Plain-English summary
Rules Section 13(b) allows FTC to obtain equitable monetary relief in district court
The Supreme Court decided in Federal Trade Commission v. Credit Bureau Center, LLC that the FTC can use Section 13(b) of the FTC Act to seek monetary equitable relief (such as restitution or disgorgement) in federal district court. The decision affirms the Seventh Circuit and joins several other circuits that had read Section 13(b) to permit such relief.
Why this matters
The ruling preserves a powerful tool the FTC has long used to return money to harmed consumers and to strip ill-gotten gains from wrongdoers without needing to go through longer administrative proceedings or separate statutory remedies. It affects how quickly and effectively the FTC can respond to consumer fraud and recover money for victims.
Who may feel it
- Consumers harmed by fraud or unfair business practices
- Businesses and individuals subject to FTC enforcement actions
- Federal district courts handling FTC suits
- State attorneys general and consumer protection advocates
Key questions
- Does Section 13(b) of the FTC Act allow federal district courts to award monetary equitable relief (restitution or disgorgement) in FTC enforcement suits?
- If so, are there limits on the kinds of monetary relief district courts may award under Section 13(b)?