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Federal Trade Commission v. Trudeau (Trudeau II)

United States Court of Appeals for the Seventh Circuit

662 F.3d 947 (2011)

Relevant factsFree

After Trudeau (defendant) was held in civil contempt for deceptive infomercials violating a consent decree, the Seventh Circuit remanded his $37.6 million fine for a clearer explanation. On remand, the district court reinstated the same fine, this time explaining it was based on consumer loss — measured by telephone orders of the advertised book, without even counting bookstore sales. Trudeau appealed again, arguing the fine should instead be tied to his own unjust profits rather than consumer loss.

IssueFree

Whether, in civil-contempt cases, a fine may be based on the loss the contempt caused rather than on the contemnor's unjust gain.

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