Supreme Court Weighs Whether FTC Law Allows Consumer Redress

Supreme Court justices struggled to balance precedent allowing the FTC to pursue consumer redress from fraudsters against limitations in the agency’s governing statute on a case involving a payday lender’s $1.3 billion penalty.

The high court heard arguments Wednesday in AMG Capital Management LLC v. FTC, a case that could constrain the commission from seeking monetary relief for fraud victims under section 13(b) of the Federal Trade Commission Act. Section 13(b) was a 1973 amendment to the 1914 law that created the commission.

The language of the statute only says that the FTC could seek injunctive relief, but ...