United States:
Seventh Circuit Strikes A Blow Against The FTC's Preferred Enforcement Power
04 September 2019
Debevoise & Plimpton
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Key takeaways:
- The Seventh Circuit recently held
that the FTC does not have legal authority to obtain restitution in
cases brought directly in federal court.
- As a result of this ruling, the FTC
in competition cases has lost its ability to seek restitution in
the Seventh Circuit. In consumer protection cases brought in the
Seventh Circuit, the FTC can still pursue restitution pursuant to a
lengthy and cumbersome process that first requires an
administrative ruling prior to bringing a subsequent follow-on
action in federal court.
- This decision upsets decades of
practice regarding a cornerstone of the FTC's consumer
protection and competition efforts and will have immediate,
far-reaching ramifications.
Seventh Circuit Strikes a Blow Against the
FTC's Preferred Enforcement Power
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