FTC Faces Narrow Supreme Court Path to Preserve Penalty Powers

The Federal Trade Commission’s ability to compel fraudsters to pay back scam victims undergoes Supreme Court review as justices mull whether a strict reading of its 106-year-old founding statute outweighs decades of precedent.

Parties in AMG Capital Management LLC v. FTC will argue Wednesday on the agency’s ability to secure potential restitution for consumers when it seeks a preliminary injunction to stop fraud. At issue is whether the FTC Act gives the consumer and antitrust watchdog the ability to put a freeze on a defendant’s assets when seeking an emergency injunction against alleged fraud.

That power is not specifically included ...