New York AG James joins coalition calling on restoration of FTC authority
(The Center Square) – New York state Attorney General Letitia James has joined a coalition of her counterparts across the country and is urging Congress to pass legislation concerning the authority of the Federal Trade Commission.
James on June 28 was one of 28 attorneys general voicing support for The Consumer Protection and Recovery Act, or H.R. 2668, which calls for lawmakers in Washington, D.C., to consider a restoration of powers within the FTC for cases involving fraudulent and anticompetitive conduct.
The U.S. Supreme Court in April limited the FTC’s oversight in recovering consumers’ money in a ruling in the case of AMG Capital Management, LLC, et al. v. Federal Trade Commission.
“As a result of the COVID-19 pandemic, many consumers are more financially vulnerable than ever before and rely on federal and state enforcers to protect their interests and return their hard-earned money when they have been defrauded,” James said of her decision to join the coalition.
James added, “If the FTC does not have the ability to obtain monetary relief and redress harms, consumers will be the ones who lose out. Our federal partners at the FTC are vital in the fight to protect consumers, which is why I urge Congress to support consumers and honest businesses by restoring these essential enforcement tools.”
Democrat U.S. Rep. Tony Cardenas of California is the primary sponsor of H.R. 2668. Two New York-based Congressional lawmakers are among 14 across the country to sign on as co-sponsors: U.S. Rep. Yvette Clarke, D-Brooklyn, and U.S. Rep. Kathleen Rice, D-Long Island.
In a jointly authored letter to U.S. House of Representatives Speaker Nancy Pelosi and other ranking members, James and the other 27 attorneys general signing it cited the FTC’s success in recent years in responding to and combating consumer fraud.
“Unfair and deceptive trade practices are a serious and pervasive problem in the United States, the letter reads. “In the past five years, the FTC has received more than 7 million reports of consumer fraud. In 2020, consumers reported losing over $3.3 billion to such practices.”
The nation’s highest court began proceedings on AMG Capital Management, LLC, et al. v. Federal Trade Commission on Jan. 13 and issued its ruling April 22. The case involved Scott Tucker, operator of multiple payday loan stores, some under the auspices of AMG Capital Management.
Lower courts had ruled in the FTC’s favor to seek monetary compensation on behalf of claimants, but Tucker’s legal counsel took the matter to the U.S. Supreme Court on the basis the FTC was not acting within its authority.
In the unanimous ruling, U.S. Supreme Court justices stated current laws do not give the FTC authority to seek equitable relief.
Chief Justice Stephen Breyer, who issued the ruling, said the FTC could seek alternative routes for monetary relief on behalf of consumers, adding the federal agency, “is, of course, free to ask Congress to grant it further remedial authority.”
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