined in a closely-watched appeal that...more

FTC Requests Congressional Clarification of the Its Ability to Obtain Monetary Relief Under Section 13(b)

Yesterday, Commissioner Christine Wilson testified before the U.S. House Committee on Energy and Commerce Subcommittee on Consumer Protection and Commerce, and asked Congress to clarify the extent of the FTC’s authority to...more

The Battle Over the Scope of FTC Judicial Enforcement Authority: Seventh Circuit Hears Oral Argument Regarding the Reach of...

Last month, we wrote about the decision of the U.S. Court of Appeals for the Third Circuit in FTC v. Shire Viropharma Inc., holding that the FTC may only bring a case under Section 13(b) of the FTC Act when the FTC can...more

FTC Can’t Challenge Prior Acts in Federal Court Says Third Circut

In a decision that will limit the Federal Trade Commission’s (FTC) ability in both consumer protection and antitrust matters to bring certain claims in federal court, the Third Circuit Court of Appeals held in FTC v. Shire...more

FTC Releases Business Guidance on Multi-Level Marketing, Memorializing Principles from Prior Settlements on Hot Button Issues

The FTC released today Business Guidance Concerning Multi-Level Marketing, which offers answers to frequently asked questions to assist multi-level marketers in evaluating their business practices for compliance with the FTC...more

Dietary Supplement Advertising

STATE REGULATION - State AGs and the New Administration - By John Villafranco and Katie Bond - As we discussed in recent interviews with Nutritional Outlook and Natural Products Insider, FTC enforcement against...more

FTC Announces Changes at the Helm of the Bureau of Consumer Protection; Thomas Pahl to Take Over as Acting Bureau Director...

Acting Chairman of the Federal Trade Commission Maureen Ohlhausen announced today that Thomas Pahl – a current partner at Arnall Golden Gregory with significant experience at both the FTC and the Consumer Financial Protection...more

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