U.S. Supreme Court to weigh FTC authority to seek ill-gotten gains

Source: Reuters

WASHINGTON (Reuters) - The U.S. Supreme Court agreed on Thursday to decide whether the Federal Trade Commission can continue to require scam artists and firms that engaged in deceptive business practices to return money improperly obtained from consumers.

The justices will hear the FTC’s appeal of a lower court’s 2019 ruling that the agency could demand that alleged scam artists stop their behavior using a preliminary injunction but could not clawback any ill-gotten gains in a case involving a company called Credit Bureau Center LLC.

The court also took up a companion case involving a company called AMG Capital Management that appealed a ruling by the San Francisco-based 9th U.S. Circuit Court of Appeals that endorsed the FTC’s authority to recoup ill-gotten gains.

In appealing a ruling by the Chicago-based 7th U.S. Circuit Court of Appeals in the Credit Bureau Center case, the FTC in court papers described the challenge to its practice of demanding return of ill-gotten gains as potentially “eliminating one of its most important and effective enforcement tools.”

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U.S. LEGAL NEWS JULY 9, 2020 / 2:24 PM / UPDATED 2 HOURS AGO
Diane Bartz
3 MIN READ


Read more: https://www.reuters.com/article/us-usa-court-ftc/u-s-supreme-court-to-weigh-ftc-authority-to-seek-ill-gotten-gains-idUSKBN24A2XY