Published: May 13, 2021
On April 22, 2021, the Supreme Court issued a unanimous decision finding that the FTC lacks authority to pursue equitable monetary relief in federal court under Section 13(b) of the Federal Trade Commission Act (the “FTCA”). The result means that defendant Scott Tucker does not have to pay $1.27 billion in restitution and disgorgement, notwithstanding that his payday loan business was found to constitute an unfair and deceptive practice. The result also means that onlookers everywhere are scratching their heads thinking “what now?” If the FTC is stripped of its authority to pursue equitable monetary relief, then will unfair and deceptive practices run rampant, knowing that the “worst case” scenario is that they will be enjoined (but get to keep any ill-gotten profits earned in the interim)?
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