Sanctions: Ninth Circuit Decides That Consumer Loss Can Be Used To Calculate Contempt Sanctions In FTC Proceedings

Ninth Circuit Follows the View of Seventh, Tenth, and Eleventh Circuits on the Issue.

     In FTC v. EDebitPay, LLC, Case No. 11-55431 (9th Cir. Aug. 28, 2012) (published), the Ninth Circuit followed the viewpoints of the Seventh, Tenth and Eleventh Circuits in holding that district courts can consider consumer loss in calculating sanctions in contempt proceedings by the Federal Trade Commission (FTC). The result was defendants were hit by a sanctions award of $3,778,315.04 in favor of the FTC–based upon the full amount of loss by consumers in the case.