No. 23-853

Credit Bureau Center, LLC, et al. v. Federal Trade Commission

Lower Court: Seventh Circuit
Docketed: 2024-02-07
Status: Denied
Type: Paid
Experienced Counsel
Tags: disgorgement equitable-monetary-relief federal-trade-commission restitution section-13(b) section-19
Key Terms:
Securities JusticiabilityDoctri
Latest Conference: 2024-06-13
Question Presented (AI Summary)

Whether Section 19 of the FTC Act, 15 U.S.C. § 57b(b), which prohibits the award of 'any exemplary or punitive damages,' empowers the Commission to seek and a court to award disgorgement of a business's gross receipts as punishment for violating the Act, and therefore impose the same remedy, for the same reasons, and for the same victims under Section 19 as was done under Section 13(b)

Question Presented (OCR Extract)

QUESTIONS PRESENTED In 2018 the Federal Trade Commission obtained a punitive disgorgement award against the Petitioners, a small credit-repair company and its owner. The judgment ordered Petitioners to surrender the company’s total gross revenue, without any reduction for legitimate business expenses, pursuant to Section 13(b) of the Federal Trade Commission Act (FTC Act). FTC v. Credit Bureau Cir., LLC, 325 F.Supp.3d 852, 869-70 (N.D. Ill. 2018). This Court ultimately granted review of that very decision, to address the use of Section 13(b). See FTC v. Credit Bureau Ctr., LLC, 141 S.Ct. 194 (July 9, 2020). The case was consolidated with AMG Cap. Mgmt., LLC v. FTC, 593 U.S. 67, 70 (2021), and this Court unanimously held that Section 13(b) does not “authorize[] the Commission to seek, and a court to award, equitable monetary relief such as restitution or disgorgement.” On remand, however, the FTC asked the district court to “reimpose the prior judgment pursuant to section 19 of the Federal Trade Commission Act, 15 U.S.C. § 57(b).” FTC v. Credit Bureau Ctr., LLC, No. 17-cv-194, 2021 WL 4146884, at *1 (N.D. IIL Sept. 13, 2021). In its opinion granting that request, the district court allowed the “FTC [to] seek[] the same remedy, for the same reasons, and for the same victims ... via section 19 as it did under section 13(b).” Id. at *11. Now, before this Court for a second time, Petitioners present the following question: Whether Section 19 of the FTC Act, 15 U.S.C. § 57b(b), which prohibits the award of “any exemplary or punitive damages,” empowers the Commission to ii seek and a court to award disgorgement of a business’s gross receipts as punishment for violating the Act, and therefore impose the same remedy, for the same reasons, and for the same victims under Section 19 as was done under Section 13(b).

Docket Entries

2024-06-17
Petition DENIED. Justice Barrett took no part in the consideration or decision of this petition.
2024-05-28
DISTRIBUTED for Conference of 6/13/2024.
2024-05-22
2024-05-08
Brief of respondent Federal Trade Commission in opposition filed.
2024-03-28
Motion to extend the time to file a response is granted and the time is further extended to and including May 8, 2024.
2024-03-26
Motion to extend the time to file a response from April 8, 2024 to May 8, 2024, submitted to The Clerk.
2024-02-29
Motion to extend the time to file a response is granted and the time is extended to and including April 8, 2024.
2024-02-28
Motion to extend the time to file a response from March 8, 2024 to April 8, 2024, submitted to The Clerk.
2024-02-01
Petition for a writ of certiorari filed. (Response due March 8, 2024)
2024-01-29
Application (23A699) denied by Justice Barrett.
2024-01-25
Application (23A699) to extend the time to file a petition for a writ of certiorari from February 1, 2024 to April 1, 2024, submitted to Justice Barrett.

Attorneys

Credit Bureau Center, LLC, et al.
Oliver James DunfordPacific Legal Foundation, Petitioner
Oliver James DunfordPacific Legal Foundation, Petitioner
Caleb Joseph KruckenbergPacific Legal Foundation, Petitioner
Caleb Joseph KruckenbergPacific Legal Foundation, Petitioner
Federal Trade Commission
Elizabeth B. PrelogarSolicitor General, Respondent
Elizabeth B. PrelogarSolicitor General, Respondent