ALLcrimesfood&drugstaxestelecomcommercehealthconservationtransportationagricultureveteransbrowse all titles »
0

15 U.S.C. § 57bCivil actions for violations of rules and cease and desist orders respecting unfair or deceptive acts or practices

submitted 112 years ago by Pub. L. 93-637 to r/title-15-COMMERCE-AND-TRADE · 773 words · no verdicts yet

in plain englishAI-generated · not legal advice

The Federal Trade Commission can sue a person or business in court for breaking one of its rules or for a dishonest, deceptive act covered by a cease-and-desist order. A court can order refunds, contract fixes, and public notice, but never punitive damages. The Commission generally must sue within three years.

(a) Suits by the Commission. The Commission can bring a civil lawsuit, in federal district court or a state court with proper jurisdiction, in two situations. First, if a person, partnership, or corporation violates a rule about unfair or deceptive acts or practices — other than an interpretive rule, or a rule the Commission has said isn't a section 45(a) violation when broken — the Commission can sue for the relief described in subsection (b). Second, if someone engages in an unfair or deceptive act or practice that a final Commission cease-and-desist order already covers, the Commission can also sue; if it convinces the court that a reasonable person would have known the conduct was dishonest or fraudulent, the court can grant the same subsection (b) relief. (b) Nature of relief available. The court can order whatever relief is needed to make up for harm to consumers or others caused by the rule violation or the unfair or deceptive practice. That can include canceling or rewriting contracts, refunding money, returning property, paying damages, and requiring public notice about what happened. The court can never award exemplary or punitive damages. (c) Conclusiveness of Commission findings; notice to injured persons. If a cease-and-desist order about someone's rule violation or unfair/deceptive act has already become final, and a lawsuit is later brought under this section about that same conduct, the Commission's factual findings from that earlier proceeding are treated as conclusive (already proven) — unless the order itself says its findings aren't conclusive, or the order became final only because no one appealed it in time, in which case the findings are conclusive only if evidence supports them. The court must give notice of the lawsuit in a way reasonably likely to reach the people allegedly harmed; the court can choose to do this by publication. (d) Time for bringing actions. The Commission generally cannot sue more than 3 years after the rule violation or the unfair/deceptive act happened. Exception: if a cease-and-desist order about that same conduct became final, and the proceeding that led to it started within 3 years of the conduct, the Commission can still sue any time up to one year after the order becomes final. (e) Other remedies unaffected. The remedies in this section add to, and don't replace, any other remedy available under state or federal law. Nothing here limits any other legal authority the Commission has.
the actual law source: uscode.house.gov ↗public domain
(a) Suits by Commission against persons, partnerships, or corporations; jurisdiction; relief for dishonest or fraudulent acts
(1)

If any person, partnership, or corporation violates any rule under this subchapter respecting unfair or deceptive acts or practices (other than an interpretive rule, or a rule violation of which the Commission has provided is not an unfair or deceptive act or practice in violation of section 45(a) of this title), then the Commission may commence a civil action against such person, partnership, or corporation for relief under subsection (b) in a United States district court or in any court of competent jurisdiction of a State.

(2)

If any person, partnership, or corporation engages in any unfair or deceptive act or practice (within the meaning of section 45(a)(1) of this title) with respect to which the Commission has issued a final cease and desist order which is applicable to such person, partnership, or corporation, then the Commission may commence a civil action against such person, partnership, or corporation in a United States district court or in any court of competent jurisdiction of a State. If the Commission satisfies the court that the act or practice to which the cease and desist order relates is one which a reasonable man would have known under the circumstances was dishonest or fraudulent, the court may grant relief under subsection (b).

(b) Nature of relief available

The court in an action under subsection (a) shall have jurisdiction to grant such relief as the court finds necessary to redress injury to consumers or other persons, partnerships, and corporations resulting from the rule violation or the unfair or deceptive act or practice, as the case may be. Such relief may include, but shall not be limited to, rescission or reformation of contracts, the refund of money or return of property, the payment of damages, and public notification respecting the rule violation or the unfair or deceptive act or practice, as the case may be; except that nothing in this subsection is intended to authorize the imposition of any exemplary or punitive damages.

(c) Conclusiveness of findings of Commission in cease and desist proceedings; notice of judicial proceedings to injured persons, etc.
(1)

If (A) a cease and desist order issued under section 45(b) of this title has become final under section 45(g) of this title with respect to any person’s, partnership’s, or corporation’s rule violation or unfair or deceptive act or practice, and (B) an action under this section is brought with respect to such person’s, partnership’s, or corporation’s rule violation or act or practice, then the findings of the Commission as to the material facts in the proceeding under section 45(b) of this title with respect to such person’s, partnership’s, or corporation’s rule violation or act or practice, shall be conclusive unless (i) the terms of such cease and desist order expressly provide that the Commission’s findings shall not be conclusive, or (ii) the order became final by reason of section 45(g)(1) of this title, in which case such finding shall be conclusive if supported by evidence.

(2)

The court shall cause notice of an action under this section to be given in a manner which is reasonably calculated, under all of the circumstances, to apprise the persons, partnerships, and corporations allegedly injured by the defendant’s rule violation or act or practice of the pendency of such action. Such notice may, in the discretion of the court, be given by publication.

(d) Time for bringing of actions

No action may be brought by the Commission under this section more than 3 years after the rule violation to which an action under subsection (a)(1) relates, or the unfair or deceptive act or practice to which an action under subsection (a)(2) relates; except that if a cease and desist order with respect to any person’s, partnership’s, or corporation’s rule violation or unfair or deceptive act or practice has become final and such order was issued in a proceeding under section 45(b) of this title which was commenced not later than 3 years after the rule violation or act or practice occurred, a civil action may be commenced under this section against such person, partnership, or corporation at any time before the expiration of one year after such order becomes final.

(e) Availability of additional Federal or State remedies; other authority of Commission unaffected

Remedies provided in this section are in addition to, and not in lieu of, any other remedy or right of action provided by State or Federal law. Nothing in this section shall be construed to affect any authority of the Commission under any other provision of law.

Source credit: (Sept. 26, 1914, ch. 311, § 19, as added Pub. L. 93–637, title II, § 206(a), Jan. 4, 1975, 88 Stat. 2201.)

history & why it existsrecord from the source credit
  • 1914Enacted · Pub. L. 93-637 · 88 Stat. 2201

A history note hasn’t been published yet. The record shows enactment by Pub. L. 93-637 on 1914-09-26.

all 0 arguments · sorted by: best

0/280

no arguments yet — make the first case