Chair Scott Brown Sounds Off on FTC’s Unilateral Action to Ban Noncompetes


April 23, 2024 

Chair Scott Brown Sounds Off on FTC’s Unilateral Action to Ban Noncompetes

WASHINGTON – After the Federal Trade Commission (FTC) passed a new rule in a 3-2 party-line vote that bans businesses from including non-compete agreements in an employee’s contract, Chair Scott Brown released the following statement:

“Non-compete agreements are essential to prevent corporate espionage and ensure that competition is fair, which is, ironically, a tentpole of the FTC’s mission statement,” said Chair Scott Brown, a former Senator and Ambassador. “That the FTC is taking unilateral action to ban a commonly used business practice for the whole country, simply because they don’t like it, is cause for extreme alarm and should be rightfully challenged. Despite facing allegations of disregarding the law, Chair Lina Khan continues to use the FTC to go after American businesses. The chair is trying to kneecap the tech sector, grocery stores, sandwich shops and the fashion industry. What’s next?”

The FTC has come under fire after congressional leaders raised allegations that the commission deleted materials related to the proposed non-compete rule. Last fall, U.S. Senate Commerce Committee Ranking Member Ted Cruz (R-TX), House Judiciary Chairman Jim Jordan (R-OH), and House Oversight Chairman James Comer (R-KY) sent a bicameral letter to FTC Chair Khan demanding answers regarding the agency improperly destroying records.

“The FTC has no authority from Congress to pass such a mandate, but with the election right around the corner it seems the White House is desperate to push through any progressive regulation it can while still in power,” Brown concluded.

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