January 28, 2019

HBW Insight Quotes Mike Blume in an Article About How the FTC Claimed Authority to Chase Permanent Injunctions and Monetary Relief from Alleged Violators of Consumer Protection Provisions

1 min

On January 28, 2019, Mike Blume was quoted in HBW Insight about how the Federal Trade Commission has long held that Section 13(b) of the FTC Act authorizes the agency to seek permanent injunctions against, and monetary relief from, alleged violators of consumer protection provisions, but that understanding is being put to the test and cracks are beginning to show, according to attorneys.

Mr. Blume said that the FTC's claim to the expansive authority at issue under Section 13(b) is "somewhat creative … and has always rested on a shaky foundation."

In a 2018 blog post, Blume and other Venable partners note that while Section 13(b) empowers the FTC to seek preliminary injunctions while civil or administrative adjudications are pending, the statutory provision limits the agency’s authority to obtain permanent injunctions to "proper" cases where "proper proof" has been demonstrated.