Knowledge (XXG)

AMG Capital Management, LLC v. FTC

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31: 409:, the Court found that the FTC did not have the authority under Section 13(b) of the FTC Act to seek equitable monetary relief, overturned the lower court decisions, and remanded the case for review. Breyer wrote that the FTC could engage in other processes to seek monetary relief for consumers, or "it is, of course, free to ask Congress to grant it further remedial authority." 382:
Tucker's counsel petitioned the Supreme Court to hear the case against the FTC, specifically on the question of whether Section 13(b) of the FTC Act allows for the FTC to seek monetary relief. The Ninth Circuit's decision was in alignment with most other circuit courts and numerous FTC cases before,
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service companies under several different names (including AMG Capital Management) over a fifteen-year period. The companies drew consumer complaints for charging excessively-high interest rates on the loans, with those using their services paying nearly triple what they had taken as a loan, charged
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for restitution or disgorgement. The FTC had presumed §13(b) provided that allowance and heavily used the amended language since its introduction to seek monetary relief for consumers that were financially impacted by those the agency had found in violation of fair trade practices. The practice had
361:(also known as Section 13(b) of the FTC Act), which grants the ability to seek injunctive relief in court against those found violating trade practices, a measure added by 1973 amendment to the FTC Act. Tucker's counsel questioned if the amendment was intended to include seeking 374:. The three-judge panel ruled unanimously to uphold the District Court's ruling, rejecting the counsel's argument about the legality of their lending practices and asserting that the FTC had the authority to seek monetary relief under the FTC Act. 312:
filed a formal civil suit against Tucker's companies in 2012 that asserted that the companies were deceiving consumers, and it sought to recover money that consumers had lost to those practices. Separately, Tucker was also criminally charged under
340:(equivalent to $ 1.58 billion in 2023) in fees that the FTC had sought in monetary relief for consumers that were harmed by the businesses' practices. The ruling also barred Tucker from engaging in any further consumer lending. 860: 347:. In additional to challenging the legality of the lending practices, the counsel also questioned the authority of the FTC to seek monetary damages for restitution under their charter, the 329: 119: 384: 794: 79: 344: 137: 314: 398:
Oral arguments were heard on January 13, 2021. Court observers stated that the Justices appeared to be concerned that ruling in favor of Tucker although an appropriate
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said that the Supreme Court had "ruled in favor of scam artists" and called on Congress to strengthen the FTC's powers. Senate Commerce Committee Chair
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from those that it found in violation of trade practices. The Court ruled unanimously that the FTC had misused its authority granted by the
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does not authorize the Commission to seek or a court to award equitable monetary relief such as restitution or disgorgement.
348: 289: 259: 159: 512: 300: 571: 309: 277: 568:"A Brief Overview of the Federal Trade Commission's Investigative, Law Enforcement, and Rulemaking Authority" 63: 798: 74: 762:"'The Supreme Court ruled in favor of scam artists,' FTC chief says after justices gut agency's powers" 680: 489: 405:
The Supreme Court issued its decision on April 22, 2021. In a unanimous decision authored by Justice
