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Professor Shubha Ghosh Weighs In on Consumer Protection and Recovery Act in Consumer Affairs

Posted on Thursday 4/29/2021
Shubha Ghosh

Congressional leaders look to reverse SCOTUS decision limiting the FTC

(Consumer Affairs | April 29, 2021) U.S. lawmakers are attempting to flip last week’s Supreme Court decision that takes away the Federal Trade Commission’s (FTC) ability to provide restitution to defrauded consumers. If the new ruling sticks, the FTC’s only avenue to compensate customers who have fallen victim to deceptive business practices would come in the form of injunctions, not money.

Three Representatives -- Frank Pallone Jr., (D-NJ), Jan Schakowsky (D-IL), and Tony Cárdenas (D-CA) -- are leading the fight. Cárdenas has submitted a proposed bill called the Consumer Protection and Recovery Act that would give the FTC more power to provide restitution to fraud victims ...

... While reversing a Supreme Court decision sounds like a daunting task, Professor Shubha Ghosh from the Syracuse University College of Law told ConsumerAffairs that it’s not unusual for Congress to amend legislation to overrule a Court’s reading of a statute. In fact, the Court’s decision essentially invited Congress to rework the legislation, and this could make consumer protections even stronger.

"As for consumer impact in the long run, if Congress responds as indicated, it can strengthen the power of the FTC to fight for consumers,” Ghosh said ...

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