The U.S. Court of Appeals for the seventh circuit clarifies the means by which the FTC could exercice its enforcement authority and holds that the FTC can’t seek restitution (Credit Bureau)

Background In the Credit Bureau Center case, the FTC sued a company and its owner for advertising “free” credit reports without adequately disclosing that consumers would be enrolled in an expensive credit monitoring service on an ongoing basis. [1] The FTC brought its lawsuit under Section 13(b), which authorizes the FTC to “bring suit in a district court of the United States to enjoin [an unlawful] act or practice.” [2] The FTC sought a permanent injunction, as well as an award of restitution from the defendant. Construing Section 13(b) to permit both, the district court issued the permanent injunction and ordered the defendant to pay more than $5 million in restitution. The Seventh Circuit Decision The defendant appealed to the Seventh Circuit. Although the defendant also

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Authors

  • Morgan Lewis (Boston)
  • Morgan Lewis (Philadelphia)
  • Morgan Lewis (Boston)
  • Morgan Lewis (Washington)

Quotation

Noah J. Kaufman, Steven A. Reed, Daniel S. Savrin, Willard K. Tom, The U.S. Court of Appeals for the seventh circuit clarifies the means by which the FTC could exercice its enforcement authority and holds that the FTC can’t seek restitution (Credit Bureau), 21 August 2019, e-Competitions Bulletin August 2019, Art. N° 91647

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