House passes bill to revive FTC authority to recover money for consumers

The House of Representatives passed the Consumer Protection and Recovery Act, largely along party lines, to revive the Federal Trade Commission’s (FTC) authority to return money to constituents harmed by companies found to engage in deceptive practices. The bill passed with widespread support from Democrats, yet Republicans opposed to the bill argued on the floor that the legislation was incomplete at the time of the vote. The passage of the bill comes after the Supreme Court unanimously ruled in early 2021 that the FTC did not have authority under a provision known as Section 13(b) to obtain equitable monetary relief. The Biden administration issued a statement in support of the House bill, stating, “The Administration applauds this step to expressly authorize the FTC to seek permanent injunctions and pursue equitable relief for all violations of law enforced by the Commission and ensure that the cost of illegal practices falls on bad actors, not consumers targeted by illegal scams.”