Supreme Court Weighs Whether FTC Law Allows Consumer Redress

Jan. 13, 2021, 5:09 PM UTC

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 ...

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