FTC gets new power to force refunds and cancel unfair contracts

What it does

This bill expands the Federal Trade Commission's power to seek and win court orders against companies that violate consumer protection laws. Specifically, it allows the FTC to demand that courts order companies to pay back money to harmed consumers (restitution), cancel or fix unfair contracts, return property, and disgorge (surrender) profits illegally obtained—remedies the FTC previously had limited ability to pursue. The bill applies retroactively to violations occurring within the past 10 years and to all pending and future cases.

Why we flagged it

The bill's sole operative purpose is to broaden the FTC's remedial toolkit in enforcement actions—adding restitution, disgorgement, and contract reformation to the agency's existing injunction authority. It is a straightforward expansion of regulatory power in favor of consumer protection.

What the text implies

• The 10-year lookback window, combined with the exclusion of time spent outside the US, may allow the FTC to pursue older violations against individuals or entities with international ties, potentially reviving stale claims.
• Retroactive application to pending cases means companies currently defending FTC suits face new remedial exposure they did not anticipate when litigation began, creating settlement pressure.
• Disgorgement authority—forcing return of all profits from a violation—may exceed traditional damages and create incentives for aggressive FTC enforcement even in borderline cases.
• The bill does not cap restitution or disgorgement amounts, leaving courts with broad discretion to order large payouts, which may deter some business conduct but also create unpredictability.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Ordinary consumers gain stronger legal remedies when companies cheat them—the FTC can now force refunds, contract cancellations, and return of property directly, rather than relying solely on fines. This shifts power from corporations back toward harmed individuals and the agency tasked with protecting them.

Who stands to gain

• consumers harmed by unfair or deceptive practices
• state attorneys general (who may coordinate with FTC)

Named in the bill

Federal Trade Commission (FTC), Federal Trade Commission Act (Section 13, Section 16)

Where it stands

2 cosponsors: 2 Democrats.

• Jul 30, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jul 30, 2026 — Referred to House Committee on the Judiciary and House Committee on Energy and Commerce · Congress.gov: “Referred to the Committee on Energy and Commerce, and in addition to the Committee on the Judiciary, for a…”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.