FTC Predicted ‘Parade Of Horribles’ If Third Circuit Were To Rule As It Just Did

06 Mar 2019

The Federal Trade Commission is accustomed to seeking permanent injunctions (and monetary penalties) from companies for past violations under Section 13(b) of the FTC Act, which it contends is an invaluable deterrent to bad behavior. However, the Third Circuit says FTC’s interpretation of the section’s provisions is an untenable stretch of statutory language.

Man Controlling Trade statue in front of the Federal Trade Commission Building

For decades, companies alleged by the Federal Trade Commission to have engaged in “unfair or deceptive acts or practices in or affecting commerce” more often than not have landed in federal court, facing possible permanent injunctions and monetary penalties under Section 13(b) of the FTC Act.

Take for example AMG Capital Management, which in late 2016 was ordered by a Nevada federal court to pay a...