§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 Commission rule about unfair or deceptive acts or practices (except rules that only explain the law or rules the Commission says are not violations). The Commission can also sue someone who breaks a final cease-and-desist order the Commission issued. If the court is shown that the bad act was one a reasonable person would have known was dishonest or fraudulent, the court can give relief. A court can order whatever is needed to fix harm to consumers or other businesses. That can include canceling or changing contracts, making refunds, returning property, paying damages, and telling the public about the violation. The court cannot award punitive damages. If a Commission cease-and-desist order is final, the Commission’s factual findings in that order are usually binding in a later court case unless the order says they are not or they became final by default and lack evidence. The Commission must sue within 3 years of the violation, except a final cease-and-desist order that came from a proceeding started within 3 years allows a suit up to 1 year after the order is final. These remedies do not replace other federal or state rights and do not limit the Commission’s other powers.