On May 15, Federal Trade Commission (FTC) chairman Andrew Ferguson testified before the House Appropriations Committee in support of the FTC’s budget request. His testimony provides insight into the agency’s downsizing and its strategic enforcement priorities moving forward.

Ferguson reported that the FTC is implementing a 10% reduction in its workforce, bringing its headcount to approximately 1,100 employees—the lowest level in a decade. This decision follows the departure of 94 employees earlier in the year, which left the agency with 1,221 full-time staff. Ferguson testified that these measures are essential for aligning the agency’s resources with its current budget and emphasized a return to the FTC’s foundational mission: enforcing laws as written, rather than creating new regulations and policy.

Despite the reductions, Ferguson expressed confidence that the FTC will effectively fulfill its mission of protecting consumers and promoting competition. He highlighted several key consumer protection areas the FTC will prioritize:

Deceptive Fees, Billing, and Cancellation Practices

Ferguson emphasized that the FTC is cracking down on businesses that trap consumers into subscriptions by making it needlessly difficult to cancel services. Just this past April, the agency took action against Uber for alleged deceptive billing and cancellation practices.

Ferguson also highlighted the FTC’s continued pursuit of claims under ROSCA. Notably, he made no mention of the FTC’s Click-to-Cancel rule. Because the FTC recently deferred the compliance deadline for the rule, and because Ferguson has confirmed the FTC’s prioritization of law enforcement over rulemaking, this could be an interesting issue to monitor in the coming weeks.

Ferguson noted that the FTC’s enforcement efforts also extend beyond subscriptions to address deceptive fees in other consumer markets, including ticketing services and noted the agency’s new rule on Unfair or Deceptive Fees, which was effective May 12, 2025.

Robocall Crackdowns

Ferguson outlined the FTC’s various victories against robocall fraud in recent years, highlighting Operation Stop Scam Calls, which brought 180 actions against illegal telemarketing operations, including robocallers, lead generators, and VoIP providers. The FTC has collected almost $400 million in civil penalties from these violators, and FTC robocall-related complaints have dropped by 60% since 2021. While Ferguson touted the FTC’s successful record, he promised to maintain this area as a key priority going forward.

Protecting the Elderly, Servicemembers, and Veterans

Ferguson stated that protecting older consumers remains a top priority. With scams targeting seniors on the rise—from investment schemes to impersonator fraud—the FTC is taking a targeted approach to enforcement and education. The chairman pointed to the agency’s longstanding work in this space, including consumer education campaigns and civil enforcement actions against bad actors that prey on the elderly. Ferguson also identified combating fraud targeted at servicemembers as a top priority for the FTC and highlighted some of the agency’s past actions in that area.

Health-Related and Financial Misconduct

Ferguson noted that the FTC has actively enforced the Opioid Addiction Recovery Fraud Prevention Act (OARFPA) to combat deceptive claims targeting Americans with substance use disorders. Settlements in recent years have resulted in millions of dollars in judgments and penalties. In January the FTC filed an OARFPA action against Evoke Wellness for allegedly using deceptive Google ads and telemarketing to mislead consumers.

Ferguson mentioned one other case the FTC had brought in the health space in January, involving a stem cell clinic, but did not identify health claims as a top priority of his administration. The agency also has dropped several cases involving allegations of deception for COVID cures and prevention.

Ferguson also said the FTC had brought 24 cases in recent years involving alleged false promises across a variety of financial products, as well as debt collection. He did not indicate whether the agency would increase its activity in this area, given the changes that have occurred at the CFPB.

AI and Emerging Tech Oversight

Ferguson also spoke at length about the rapid emergence of artificial intelligence technology. While he praised AI for providing significant opportunities for consumers, workers, and the economy, he also emphasized that it can be used by bad actors to scam consumers. Through “Operation AI Comply,” the FTC targeted false claims about AI tools, including suits against DoNotPay and Rytr, and a recently issued proposed order against Workado for deceptive marketing and inflated promises regarding AI-based products.

Children’s Privacy and Digital Harms

The FTC will also be prioritizing child safety online. On June 4, 2025, the agency will host a workshop, “The Attention Economy: How Big Tech Firms Exploit Children and Hurt Families,” to explore how digital platforms are designed to capture and hold children’s attention. Panelists are expected to discuss potential regulatory responses, including enhanced age verification tools and stronger parental consent mechanisms.

Made in USA Claims

Ferguson reaffirmed the FTC’s commitment to enforcing the Made in USA Labeling Rule, which prohibits deceptive claims that products are made in the United States. He noted that the agency has imposed millions of dollars in penalties on companies that falsely label foreign-made goods as “Made in USA.” The FTC continues to prioritize this enforcement to ensure that American consumers and honest domestic manufacturers are not misled by deceptive marketing.

Workers and Small Business

Ferguson emphasized that American workers and small businesses are not just participants in the economy—they are consumers as well. To that end, he said, the FTC is adopting a holistic strategy that leverages both enforcement and advocacy to protect these groups from unfair, deceptive, and anticompetitive practices. As part of this initiative, the agency recently launched a cross-agency Labor Task Force that brings together resources from across its bureaus and offices. The task force is charged with identifying and prosecuting unlawful conduct in labor markets, including deceptive employment practices and anticompetitive restrictions that harm workers. According to Ferguson, the task force’s work is already well under way.

Notably absent from the chairman’s testimony was any request to Congress for restoration of the agency’s ability to obtain equitable monetary relief for violations of Section 5 of the FTC Act.

Ferguson’s testimony makes clear that, even with reduced staffing and budget constraints, the FTC remains committed to a robust enforcement agenda. As the FTC continues to prioritize enforcement over new rulemaking, businesses should take note: compliance with existing laws is more important than ever.

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