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,
307:
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
365:
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
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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.
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512:
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571:
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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"
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489:
405:
The
Supreme Court issued its decision on April 22, 2021. In a unanimous decision authored by Justice
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805:
485:
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513:"SCOTUS rules FTC Act Section 13(b) does not authorize FTC to seek restitution or disgorgement"
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428:
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541:
362:
130:
814:
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676:"Kansas City payday loan tycoon to argue his billion-dollar fine to U.S. Supreme Court"
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486:"Payday lender Scott Tucker of Leawood convicted of illegal payday loans, racketeering"
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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
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281:
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399:
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to over 4.5 million consumers and was convicted on 17 counts in
October 2017.
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538:"$ 1.3B award upheld against racecar driver Scott Tucker over payday loans"
823:
553:
471:
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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,
54:
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.
423:
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).
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been backed by prior case laws at lower courts, including
450:
448:
269:
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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321:statutes. He was estimated to have cost over
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532:
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20:
383:but Tucker's counsel had found that the
351:(FTC Act). Tucker's counsel referred to
444:
511:Willis, Christopher (April 23, 2021).
646:Weinburger, Evan (January 13, 2021).
276:case dealing with the ability of the
18:2021 United States Supreme Court case
7:
706:Hurley, Lawrence (April 22, 2021).
791:AMG Capital Management, LLC v. FTC
626:FTC v. AMG Capital Management, LLC
280:(FTC) to seek monetary relief for
127:FTC v. AMG Capital Management, LLC
36:Supreme Court of the United States
24:AMG Capital Management, LLC v. FTC
14:
856:United States Supreme Court cases
801:___ (2021) is available from:
674:Vockrodt, Steve (July 10, 2020).
146:. granted, 141 S. Ct. 194 (2020)
29:
851:2021 in United States case law
760:Nylen, Leah (April 22, 2021).
574:. October 2019. 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
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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
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230:Amy Coney Barrett
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222:Brett Kavanaugh
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206:Sonia Sotomayor
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186:Clarence Thomas
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85:141 S. Ct. 1341
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653:Bloomberg News
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433:Maria Cantwell
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407:Stephen Breyer
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338:$ 1.27 billion
334:Gloria Navarro
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50:Full case name
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790:
769:. Retrieved
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740:. Retrieved
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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
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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:·
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202:·
200:
192:
190:·
188:
129:, 910
64:19-508
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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
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