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1 1 (July 17, 2020)

handle is hein.crs/govdazk0001 and id is 1 raw text is: Resarh Service Will the FTC Need to Rethink Its Enforcement Playbook (Part II)? Circuit Split Casts Doubt on the FTC's Ability to Seek Restitution in Section 13(b) Suits Updated July 17, 2020 UPDATE: On July 9, 2020, the U.S. Supreme Court agreed to review the Seventh Circuit's decision in FTC v. Credit Bureau Center and the Ninth Circuit's decision in AMG Capital Management . FTC. The Court has consolidated these cases for briefing and oral argument. As discussed in this Sidebar, the issue in these cases is whether the Federal Trade Commission may obtain restitution in suits under Section 13(b) of the Federal Trade Commission Act. The originalpostfrom January 30,2020 is below. In August 2019, the U.S. Court of Appeals for the Seventh Circuit held in FTC v. Credit Bureau Cenier LLC, that the Federal Trade Commission (FTC or Commission) cannot obtain restitution (i. e., repayment of money for consumer redress) in suits under Section 13(b) of the Federal Trade CommissionAct (FTC Act). In so doing, the Seventh Circuit overturned its own precedent and created a split of opinion on this issue with eight other federal courts of appeals. The Credit Bureau Center decision also adds to recent case law curtailing the FTC's enforcement authority under Section 13(b) in other respects, including a decision by U.S. Court of Appeals for the Third Circuit (discussed in an earlier Sidebar) limiting the FTC's ability to bring Section 13(b) suits at all. Credit Bureau Center has significant implications for the FTC's enforcement practices. The Commission generally lacks authority to impose civil monetary penalties when bringing suits based on a defendant's first-time violation of the FTC Act. Consequently, the FTC has instead relied on restitution under Section 13(b) to obtain monetary relief in such suits. Unless and until the Supreme Court resolves the newly- created split among the circuits as to whether restitution is available in Section 13(b) suits, the FTC will have different enforcement powers in different jurisdictions, and may be limited to seeking primarily non- monetary injunctive relief and cease-and-desist orders from courts within the Seventh Circuit. Congressional Research Service https://crsreports.congress.gov LSB10388 CRS Lega i&sebar Prepa red.r Membersand C o m m ; .. e e s o f C o n g clC o n --------------... --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.........

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