FTC Enforcement Authority in the Modern Era: A Commission in Crisis?

This note provides a brief history of the Federal Trade Commission (FTC)’s enforcement authority before analyzing the U.S. Court of Appeals for the seventh Circuit’s circuit-splitting decision in FTC v. Credit Bureau Center, LLC. As the Supreme Court prepares to tackle questions surrounding authority to seek monetary relief, I contextualize how enforcement authority has historically been derived before analyzing how the issue may be resolved. Doing so involves engaging several cases that may prove consequential in determining the outcome and outlines potential legislative solutions to the battle over restitution. Before arriving at the most likely scenarios, a view of the budding relationship between consumer protections giants the FTC and Consumer Financial Protections Bureau (CFPB) provides potential for a synergistic solution, but uncertainty surrounding both institutions indicates a murky outlook on a purely administrative resolution. This in-depth dive, breaking down various aspects of the administrative predicament, details the common law history of traditional restitution authority in the FTC, examines challenges facing the FTC and CFPB, and explores how similar issues facing the Securities and Exchange Commission (SEC) may affect FTC enforcement authority