September 16, 2019
Partner John Villafranco
was quoted in the FTCWatch
article “FTC suffers another legal blow to enforcement arsenal.” Recently, the Federal Trade Commission (FTC) has faced difficult strategic choices after a federal court delivered a body blow to the heart of its enforcement program, reviving chatter that the agency is facing an “existential threat.” The Seventh Circuit Court of Appeals issued the latest setback last month in FTC v. Credit Bureau Center
in which a three-judge panel ruled Section 13(b) of the FTC Act only authorizes injunctive relief, not restitution.
John, who has written and spoken extensively on this matter, noted the language of the Seventh Circuit decision that dismissed contrary rulings in other circuits as based on a cursory analysis by those courts. “I expect defense lawyers will raise this issue whenever the FTC brings a case seeking money under Section 13(b),” he wrote in an e-mail. “As you can see from the Seventh Circuit decision, the court criticized contrary decisions in other circuits as based on a ‘similarly brief analysis’ as Amy Travel. They also noted that these cases have been the subject of recent judicial skepticism, which is accurate.”
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