Supreme Court Slams Brakes on FTC’s Fraud-Recovery Options
WASHINGTON (CN) — Overturning a nearly $1.3 billion injunction against a race car driver convicted of payday-lending fraud, the Supreme Court on Thursday took away what the Federal Trade Commission has called “one of its most important and effective enforcement tools.”
The FTC has relied on said tool to recoup billions of dollars over the past decade, but Justice Stephen Breyer wrote for the unanimous court this morning that the commission leaned improperly on a provision of federal law that does not authorize it to seek, or a federal court to order, restitution or disgorgement of profits.
Breyer noted that the commission has already asked Congress to expand its remedial authority under the Federal Trade Commission Act.
April 22, 2021
