Federal Trade Commission's Consumer Redress Activities

The limited success of the Federal Trade Commission (FTC) in its efforts to help consumers obtain redress for economic injury resulting from unfair or deceptive business practices is discussed. FTC's ability to obtain redress is limited by: (1) its impractical authority because of lengthy and time-consuming procedures; (2) the weak financial condition of many businesses it investigates; and (3) its internal management problems. Congress should amend the FTC Act to authorize the FTC to: (1) order redress if it determines that a reasonable person should have known that the violations were dishonest or fraudulent; (2) seek an injunction to prevent businesses from dissipating their assets to avoid redressing consumers; and (3) ensure redress cases are handled as expeditiously as possible by monitoring the implementation of its management changes designed to reduce delay and improve communication.