The
U.S. Supreme Court on Thursday made it more difficult for the
FTC to win back lost funds, ruling 9-0 that the Federal Trade
Commission Act allows it to ask a judge for injunctions to stop
bad behavior but not to claw back money.
Cardenas' bill, which was introduced on Tuesday, would amend the
FTC Act to confirm the agency's authority to "seek permanent
injunctions and other equitable relief," according to the bill's
text.
"The COVID-19 pandemic has given rise to an increase of scams
and fraud that prey on consumers' fears and financial
insecurities," Cardenas said in a statement on Tuesday.
"Inaction is not an option and will only embolden these bad
actors."
The bill has 13 Democratic co-sponsors, including Representative
Frank Pallone, chair of the Energy and Commerce Committee, and
Representative Jan Schakowsky, chair of its consumer protection
subcommittee. The panel will hold a hearing on the matter next
week.
Senator Maria Cantwell, chair of the Senate Commerce Committee,
also indicated an interest in a bill to allow the FTC to seek
restitution.
"We are working to move legislation immediately to make sure
this authority is properly protected," she said in a statement
on Thursday.
(Reporting by Diane Bartz; Editing by Bill Berkrot)
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