Federal Trade Commission v. Glenn W. Turner Enterprises, Inc.

Summary

The court denied the defendant's motion to dismiss an action by the Federal Trade Commission seeking consumer redress under Section 19 of the Federal Trade Commission Act. The court held that the statute-of-limitations issue required factual development and construed Section 19 to permit redress for deceptive practices that were the subject of a final cease-and-desist order, including conduct preceding the order.

Holdings

1. The statute-of-limitations issue could not be decided on the motion to dismiss because its resolution depended on disputed facts concerning how, when, and where the cease-and-desist order was served and whether the service location qualified under the applicable rule.
2. Section 19(a)(2) authorizes consumer redress for the deceptive act or practice that was the specific subject of the final cease-and-desist order, even if that act or practice was not repeated or continued in violation of the order.
3. Consumer redress may be sought under Section 19(a)(2) for conduct occurring before Section 19 was enacted when the cease-and-desist order was entered after January 4, 1975, and the defendant was notified that consumer redress might be sought.

Questions Presented

1. Whether the statute-of-limitations defense could be resolved on the motion to dismiss when the accrual issue depended on disputed facts concerning service of the cease-and-desist order.
2. Whether Section 19(a)(2) authorizes consumer redress for the deceptive act or practice that was the specific subject of a final cease-and-desist order even if the conduct was not repeated or continued in violation of that order.
3. Whether Section 19 authorizes consumer redress for conduct occurring before the enactment of Section 19 when the requirements of Section 206(b) of the Federal Trade Commission Improvement Act are satisfied.

Disposition

dismissed