Congress Likely To Legislate Monetary Penalty Authority In FTC Enforcement If SCOTUS Strikes It
White House, Democrat majority in Congress and likely next FTC chair support the agency wielding the authority, says advertising law attorney Holly Melton. Supreme Court, though, likely will rule in pending cases that a strict reading of an FTC regulation doesn’t grant monetary penalty authority.
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Limiting FTC authority to enforcement started after legislation passes rather than all pending complaints as House bill allows could be divisive. But consumer health marketers question number of years before a complaint is filed agency can allege a business used false and misleading advertising under legislation the House passed.
Health, beauty and wellness industry stakeholders believe Lina Khan’s appointment increases chances FTC will aggressively enforce against e-commerce giant Amazon. Agency movement alleging antitrust against Amazon could impact the pricing and sales of products online.
Only bill introduced in Congress on amending Sec. 13(b) of FTC rules to restore authority would make all pending false advertising enforcements subject to the authority. H.R. 2668 also would allow FTC to target advertising as far back as 10 years from when it files a complaint.