FTC

Subscribe to FTC via RSS

On March 18, President Trump fired the two Democratic commissioners of the Federal Trade Commission (FTC). The removals of Alvaro Bedoya and Rebecca Kelly Slaughter are the latest in a series of executive actions that will limit the agency’s independence. 

They also present a direct challenge to Humphrey’s Executor v. United States, the Supreme Court’s 1935 decision holding that Congress may limit the president’s authority to remove members of the FTC without good cause. Both Slaughter and Bedoya stated that they had been “illegally fired.” If the commissioners challenge their terminations, the Supreme Court may be forced to confront the question of whether Humphrey’s Executor should be overruled—an issue the Court has avoided in several recent cases that significantly limited the decision’s application to other agencies, without overruling it. Continue Reading Trump Fires Democratic FTC Commissioners, Setting Up a Direct Challenge to Humphrey’s Executor

On March 10, the Department of Justice (DOJ) moved to drop a lawsuit filed on behalf of the Federal Trade Commission (FTC) against Xlear, which marketed a line of over-the-counter saline nasal spray products touted to treat and prevent COVID-19 and similar viruses.

The DOJ filed the lawsuit in October 2021, alleging that Xlear violated the FTC Act and the COVID-19 Consumer Protection Act by disseminating claims that the FTC argued were false and misleading.

Despite a July 2020 warning from the FTC that the company’s COVID-19-related claims violated the FTC Act, Xlear continued to make various COVID-19 treatment and prevention claims, including that in vitro studies conclude that their sinus “nasal spray is ‘an effective…and replicable means to deactivate SARS-CoV-2…to an undetectable amount of infectious virus.’”Continue Reading DOJ Dismisses Lawsuit Over COVID Nasal Spray False Advertising

New York attorney general Leticia James is the latest state-level actor to respond to the Trump administration’s efforts to shrink federal consumer protection agencies. James has championed the FAIR Business Practices Act, a bill introduced in the New York state legislature aimed at expanding the New York consumer protection statutes to include unfair and abusive practices.

According to James, the FAIR Business Practices Act would “close loopholes” in New York’s current consumer protection scheme and enhance the enforcement capabilities of the Office of the Attorney General. If enacted, the bill would enable the attorney general to pursue civil penalties and restitution for violations of the act, such as:Continue Reading New York Seeks to Beef up Consumer Protection Framework

In January the Eleventh Circuit vacated the Federal Communication Commission’s (FCC) one-to-one consent rule, finding that the agency exceeded its statutory authority under the Telephone Consumer Protection Act (TCPA). The latest development is that on February 19, 2025, the National Consumers League and some small business owners filed a motion to intervene in the case…

Join us as we spotlight select chapters of Venable’s popular Advertising Law Tool Kit, which helps marketing teams navigate their organization’s legal risk. Click here to download the entire Tool Kit.

Commercial email marketing poses private litigation risks and regulatory hurdles that should be considered before launching any campaign to ensure compliance. The…

We’ve written previously about the Trump administration’s effort to increase his influence over independent agencies such as the FTC and to review regulations promulgated by these agencies. The White House is also reportedly directing agencies, including the FTC, to prepare for reductions in force. But, given these developments, what will the FTC under Chairman Ferguson prioritize for the Bureau of Consumer Protection? Some clues and some speculation follow.

On February 26, Chairman Ferguson announced the creation of a task force including staff from the Bureau of Consumer Protection, Bureau of Competition, Bureau of Economics, and the Office of Policy Planning to focus on protecting consumers in their role as workers, which are similar to previously proposed efforts under the prior administration. The directive to the FTC staff identifies conduct that should be part of the effort, including:

  • Deceptive job advertising
  • Deceptive business opportunities
  • Misleading franchise offerings
  • