§57b Civil actions for violations of rules and cease and desist orders respecting unfair or deceptive acts or practices

Summary

The Federal Trade Commission can sue a person, partnership, or company in federal or state court when they break a rule about unfair or deceptive acts or practices, except for interpretive rules or rules the Commission has said are not violations. The Commission can also sue someone who violates a final cease-and-desist order. If the Commission shows the act was something a reasonable person would have known was dishonest or fraudulent, the court may order help. When a cease-and-desist order is final, the Commission’s factual findings from that order are usually treated as true in the lawsuit unless the order says they are not, or the order became final in a way that requires the findings to be backed by evidence. The court must try to notify people harmed by the conduct, and it can use public notice if needed. The court can order fixes to help injured people. These can include canceling or changing contracts, returning money or property, paying damages, and warning the public. The court cannot impose punitive (exemplary) damages. Most lawsuits must start within 3 years of the bad act. But if the Commission began the cease-and-desist proceeding within those 3 years, it can sue up to one year after the order becomes final. These remedies add to, and do not replace, any other rights or powers under state or federal law.