Record contained sufficient evidence to support Dist. Ct.’s entry of permanent injunction against defendant in action under section 13(b) of Federal Trade Commission Act, alleging that defendant’s websites and referral system that automatically enrolled customers in unspecified $29.94 monthly membership in defendant’s credit-monitoring service without their prior knowledge violated Restore Online Shopper Confidence Act and other consumer protection statutes. Ct. rejected defendants’ argument that permanent injunction violated 8th Amendment’s Excessive Fine Clause, since instant injunction was not “fine.” However, Dist. Ct. erred in imposing $5 million restitution award, since: (1) section 13(b) authorizes only restraining orders and injunctions; and (2) section 13(b)’s grant of authority does not implicitly authorize restitution awards. As such, Ct. overruled its prior decision in Amy Travels, 875 F.2d 564, that allowed restitution awards in section 13(b) actions. (Dissent filed from denial of rehearing en banc.)
Federal 7th Circuit Court
Civil Court
Federal Trade Commission Act