FTC V. AMG Capital Management, LLC, No. 16-17197 (9th Cir. 2018)Annotate this Case
The Ninth Circuit affirmed the district court's grant of summary judgment for the FTC, as well as a relief order, in an action alleging that a defendant's business practices violated section 5 of the Federal Trade Commission Act. Defendant offered high interest, short term payday loans through various websites that each included a Loan Note with the essential terms of the loan under the Truth in Lending Act (TILA).
The panel held that the Loan Note was deceptive because it did not accurately disclose the loan's terms. Under the circumstances, the Loan Note was likely to deceive a consumer acting reasonably. The panel also held that the district court did not abuse its its discretion when calculating the amount it ordered defendant to pay. Finally, the district court did not err by entering a permanent injunction enjoining defendant from engaging in consumer lending.