United States Supreme Court Defangs FTC in Explosive Decision

| By:

United States Federal Trade CommissionThe United States Supreme Court issued an explosive decision in AMG Capital Management, LLC et al v Federal Trade Commission, invalidating the Commission’s attempt and assumed power to pursue equitable monetary relief such as restitution or disgorgement under 13(b).

Held: Section 13(b) does not authorize the Commission to seek, or a court to award, equitable monetary relief such as restitution or disgorgement. Pp. 3–15.

The immediate result is that the FTC’s largest judgment in history ($1.3 billion) against the companies belonging to payday lending kingpin Scott Tucker, has been undone.

The larger implication is that all of the FTC’s pending lawsuits seeking such relief against defendants under 13(b) are in mortal peril.

“Nothing we say today, however, prohibits the Commission from using its authority under §5 and §19 to obtain restitution on behalf of consumers,” the Court said. “If the Commission believes that authority too cumbersome or otherwise inadequate, it is, of course, free to ask Congress to grant it further remedial authority.”

Over the past five years alone, the FTC has refunded $11.2B to consumers through awards granted under 13(b).

Scott Tucker is currently in prison serving time for charges related to the FTC lawsuit. He was the subject in a Netflix Series called “Dirty Money” in 2018.

This story will be updated…

Last modified: April 22, 2021
Sean Murray

Category: Legal Briefs

Home Legal Briefs › United States Supreme Court Defangs FTC in Explosive Decision

    ROK Financial

    IAC - In Advance Capital

    Highland Hill Capital

    Unique Funding Solutions

    Flash Advance

    Forward Financing

    Merchant Financing Leads

    Big Think Capital

    Symplifi Capital

    Spartan Capital

    Legend Funding




    Vox Funding


    Splash Advance

    Pearl Capital

    CFG Merchant Solutions

    South End Capital


    Global Funding Experts


    Meridian Leads

    Accord Business Funding

    deBanked CONNECT MIAMI