United States Second Circuit

The district court's damages order that was related to defendant-storefronts' violation of a stipulated judgment and injunction is vacated and remanded, where: 1) plaintiff-FTC filed a motion for contempt against defendant, arguing that it was entitled to a presumption of consumer reliance on defendants' representations with respect to store credit and refund policy, and sought an amount equal to defendants' gross receipts in contempt damages; 2) the Court agrees with the FTC and adopts a presumption of consumer reliance in FTC civil contempt actions; and 3) on remand, the district court must consider whether the FTC has demonstrated that it is entitled to a presumption of consumer reliance, and if so, the defendants' gross receipts should be used as a baseline for calculating consumers' actual loss.

Appellate Information

• Decided 08/12/2014
• Published 08/12/2014

Judges

• HALL

Court

• United States Second Circuit

Counsel