318: 805: 485: 419: 88: 575: 273: 112: 513:"SCOTUS rules FTC Act Section 13(b) does not authorize FTC to seek restitution or disgorgement" 832: 428: 229: 541: 362: 130: 814: 221: 205: 185: 676:"Kansas City payday loan tycoon to argue his billion-dollar fine to U.S. Supreme Court" 652: 486:"Payday lender Scott Tucker of Leawood convicted of illegal payday loans, racketeering" 432: 406: 333: 193: 844: 392: 115: 630: 285: 217: 197: 177: 133: 402:
interpretation of the FTC Act would upend decades of precedent set by the courts.
357: 456:"Payday Loan Group Slapped With Record $ 1.3B Fine for 700 Percent Lending Rates" 424: 336:. Judge Navarro ruled in October 2016 against Tucker's businesses, granting the 304: 281: 209: 399: 325:
to over 4.5 million consumers and was convicted on 17 counts in October 2017.
143: 538:"$ 1.3B award upheld against racecar driver Scott Tucker over payday loans" 823: 553: 471: 391:
that Section 13(b) does not give the FTC that authority, which created a
711: 459: 708:"U.S. Supreme Court curbs FTC's power to recoup ill-gotten gains" 395:. The Supreme Court granted certiorari to the case in July 2020. 601:, 100 F.Supp.3d 433, 437-41 (E.D. Pa. 2015). 107:
Motion for summary judgment granted in part and denied in part,
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AMG Capital Management, LLC, et al., v. Federal Trade Commission
733:"Supreme Court Curtails FTC Power to Seek Restitution in Court" 30: 692: 648:"Supreme Court Weighs Whether FTC Law Allows Consumer Redress" 435:
also called for new legislation in the wake of the decision.
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said that the decision will curtail the FTC's powers to seek
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The civil case against Tucker's businesses was heard in the
615:, 62 F.Supp.2d 25, 35-37 (D.D.C. 1999). 366:
been backed by prior case laws at lower courts, including
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AMG Capital Management, LLC v. Federal Trade Commission
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United States Supreme Court cases of the Roberts Court
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Legal counsel for Tucker appealed the decision to the
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Archived from 308:through undisclosed fees. The 1: 272:, 593 U.S. ___ (2021), was a 833:Supreme Court (slip opinion) 349:Federal Trade Commission Act 290:Federal Trade Commission Act 260:Federal Trade Commission Act 160:Federal Trade Commission Act 427:in court. Acting FTC Chair 389:FTC v. Credit Bureau Center 387:had ruled in the 2019 case 877: 824:Oyez (oral argument audio) 633: (9th Cir. 2018). 258: 171: 157: 109:FTC v. AMG Services, Inc. 28: 612:FTC v. Mylan Labs., Inc. 572:Federal Trade Commission 372:FTC v. Mylan Labs., Inc. 330:District Court of Nevada 310:Federal Trade Commission 278:Federal Trade Commission 737:The National Law Review 43:Argued January 13, 2021 45:Decided April 22, 2021 598:FTC v. Cephalon, Inc. 368:FTC v. Cephalon, Inc. 158:Section 13(b) of the 681:The Kansas City Star 631:910 F.3d 417 490:The Kansas City Star 413:Reaction to decision 420:National Law Review 544:. December 3, 2018 492:. October 13, 2017 274:U.S. Supreme Court 246:Breyer, joined by 182:Associate Justices 578:on April 22, 2021 462:. October 4, 2016 429:Rebecca Slaughter 265: 264: 230:Amy Coney Barrett 868: 837: 831: 828: 822: 819: 813: 810: 804: 777: 776: 774: 772: 757: 748: 747: 745: 743: 729: 723: 722: 720: 718: 703: 697: 696: 690: 688: 671: 665: 664: 662: 660: 643: 634: 628: 622: 616: 614: 608: 602: 600: 594: 588: 587: 585: 583: 564: 558: 557: 551: 549: 542:Associated Press 534: 525: 524: 522: 520: 508: 502: 501: 499: 497: 482: 476: 475: 469: 467: 452: 363:equitable relief 360: 339: 324: 167:Court membership 33: 32: 21: 876: 875: 871: 870: 869: 867: 866: 865: 841: 840: 835: 829: 826: 820: 817: 811: 808: 802: 786: 781: 780: 770: 768: 759: 758: 751: 741: 739: 731: 730: 726: 716: 714: 705: 704: 700: 686: 684: 673: 672: 668: 658: 656: 645: 644: 637: 624: 623: 619: 610: 609: 605: 596: 595: 591: 581: 579: 566: 565: 561: 547: 545: 536: 535: 