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U.S. Code as of:
01/19/04
Section 57b. Civil actions for violations of rules and cease and desist orders respecting unfair or deceptive acts or practices
(a) Suits by Commission against persons, partnerships, or
corporations; jurisdiction; relief for dishonest or fraudulent
acts
(1) If any person, partnership, or corporation violates any rule
under this subchapter respecting unfair or deceptive acts or
practices (other than an interpretive rule, or a rule violation of
which the Commission has provided is not an unfair or deceptive act
or practice in violation of section 45(a) of this title), then the
Commission may commence a civil action against such person,
partnership, or corporation for relief under subsection (b) of this
section in a United States district court or in any court of
competent jurisdiction of a State.
(2) If any person, partnership, or corporation engages in any
unfair or deceptive act or practice (within the meaning of section
45(a)(1) of this title) with respect to which the Commission has
issued a final cease and desist order which is applicable to such
person, partnership, or corporation, then the Commission may
commence a civil action against such person, partnership, or
corporation in a United States district court or in any court of
competent jurisdiction of a State. If the Commission satisfies the
court that the act or practice to which the cease and desist order
relates is one which a reasonable man would have known under the
circumstances was dishonest or fraudulent, the court may grant
relief under subsection (b) of this section.
(b) Nature of relief available
The court in an action under subsection (a) of this section shall
have jurisdiction to grant such relief as the court finds necessary
to redress injury to consumers or other persons, partnerships, and
corporations resulting from the rule violation or the unfair or
deceptive act or practice, as the case may be. Such relief may
include, but shall not be limited to, rescission or reformation of
contracts, the refund of money or return of property, the payment
of damages, and public notification respecting the rule violation
or the unfair or deceptive act or practice, as the case may be;
except that nothing in this subsection is intended to authorize the
imposition of any exemplary or punitive damages.
(c) Conclusiveness of findings of Commission in cease and desist
proceedings; notice of judicial proceedings to injured persons,
etc.
(1) If (A) a cease and desist order issued under section 45(b) of
this title has become final under section 45(g) of this title with
respect to any person's, partnership's, or corporation's rule
violation or unfair or deceptive act or practice, and (B) an action
under this section is brought with respect to such person's,
partnership's, or corporation's rule violation or act or practice,
then the findings of the Commission as to the material facts in the
proceeding under section 45(b) of this title with respect to such
person's, partnership's, or corporation's rule violation or act or
practice, shall be conclusive unless (i) the terms of such cease
and desist order expressly provide that the Commission's findings
shall not be conclusive, or (ii) the order became final by reason
of section 45(g)(1) of this title, in which case such finding shall
be conclusive if supported by evidence.
(2) The court shall cause notice of an action under this section
to be given in a manner which is reasonably calculated, under all
of the circumstances, to apprise the persons, partnerships, and
corporations allegedly injured by the defendant's rule violation or
act or practice of the pendency of such action. Such notice may, in
the discretion of the court, be given by publication.
(d) Time for bringing of actions
No action may be brought by the Commission under this section
more than 3 years after the rule violation to which an action under
subsection (a)(1) of this section relates, or the unfair or
deceptive act or practice to which an action under subsection
(a)(2) of this section relates; except that if a cease and desist
order with respect to any person's, partnership's, or corporation's
rule violation or unfair or deceptive act or practice has become
final and such order was issued in a proceeding under section 45(b)
of this title which was commenced not later than 3 years after the
rule violation or act or practice occurred, a civil action may be
commenced under this section against such person, partnership, or
corporation at any time before the expiration of one year after
such order becomes final.
(e) Availability of additional Federal or State remedies; other
authority of Commission unaffected
Remedies provided in this section are in addition to, and not in
lieu of, any other remedy or right of action provided by State or
Federal law. Nothing in this section shall be construed to affect
any authority of the Commission under any other provision of law.
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