Top 10 Examples Of The FTC Losing Its Way
WASHINGTON – Two years to the day since Chair Lina Khan took over the Federal Trade Commission (FTC), the Competitiveness Coalition today outlined the top 10 ways the Commission has lost its way.
“On Chair Khan’s watch, the FTC has lost any veneer of independence or bipartisanship and has devolved into a tool weaponized against American enterprise and innovation,” stated Scott Brown, chair of the Competitiveness Coalition. “Khan’s actions have hampered our global competitiveness and thrown a wet blanket on an economy still recovering post-pandemic. What a long, sad two years it has been for this once proud agency that has been derailed by its leader. It’s time for a change, a change for the better.”
- The FTC is no longer bipartisan: Following the resignation of the last remaining GOP commissioner, Christine Wilson, the FTC is now entirely comprised of members of one political party. Wilson shared her concerns about “the honesty and integrity of Ms. Khan and her senior FTC leadership” in a searing Wall Street Journal op-ed, arguing the FTC chair disregarded “the rule of law and due process.”
- Senior staff attorneys at the Commission have departed “at the fastest rate in years”: The FTC has suffered the highest number of senior staff attorneys departures since 2000 – nearly 100 attorneys. Staff have described Khan’s leadership style as “tyrannical” and “abusive.”
- Employee morale has plummeted: Previously ranked second on the “Best Places to Work in the Federal Government,” the FTC has plummeted to number 22 on the list. Employee satisfaction score has also dipped below 65% – a precipitous 25% drop in a single year.
- Khan is facing calls for her resignation: Recently, The Washington Times editorial board called for Khan’s resignation, arguing she has “continually abused the power of the chairman’s office.”
- The FTC is being investigated by the House Judiciary Committee: Last month, the Committee launched an investigation into questions about deleting key documents around a controversial rule banning noncompete clauses for workers.
- It’s also being investigated by the House Oversight Committee: Chairman Jim Comer (R-KY) launched an investigation into Khan citing abuses of power, disregard for the rule of law and federal ethics standards.
- Its own watchdog – the FTC Office of Inspector General (OIG) – has put the Commission on notice: In a 2022 report, the FTC OIG stated the commission “lacks a comprehensive system of controls” on its use of unpaid consultants, a tactic to expand the size and reach of the government without paying for it.
- It’s facing criticism for colluding with European regulators to handcuff U.S. businesses: The “cash strapped” agency – which asked for a nearly 40% raise – is sending staff to Brussels for six months to help implement the Digital Markets Act. The Wall Street Journal editorial board hammered Khan for “working with the E.U. to hamstring U.S. companies.”
- Its greatest cheerleaders either lost influence or left office: Antitrust self-proclaimed “antitrust reform champion” Rep. David Cicilline (D-RI) resigned earlier this year and his sidekick, Rep. Ken Buck (R-CO), was passed over to lead the House Judiciary Antitrust subcommittee.
- Khan’s stamp of approval on controversial antitrust legislation last year resulted in zero, zip, zilch, nada: Congress failed to pass any substantive antitrust legislation that enjoyed the backing and constant support from Khan.
For more than a year, the Competitiveness Coalition has been sounding the alarm on the FTC’s egregious overreach and concerning actions. For more information on the Coalition’s work on this front, please visit competitivenesscoalition.com. Members of the press can contact the coalition at press@competitivenesscoalition.com.
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The Competitiveness Coalition is a first-of-its-kind group educating the public and advocating for policies that put consumers first while fostering innovation and attracting new investment.