The continuing questions over the extent of the FTC’s enforcement authority to obtain monetary relief under Section 13(b) did not stop the Commission from filing a lawsuit on November 1 against multi-level marketer Neora, LLC and its CEO Jeffrey Olson for purportedly operating an illegal pyramid scheme that used deceptive marketing to sell supplements, skin creams and other products. Pursuant to Section 13(b), the FTC seeks an injunction to stop Neora’s alleged pyramid scheme and…

Last week, the U.S. Court of Appeals for the Seventh Circuit cannonballed directly into the roiling waters of debate over the Federal Trade Commission’s enforcement powers, when it determined in a closely-watched appeal that the agency does not have the right to restitution under the primary provision the Commission uses to attack fraud — Section 13(b) of the FTC Act.  The decision is certain to lead to other challenges to the agency’s authority, and has…

Last month, we wrote about the decision of the U.S. Court of Appeals for the Third Circuit in FTC v. Shire Viropharma Inc., holding that the FTC may only bring a case under Section 13(b) of the FTC Act when the FTC can articulate specific facts that a defendant “is violating” or “is about to violate” the law. We noted that the same issue in the context of a consumer protection action is likely headed…