Federal Trade Commission v. Commerce Planet, Inc.
Opinion
Lead Opinion
Watford, J.
The Federal Trade Commission (FTC) sued Commerce Planet, Inc., and three of *597 its top officers for violating § 5(a) of the FTC Act, which prohibits unfair or deceptive business practices. 15 U.S.C. § 45 (a). The company and two of the individual defendants settled with the FTC. The remaining defendant, appellant Charles Gu-gliuzza, elected to stand trial. After a 16-day bench trial, the district court found that Commerce Planet had violated § 5(a) and held Gugliuzza, the company’s former president, personally liable for the company’s unlawful conduct. The court permanently enjoined Gugliuzza from engaging in similar misconduct and ordered him to pay $18.2 million in restitution.
In a memorandum disposition filed together with this opinion, we reject Gugliuz-za’s challenges to the district court’s liability ruling. We address here his arguments contesting the validity of the restitution award.
I
The FTC brought suit to enjoin Commerce Planet’s deceptive marketing of a product called “OnlineSupplier.” The company touted OnlineSupplier as a website-hosting service that would enable consumers to make money by selling products online. The company charged a membership…