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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

What Happens to the FTC Under a Biden-Harris Administration?

Now that Joe Biden has been declared the winner of this year’s presidential election, many practitioners are beginning to turn their focus to how a Biden Administration will reshape federal agencies. This post takes a look at...more

Supreme Court Vacates its Prior Grant of the FTC’s Petition for Certiorari in FTC v. Credit Bureau Center, LLC: What Does it Mean...

This morning, in a brief line order, the Supreme Court vacated its prior grant of the Federal Trade Commission’s petition for certiorari in Federal Trade Commission v. Credit Bureau Center, LLC (“Credit Bureau”). Justice...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

Supreme Court Issues Liu Decision on Disgorgement with Important Implications for Section 13(b)

The Supreme Court issued an 8 to 1 decision today in the highly-anticipated case of Liu v. SEC. The opinion, authored by Justice Sotomayor (with Justice Thomas dissenting), holds that “[a] disgorgement award that does not...more

Anheuser-Busch Wins Big Battle in Corn Syrup Wars

During last year’s Super Bowl, Anheuser-Busch ran a commercial in which a large barrel of corn syrup is delivered to the Bud Light castle. Because Bud Light doesn’t use corn syrup, the Bud Light King and a rag-tag group of...more

NAD Releases Fast-Track SWIFT Process

Last week, NAD launched a new, expedited process that will allow companies to challenge advertising claims made by competitors and get a decision within weeks as opposed to months. The process, “Single Well-defined Issue...more

4/6/2020  /  Advertising , NAD , NARB

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

FDA Tightening Oversight of Dietary Supplement Industry

This morning, the FDA announced its intention to engage in greater oversight of the dietary supplement industry. The announcement also conveyed that the Agency had sent 12 warning letters and five advisory letters to...more

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