Courts Limit FTC Adjudication Power

Updated: 2026.03.24 2H ago 1 sources
A federal appeals court held that the FTC cannot resolve traditional deceptive‑advertising claims through its own administrative law judges and must bring such claims in Article III courts, relying on the Supreme Court's SEC v. Jarkesy precedent. The decision vacated a sweeping 20‑year cease‑and‑desist order against Intuit about 'free' TurboTax ads and signals tighter judicial constraints on agencies' use of administrative enforcement. — If other circuits follow, agencies will face higher litigation costs and narrower remedies, shifting how consumer protection, antitrust, and regulatory enforcement are pursued and altering the balance between private lawsuits and agency action.

Sources

Intuit Beats FTC In Court, Ending Restrictions On 'Free' TurboTax Ads
BeauHD 2026.03.24 100% relevant
5th Circuit 3–0 opinion referencing SEC v. Jarkesy, vacating the FTC's broad 20‑year prohibition on advertising goods as 'free' and noting the order's cross‑product sweep (Intuit/TurboTax case).
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