Supreme Court of the United States

In the context of the beverage and dietary supplement industry, the Supreme Court of the United States plays a critical role in defining the boundaries of regulatory enforcement power.

A landmark ruling by the Court in AMG Capital Management v. FTC significantly limited the ftc’s ability to easily seek equitable monetary relief under Section 13(b) of the FTC Act. This judicial decision forced the FTC to drastically shift its enforcement strategy against deceptive marketing and unsubstantiated health claims. In response to the ruling, the FTC pivoted to issuing notices-of-penalty-offenses to hundreds of companies, a legal mechanism designed to establish “actual knowledge” of deceptive conduct and bypass the hurdles created by the Supreme Court’s decision, allowing the agency to seek immediate and severe civil penalties.