In the Headlines
December 11, 2023

Meta Lawsuit Against the FTC Could Put a Leash on the Agency's Regulatory Powers

The Record

Securities Enforcement Defense Team Co-Chair Scott Mascianica was cited in an article published by The Record detailing Meta's lawsuit challenging the constitutionality of the structure of the Federal Trade Commission (FTC). Meta's suit comes in response to new restrictions the agency announced against the company that changed the terms of a prior order. If Meta prevails, the FTC would lose power in trying to enforce federal consumer protection rules, including by preventing it from pursuing enforcement actions through its in-house court. Mr. Mascianica explained that the case has parallels to the SEC v. Jarkesy case currently before the U.S. Supreme Court that concerns the U.S. Securities and Exchange Commission's (SEC) administrative court. The U.S. Court of Appeals for the Fifth Circuit previously ruled that the SEC's internal proceedings are unconstitutional. Mr. Mascianica commented on how the outcome of the Jarkesy case could affect Meta's suit.

"There is a good chance the Court will rule that administrative proceedings involving the imposition of civil penalties will require jury trials," he said. "If the Court upholds one or more of the Fifth Circuit's bases, this will greatly increase Meta's chances of success on some of its points."

READ: Meta Lawsuit Against the FTC Could Put a Leash on the Agency's Regulatory Powers

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