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Federal Trade Commission v. Kevin Trudeau

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ARGUED SEPTEMBER 24, 2010

Before RIPPLE, MANION, and TINDER, Circuit Judges.

Infomercialist Kevin Trudeau violated a court-approved settlement with the Federal Trade Commission by misrepresenting the content of his book The Weight Loss Cure “They” Don’t Want You to Know About. FTC v. Trudeau, 567 F. Supp. 2d 1016 (N.D. Ill. 2007). The district court held Trudeau in contempt and ordered him to pay $37.6 million to the FTC and banned him from making infomercials for three years. On appeal, we affirmed the district court’s finding of contempt but vacated the sanctions. We noted that although a $37.6 million fine “might be correct,” the district court needed to explain its math and how the funds would be admin- istered. We did not question the imposition of a coercive sanction in addition to a remedial sanction, but we held that the infomercial ban was inappropriate as a civil sanction because it did not give Trudeau an opportunity to purge, that is, to comply with the underlying order not to misrepresent his publications. FTC v. Trudeau, 579 F.3d 754 (7th Cir. 2009) (“Trudeau I”). (We assume familiarity with the contempt proceedings discussed in Trudeau I and so do not repeat that background here.)

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