Universal Processing Services of Wisconsin, LLC v. Federal Trade Commission

The Federal Trade Commission Act (the “FTC Act”) authorizes the Federal Trade Commission (the “Commission”) to bring suit “to enjoin” a violation of the Act. 15 U.S.C. § 53(b). The questions presented are:

1. Can a passive service provider found liable solely for a violation of the Telemarketing Sales Rule, 16 C.F.R. § 310.3(b), be held jointly and severally liable for the bad acts of common enterprise co-defendants who violated the FTC Act, 15 U.S.C. § 53(b), where, as other Circuit Courts of Appeals have held consistently, such a punitive remedy must be predicated upon a finding of interrelation or control (a “common enterprise”) between defendants that committed the underlying FTC Act violations?

2. Whether the Federal Trade Commission violated Universal’s due process rights by failing to provide prior warning that it would seek joint and several liability or that such a penalty could apply based on an alleged violation of the Telemarketing Sales Rule?