In a novel interpretation of the Federal Trade Commission (FTC) Act, the U.S. District Court for the District of Delaware recently held in FTC v. Shire ViroPharma that the FTC had failed to plead the facts necessary to invoke its authority to sue for permanent injunction in federal court because it did not allege an ongoing or imminent violation of the FTC Act. This ruling could broadly impact the FTC’s authority to litigate cases in federal court for past violations of the FTC Act and prevent the FTC from seeking permanent injunctive relief in federal court unless the defendant is currently violating, or is about to violate, the act.
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