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Law360: GOP Concerns May Delay Bill To Restore FTC Restitution ToolApril 28, 2021
O’Melveny counsel Melissa Guidorizzi, who recently joined the firm after eight years with the Consumer Financial Protection Bureau, provided commentary to Law360 for its article highlighting the proposed Consumer Protection and Recovery Act, which would enable the Federal Trade Commission to “go after bad marketplace actors for court-ordered monetary relief.”
Some Republican lawmakers have reservations about certain provisions within the legislation, but bipartisan consensus for giving the FTC extra teeth is generally strong overall, signaling that passage of a modified bill may not be far off. After the Supreme Court recently struck down the FTC’s power to collect monetary relief for past violations, finding that the FTC Act focuses only on future activities, the need for Congress to act has become more apparent, the publication noted.
Following the SCOTUS decision, the CFPB “will be more likely to step into matters that have previously been handled by the FTC,” Guidorizzi said. “This means that more nonbank financial service providers will be subject to the CFPB's enforcement authority both to impose fines and obtain relief for consumers.”
“We expect aggressive enforcement and coordinated efforts between the agencies to increase, in concert with the numerous new consumer protection offices and resources implemented over the last several years by state regulators and attorneys general,” she added.
Law360 subscribers can read the full article here.