Supreme Court Curbs FTC Authority on Consumer Redress (3)

The U.S. Supreme Court said the Federal Trade Commission doesn’t have the authority to compel consumer redress from companies, ruling unanimously in a favor of a payday lender’s challenge to a $1.3 billion penalty.

Section 13(b) of the Federal Trade Commission Act doesn’t give the FTC authority to obtain consumer redress through litigation in federal district court, the Supreme Court ruled Thursday in AMG Capital Management LLC v. FTC.

AMG Capital asked the court to overturn decades of appellate court precedent that backed the FTC’s pursuit of restitution alongside court injunctions to immediately stop alleged consumer scams and antitrust violations. ...