Thursday, April 22, 2021

SCOTUS Decision in AMG Capital v. FTC

Today the Supreme Court issued a unanimous opinion in AMG Capital Management, LLC v. FTC (covered earlier here). Justice Breyer’s opinion for the Court begins:

Section 13(b) of the Federal Trade Commission Act authorizes the Commission to obtain, “in proper cases,” a “permanent injunction” in federal court against “any person, partnership, or corporation” that it believes “is violating, or is about to violate, any provision of law” that the Commission enforces. 87 Stat. 592, 15 U. S. C. §53(b). The question presented is whether this statutory language authorizes the Commission to seek, and a court to award, equitable monetary relief such as restitution or disgorgement. We conclude that it does not.

The Court’s analysis relies heavily on the interplay between §13(b) and other provisions of the Federal Trade Commission Act (§5 and §19) that deal explicitly with monetary relief. Justice Breyer concludes by observing:

Nothing we say today, however, prohibits the Commission from using its authority under §5 and §19 to obtain restitution on behalf of consumers. If the Commission believes that authority too cumbersome or otherwise inadequate, it is, of course, free to ask Congress to grant it further remedial authority.



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