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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The US Court of Appeals for the Seventh Circuit clarifies the means by which the FTC can exercice its enforcement authority without being able to seek any restitution thereafter (Credit Bureau)
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