Consumer Protection and Recovery Act

Consumer Protection and Recovery Act

This bill authorizes the Federal Trade Commission (FTC) to seek monetary relief in federal court from businesses that engage in unlawful commercial practices such as false advertising, consumer fraud, and anticompetitive conduct.

Specifically, the FTC may seek restitution in these cases for losses, rescission or reformation of contracts, refund of money, return of property, or disgorgement of unjust enrichment.

On April 22, 2021, the Supreme Court held in AMG Capital Management, LLC v. Federal Trade Commission that the Federal Trade Commission Act does not authorize the FTC to seek, or a court to award, such relief.

Written by the nonpartisan Congressional Research Service. All summary versions on Congress.gov