SCOTUS Ruling Finds FTC Cannot Seek Monetary Relief Such as Financial Restitution
The U.S. Supreme Court found that the Federal Trade Commission does not have the authority to seek monetary relief from companies and individuals who engage in unfair or deceptive acts. Penning the unanimous April 22 decision, Justice Stephen Breyer pointed to a 1973 law that granted the commission the right to see preliminary or permanent injunctions against such behavior but did not establish the agency's right to seek monetary relief for the actions. The FTC has used the practice to reap billions of dollars from businesses and individuals allegedly conducting scams, the brief said.
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The case arose when the head executive of multiple payday lending shops, Scott Tucker, was directed in 2017 to pay $1.27 billion in restitution and disgorgement for misleading and lying to customers of his businesses. Tucker appealed the decision to the U.S. Court of Appeals for the 9th Circuit, which had rejected his argument that the law doesn't provide for the FTC to seek monetary relief.