A federal judge said the Federal Trade Commission can take enforcement actions against Internet lenders linked to tribes.

The Federal Trade Commission Act doesn't mention tribes or their entities. But Judge Gloria M. Navarro determined that it is a law of "general applicability" that covers Indian Country.

In the March 9 decision, Navarro said the FTC Act "grants the FTC authority to regulate arms of Indian tribes, their employees, and their contractors."

The FTC called the decision a "significant victory" in its efforts to regulate Internet lenders. The agency says the companies are violating federal consumer protection laws.

"This ruling makes it crystal clear that the FTC’s consumer protection laws apply to businesses that are affiliated with tribes,” Jessica Rich, the director of the agency’s Bureau of Consumer Protection, said in a press release. “It’s a strong signal to deceptive payday lenders that their days of hiding behind a tribal affiliation are over.”

Turtle Talk has posted documents from the case, FTC v. AMG. The defendants include Internet lenders operated by the Miami Nation of Oklahoma, the Modoc Tribe of Oklahoma and the Santee Sioux Tribe of Nebraska.

Get the Story:
Dealbook: Judge Sides with F.T.C. in Payday Lending Case (The New York Times 3/19)
Judge Rules FTC Has Authority Over Indian Tribe Lending (The Legal Times 3/19)

Related Stories:
Internet lenders in Indian Country under scrutiny in 21 states (3/19)
Law Article: Tribal lenders win a partial victory in FTC litigation (3/13)
FTC files lawsuit against tribal-affiliated payday lending firms (4/2)