Clifford Chance

Supreme Court Rules FTC Cannot Seek Monetary Relief Under Section 13 of the FTC Act

April 23, 2021

On April 22, 2021, the Supreme Court unanimously held in AMG Capital Management, LLC v. Federal Trade Commission that §13(b) of the Federal Trade Commission Act—which authorizes the FTC to obtain a "permanent injunction" in competition or consumer protection cases filed in federal court—does not authorize the FTC to seek equitable monetary relief such as restitution or disgorgement. Instead, the FTC must pursue equitable monetary relief through its §5 and §19 powers, which have more conditions and limitations than §13(b). The decision is the latest by the present Court to cabin federal agencies' efforts to pursue penalties beyond those expressly authorized by Congress. While this decision may limit the tools available to the FTC's enforcement efforts in the short term, it provides clarity on the Commission's statutory enforcement capabilities. That said, any limits may be short-lived: with antitrust enforcement garnering increased national attention, there seems to be bipartisan support in Congress to re-equip the FTC with this capability in the near future.

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