FTC Predicted ‘Parade Of Horribles’ If Third Circuit Were To Rule As It Just Did
The Federal Trade Commission is accustomed to seeking permanent injunctions (and monetary penalties) from companies for past violations under Section 13(b) of the FTC Act, which it contends is an invaluable deterrent to bad behavior. However, the Third Circuit says FTC’s interpretation of the section’s provisions is an untenable stretch of statutory language.
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US FTC commissioners Rohit Chopra and Rebecca Slaughter maintain that the agency’s no-money, no-fault settlement with Sunday Riley Skincare, now finalized, sends a message of FTC permissiveness regarding fake online reviews that artificially boost brands’ standing and product sales.
At least one FTC commissioner seems convinced that the agency’s Enforcement Guides are ripe for an update to address unscrupulous influencer marketing practices. Democrat Rohit Chopra proposes their codification into formal rules that would make violators liable for civil penalties and damages.
FTC Scores Preliminary Injunction Against ‘Free Trial’ Scam, Another Case That Could Test Agency Authorities
The US Federal Trade Commission’s authority to secure permanent injunctions against defendants and obtain penalties for misconduct under FTC Act consumer protection provisions has taken hits in federal appeals courts of late. But for now, it is business as usual for the FTC in California federal court where it just won a preliminary injunction against alleged beauty and dietary supplement “free trial” fraudsters.