528: 518: 516: 510: 509: 505: 495: 493: 484: 483: 479: 465: 463: 454: 453: 446: 441: 415: 385:Seventh Circuit 380: 352: 337: 322: 298: 222:Brett Kavanaugh 220: 208: 206:Sonia Sotomayor 196: 186:Clarence Thomas 92: 86: 85:141 S. Ct. 1341 44: 38: 19: 12: 11: 5: 874: 872: 864: 863: 858: 853: 843: 842: 839: 838: 806:Google Scholar 785: 784:External links 782: 779: 778: 749: 724: 698: 666: 653:Bloomberg News 635: 617: 603: 589: 559: 526: 503: 477: 443: 442: 440: 437: 433:Maria Cantwell 414: 411: 407:Stephen Breyer 379: 376: 338:$ 1.27 billion 334:Gloria Navarro 297: 294: 263: 262: 256: 255: 251: 250: 244: 240: 239: 235: 234: 233: 232: 194:Stephen Breyer 183: 180: 175: 169: 168: 164: 163: 155: 154: 150: 149: 148: 147: 141: 123: 103: 99: 98: 94: 93: 84: 71: 67: 66: 61: 57: 56: 51: 50:Full case name 47: 46: 40: 39: 34: 26: 25: 17: 13: 10: 9: 6: 4: 3: 2: 873: 862: 859: 857: 854: 852: 849: 848: 846: 834: 825: 816: 807: 800: 796: 792: 788: 787: 783: 767: 763: 756: 754: 750: 738: 734: 728: 725: 713: 709: 702: 699: 694: 683: 682: 677: 670: 667: 655: 654: 649: 642: 640: 636: 632: 627: 621: 618: 613: 607: 604: 599: 593: 590: 577: 573: 569: 563: 560: 555: 543: 539: 533: 531: 527: 514: 507: 504: 491: 487: 481: 478: 473: 461: 457: 451: 449: 445: 438: 436: 434: 430: 426: 422: 421: 412: 410: 408: 403: 401: 396: 394: 393:circuit split 390: 386: 378:Supreme Court 377: 375: 373: 369: 364: 359: 355: 350: 346: 345:Ninth Circuit 341: 335: 331: 326: 320: 316: 311: 306: 302: 295: 293: 291: 287: 283: 279: 275: 271: 270: 261: 257: 252: 249: 245: 241: 236: 231: 227: 223: 219: 215: 211: 207: 203: 199: 195: 191: 187: 184: 181: 179: 176: 174:Chief Justice 173: 172: 170: 165: 161: 156: 151: 145: 142: 139: 135: 132: 128: 124: 121: 117: 114: 110: 106: 105: 104: 100: 95: 90: 82: 81: 76: 72: 68: 65: 62: 58: 55: 52: 48: 41: 37: 27: 22: 16: 790: 769:. Retrieved 765: 740:. Retrieved 736: 727: 715:. Retrieved 701: 691:– via 685:. Retrieved 679: 669: 657:. Retrieved 651: 625: 620: 611: 606: 597: 592: 580:. Retrieved 576:the original 562: 552:– via 546:. Retrieved 517:. Retrieved 506: 494:. Retrieved 480: 470:– via 464:. Retrieved 418: 416: 404: 397: 388: 381: 371: 367: 358:§ 53(b) 342: 327: 303:ran several 301:Scott Tucker 299: 286:disgorgement 268: 267: 266: 254:Laws applied 247: 238:Case opinion 225: 218:Neil Gorsuch 213: 201: 198:Samuel Alito 189: 178:John Roberts 126: 108: 97:Case history 78: 53: 15: 496:February 6, 425:restitution 323:$ 2 billion 305:payday loan 282:restitution 210:Elena Kagan 113:F. Supp. 3d 845:Categories 515:. JD Supra 439:References 400:textualist 296:Background 125:Affirmed, 60:Docket no. 771:April 23, 742:April 23, 717:April 22, 687:April 22, 659:April 22, 582:April 23, 548:April 22, 519:April 23, 466:April 22, 354:15 U.S.C. 332:by Judge 248:unanimous 89:L. Ed. 2d 70:Citations 789:Text of 766:POLITICO 554:NBC News 472:NBC News 243:Majority 138:9th Cir. 712:Reuters 460:Reuters 153:Holding 120:D. Nev. 836:  830:  827:  821:  818:  815:Justia 812:  809:  803:  629:, 356:  228: 226:· 224:  216: 214:· 212:  204: 202:· 200:  192: 190:· 188:  129:, 910 64:19-508 797: 140:2018) 122:2014) 111:, 29 102:Prior 77:___ ( 799:U.S. 773:2021 744:2021 719:2021 689:2021 661:2021 584:2021 550:2021 521:2021 498:2018 468:2021 417:The 370:and 319:TILA 317:and 315:RICO 144:Cert 131:F.3d 116:1338 87:209 80:more 75:U.S. 73:593 795:593 693:MSN 284:or 134:417 91:361 847:: 793:, 764:. 752:^ 735:. 710:. 678:. 650:. 638:^ 570:. 540:. 529:^ 488:. 458:. 447:^ 775:. 746:. 721:. 695:. 663:. 586:. 556:. 523:. 500:. 474:. 136:( 118:( 83:)

Index

Supreme Court of the United States
19-508
U.S.
more
L. Ed. 2d
F. Supp. 3d
1338
D. Nev.
F.3d
417
9th Cir.
Cert
Federal Trade Commission Act
John Roberts
Clarence Thomas
Stephen Breyer
Samuel Alito
Sonia Sotomayor
Elena Kagan
Neil Gorsuch
Brett Kavanaugh
Amy Coney Barrett
Federal Trade Commission Act
U.S. Supreme Court
Federal Trade Commission
restitution
disgorgement
Federal Trade Commission Act
Scott Tucker
payday loan

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