April 23, 2021
Washington, DC—The National Consumers League (NCL) is deeply disappointed with today’s Supreme Court ruling in AMG Capital Management, LLC v. Federal Trade Commission. For decades, the Federal Trade Commission (FTC) has relied on section 13(b) of the FTC Act to seek restitution for victims of fraud. The court’s decision in this case undermines that authority, making it significantly more difficult for the Commission to provide relief to consumers who are defrauded by scam artists and companies engaged in unfair or deceptive business practices.
The following statement is attributable to NCL Vice President of Public Policy, Telecommunications and Fraud John Breyault:
The Court today put the interests of a convicted scammer above the needs of fraud victims. We are incredibly disheartened at the decision to deprive the FTC of one of its most effective tools for clawing back criminals’ ill-gotten gains. This decision will embolden the criminals who annually defraud millions of consumers, costing them billions of dollars and untold emotional damage. We hear practically every day from victims of scams whose financial lives have been ruined by scammers. Consumer need and deserve a consumer protection agency empowered to make them whole. Congress should urgently pass legislation restoring the FTC’s 13(b) authority to obtain compensation on behalf of fraud victims.
About the National Consumers League
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.