The 1914 Federal Trade Commission Act (FTCA) created the Federal Trade Commission (FTC or “the Commission”) and empowered it to prevent, and provide redress to consumers affected by, unfair methods of competition and unfair or deceptive acts or practices in or affecting commerce. In 1973, Congress added Section 13(b) to the FTCA, providing the Commission with the power to seek “preliminary injunctions” as well permanent injunctions in “proper cases.” Although the provision’s language is narrow, the FTC has since read into Section 13(b) a more expansive authority to “halt deceptive practices” by seeking equitable remedies that look a lot like monetary relief, including asset freezes, the appointment of receivers, awards of restitution, and “other relief to redress injury from consumer frauds.” David M. Fitzgerald, The Genesis of Consumer Protection Remedies Under Section 13(b) of the FTC Act, Paper at the FTC 90th Anniversary Symposium (Sept. 23, 2004), available at, https://tinyurl.com/y84ue9fx.
The FTC has come to rely heavily on this understanding of Section 13(b) in its enforcement of the FTCA. Today, consumer redress is part of many FTC enforcement actions, with the Commission bringing “dozens of cases every year seeking a permanent injunction and the return of illegally obtained funds.” FTC v. Credit Bureau Ctr., LLC, 937 F.3d 764 (7th Cir. 2019). Court awards of restitution in actions brought under Section 13(b) have enabled the Commission to return “billions of dollars to consumers who have fallen victim to a wide variety of illegal scams.” Id.
Until recently, the...
