§57b Civil Actions for Violations of Rules and Cease and Desist Orders Respecting Unfair or Deceptive Acts or Practices

Summary

Gives the Federal Trade Commission (FTC) the power to sue people, partners, or companies in federal or state court when they break FTC rules about unfair or deceptive acts or practices. The FTC cannot use this for interpretive rules or for rules it has said are not unfair. The FTC can also sue when someone breaks a final cease-and-desist order. For those cases, the court can order relief only if the FTC shows the act was one a reasonable person would have known was dishonest or fraudulent. The court can order fixes to help people harmed by the practices. That can include undoing or changing contracts, returning money or property, paying damages, and telling the public about the violation. The court may not award punitive damages. If a final cease-and-desist order already exists, the FTC’s findings of fact in that order are usually treated as final unless the order says otherwise or they must be supported by evidence. The FTC must start suit within 3 years of the violation, except when a qualifying cease-and-desist proceeding was begun within 3 years; then the FTC can sue up to 1 year after the order becomes final. These remedies add to any other state or federal rights.