FTC's Claimed Authority To Chase Permanent Injunctions, Monetary Relief May Lack Substantiation

 
• By Ryan Nelson

The Federal Trade Commission has long held that Section 13(b) of the FTC Act authorizes the agency to seek permanent injunctions against, and monetary relief from, alleged violators of consumer protection provisions. But that understanding is being put to the test, and cracks are beginning to show, attorneys say.

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Attorneys are watching federal court developments where pending appeals could chip away at the Federal Trade Commission’s authority to permanently enjoin and obtain monetary relief from alleged wrongdoers under the FTC Act’s Section 13(b).

According to FTC, the courts have “uniformly accepted” its construction of Section 13(b), which the agency began employing widely in...

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