Resource

Letter supporting HR2668 to restore FTC power to protect consumers

Last updated: 7/20/2021

A recent Supreme Court decision severely limits the FTC's ability to recover ill-gotten gains from wrongdoers and then provide restitution to victim-consumers. Excerpt from a downloadable PIRG-backed group letter supporting HR2668, (Cardenas-CA), the Consumer Protection and Recovery Act, which would restore FTC Act Section 13(b) authorities:

"For decades, the FTC relied on Section 13(b) of the Federal Trade Commission Act to hold bad actors accountable when they violate the law. Under 13(b), the FTC has returned their ill-gotten gains to harmed consumers and small businesses. Since July 2018, it has returned $11.5 billion to nearly 10 million people across the country.  However, the Supreme Court’s recent decision in AMG Capital Management, LLC, et al. v. Federal Trade Commission has seriously compromised this valuable law enforcement tool. The Court held that the FTC Act does not give the Commission the authority to get monetary relief in Section 13(b) enforcement actions, and that it is now up to Congress to restore FTC’s ability to refund harmed consumers. The decision has already affected ongoing FTC cases and will likely impact millions of consumers if Congress does not act quickly. [...] In October 2020, the bipartisan group of all five FTC commissioners wrote to Congress sounding the alarm that the FTC’s authority was being threatened, and urged leaders to clarify the agency’s ability to get redress and recover stolen funds. Now that the Supreme Court has issued its decision, swift congressional action is critical. By passing H.R. 2668, Congress will do a great service for the American people and honest businesses. It will discourage scammers, preying on our parents and grandparents and our men and women in uniform, from thumbing their noses at the law."

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