Unanimous court curtails FTC’s ability to obtain restitution for deceptive practices

The Supreme Court on Thursday unanimously ruled against the Federal Trade Commission in a dispute with a payday loan company over the extent of the commission’s authority to seek monetary restitution from companies engaged in deceptive practices.

In an opinion by Justice Stephen Breyer, the court held that Section 13(b) of the Federal Trade Commission Act does not authorize the FTC to seek (and does not allow courts to award) “equitable monetary relief such as restitution or disgorgement.” That’s because the statutory language at issue authorizes only injunctions, not monetary relief.