FTC Faces Narrow Supreme Court Path to Preserve Penalty Powers

Consumer Protection Defense and Compliance Partner Anthony DiResta was cited in a Bloomberg Law article about a U.S. Supreme Court case that will decide whether the Federal Trade Commission (FTC) can pursue restitution when seeking an injunction to stop fraud. The 1914 Federal Trade Commission Act creating the commission does not specifically include this power, but courts had generally allowed the FTC to do so under the idea that fraudsters would avoid any real consequences if they were not compelled to pay back victims. However, recent appellate rulings have held the opposite, and the high court will now review the issue. Mr. DiResta commented on what the justices might consider when deciding.

"They're going to have to make some value judgments on the role of administrative agencies and the FTC," he said.

READ: FTC Faces Narrow Supreme Court Path to Preserve Penalty Powers