The Federal Trade Commission (FTC) is a bipartisan federal agency whose purpose is to protect consumers and promote fair competition. The Federal Trade Commission Act is the primary statute that governs the FTC. The act gives the FTC the power to take steps to prevent unfair methods of competition and deceptive acts or practices in the marketplace. The FTC prescribes rules that specify the practices that are defined as unfair or deceptive and can seek permanent injunctions and monetary relief for injury to consumers when the act is violated. Companies and individuals who violate the law may be subject to significant fines, penalties and disgorgement of funds obtained from the bilked consumers. However, a recent unanimous Supreme Court decision now hampers the FTC’s ability to seek disgorgement for consumer injury.
Consumer Fraud Schemes