FTC Suffers Another Legal Blow to Enforcement Arsenal

In FTC v. Credit Bureau Center, the Federal Trade Commission (FTC) sought both restitution and injunction against the defendants, but the Seventh Circuit Court of Appeals ruled that Section 13(b) of the FTC Act does not authorize restitution, only injunctive relief. This decision overruled FTC v. Amy Travel Service and eight other cases in different circuits and will most likely change the dynamic for companies facing the FTC in the future.

Co-chair of the firm's Consumer Protection Defense and Compliance Team and a former director of the FTC’s Southeast Regional office, Anthony DiResta, commented, "Think about now if [the FTC] is in settlement negotiations and there are discussions about monetary relief. I think companies and counsel will start not only tapping the brakes — they are going to put their foot pretty hard on the brakes when it comes to restitution, disgorgement or monetary relief in light of this Seventh Circuit decision."

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