Unanimous Supreme Court Curtails the Federal Trade Commission’s Authority to Obtain Monetary Remedies in Federal Court
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Key takeaways:
- Reversing decades of Federal Trade Commission (the “FTC”) reliance and precedent, the Supreme Court in AMG Capital Management, LLC v. FTC unanimously held that Section 13(b) of the Federal Trade Commission Act does not grant the FTC authority to obtain monetary remedies in federal court.
- The FTC is actively pursuing legislation to reverse the Supreme Court’s decision. Members of Congress will ultimately determine whether the current statutory scheme—which authorizes monetary remedies under different statutory provisions but subject to certain safeguards and constraints—must be amended.
- Companies currently under investigation or in litigation with the FTC should reevaluate legal arguments, strategies and tactics in light of the Supreme Court’s decision.