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How Pending Legislation Could Affect Your Company's Compliance Strategy

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September 1, 2021
Social Selling News

 

By Larry Steinberg and William Miller

When it reversed 40 years of appellate precedent by ruling that Section 13(b) does not authorize the Federal Trade Commission to seek monetary relief, the Supreme Court relied not only on the language of Section 13(b), but also on the presence of other provisions in the FTC Act, which expressly allow the FTC to obtain monetary relief for consumers. The Court, in its unanimous April 22, 2021, opinion in AMG Capital Management v. Federal Trade Commission, pointed to Section 5 and Section 19 of the FTC Act, which provide for awards of restitution and monetary penalties. But the FTC Act conditions such an award on various administrative procedures that the FTC has characterized as inadequate and cumbersome.

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