Supreme Court Slashes FTC’s Power to Seek Monetary Awards

  • Ruling cuts tool agency used to collect billions for consumers
  • Unanimous decision is a triumph for business trade groups

Photographer: Paul J. Richards/AFP/Getty Images

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The U.S. Supreme Court slashed the Federal Trade Commission’s power to seek monetary awards in court, throwing out a legal tool the consumer-protection agency has used to collect billions of dollars over the past decade.

The justices on Thursday unanimously said the FTC can’t seek consumer redress when it invokes a provision that lets the agency go straight to federal court to try to stop an alleged fraud. The ruling is a triumph for business trade groups, which had urged the court to curb the agency’s powers.