United States v. Hopkins Dodge, Inc.
United States Court of Appeals for the Eighth Circuit
849 F.2d 311 (1988)
Hopkins Dodge and other car dealers (defendants) violated the Truth in Lending Act, and the FTC obtained a permanent injunction and then sought a civil penalty, relying on four prior FTC decisions to show the dealers were on notice their conduct was illegal. Only one of those decisions actually involved an unfair or deceptive practice, and it concerned a bait-and-switch scheme in the meat industry, unrelated to automobile financing disclosures. The district court denied the FTC's request for a civil penalty and granted summary judgment for the dealers, and the FTC appealed.
Whether the FTC may base a civil penalty under the Truth in Lending Act on a previously issued cease and desist order when that order addressed an unrelated unfair or deceptive practice in a different industry.