H.R. 10003: Consumer Protection and Recovery Act

This bill would change the Federal Trade Commission Act to make clear that the Federal Trade Commission (FTC) can ask federal courts for permanent injunctions and other forms of equitable relief when someone violates a law the FTC enforces.

What that means in practice

The FTC already can seek court orders to stop unlawful conduct in some situations. This bill would explicitly confirm and expand that authority so the FTC can also ask courts for remedies such as:

• Restitution for consumers who lost money
• Contract rescission or reformation, meaning undoing or changing a contract tied to the violation
• Refunds
• Return of property
• Disgorgement, meaning forcing a wrongdoer to give up profits gained from the violation
• Temporary or preliminary equitable relief while a case is pending, if a court finds it appropriate

How the court would use these remedies

The bill says that in a case brought under the revised FTC authority, the court may order these remedies for the specific violation at issue. If both restitution/return of property and disgorgement are ordered for the same violation, the amount owed under disgorgement would be reduced by what was already ordered to be paid or returned under the restitution-type remedy.

Time limit

The bill includes a look-back limit: a court could not order this equitable relief for violations that happened more than 10 years before the FTC filed the lawsuit. Time spent by an individual outside the United States would not count when calculating that 10-year period.

When it would apply

These changes would apply to FTC actions that are already pending when the bill becomes law, as well as cases filed afterward.

Relevant Companies

• None found