Caribbean-American Congresswoman Yvette D. Clarke has reintroduced legislation aimed at restoring the Federal Trade Commission’s (FTC) authority to recover money for consumers who fall victim to scams, fraud and other deceptive business practices.
The Consumer Protection and Recovery Act, introduced alongside Representatives Jan Schakowsky of Illinois and Rob Menendez of New Jersey, seeks to restore powers the FTC lost following a 2021 U.S. Supreme Court rulingthat significantly limited the agency’s ability to obtain financial restitution for defrauded consumers.
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If approved, the legislation would once again allow the FTC to ask federal courts to order scammers and companies that violate consumer protection laws to return money obtained through fraudulent or deceptive conduct. The bill would also authorize courts to award refunds, restitution, the return of property and other forms of equitable relief to consumers harmed by illegal practices.
Clarke, who represents New York’s 9th Congressional District, said restoring the FTC’s authority is increasingly important as Americans face growing financial losses from online scams, identity theft, fraudulent investment schemes and other consumer fraud.
“The FTC must have the tools it needs to protect consumers and ensure that those who profit from fraud are held accountable,” Clarke said, arguing that victims should have a meaningful opportunity to recover money lost through deceptive practices.
The legislation is a response to the Supreme Court’s decision in AMG Capital Management, LLC v. FTC, which held that Section 13(b) of the FTC Act does not authorize the agency to seek monetary relief directly through federal courts. Since that ruling, lawmakers and consumer advocates have argued that the FTC’s enforcement powers have been significantly weakened.
Supporters of the bill note that before the 2021 decision, the FTC recovered more than US$11 billion for consumers over a five-year period. Since the ruling, consumer fraud losses have continued to rise while the agency’s ability to obtain refunds for victims has been substantially reduced.
The measure has previously received bipartisan support in the House of Representatives but has not yet become law. Its sponsors hope renewed congressional attention to the growing number of scams targeting Americans will improve its chances of passage.
The proposal comes as consumer fraud continues to evolve, with criminals increasingly using artificial intelligence, impersonation scams, online marketplaces and sophisticated cyber schemes to target victims. Consumer protection advocates argue that restoring the FTC’s recovery authority would strengthen enforcement efforts while helping victims recover at least some of their financial losses.
If enacted, the Consumer Protection and Recovery Act would mark a significant expansion of the FTC’s enforcement powers, allowing the agency to once again pursue monetary remedies against individuals and businesses found to have violated federal consumer protection laws. Supporters believe the legislation would not only improve compensation for victims but also serve as a stronger deterrent against future scams and fraudulent schemes.
