FTC Under Fire for Regulatory Overreach, Calls for Congressional Action Intensify

The Federal Trade Commission (FTC) is facing criticism for prioritizing its political agenda over consumer protection and the rule of law. Critics argue that the agency's recent policy shifts could lead to prolonged legal battles, leaving consumers vulnerable. The responsibility now lies with Congress, which has the authority to reform the FTC, an agency established over a century ago. The controversy began two years ago when the FTC, led by Chairwoman Lina Khan, abandoned its consumer-focused antitrust enforcement policy. The new standards allow the agency to target businesses based on vague criteria such as being "coercive" or "exploitative." This shift has prompted significant resignations within the agency, including over 100 career attorneys and a presidentially appointed commissioner, who have expressed concerns over the anti-business and anti-consumer implications of the new policies. Recent court rulings, including SEC v. Jarkesy, have challenged the administrative state’s reliance on in-house judges, while cases like Loper Bright Enterprises v. Raimondo have questioned the Chevron doctrine that allowed agencies to interpret ambiguous laws. These developments present Congress with a critical opportunity to reassess the FTC's rule-making powers and ensure they align with legislative intent and judicial standards. Former lawmakers Jason Altmire and Bob Barr emphasize the urgency for Congress to act, suggesting that it should consider repealing or defunding regulations that exceed its original scope. The call for reform reflects a growing concern over the FTC's direction and its impact on consumers and businesses alike.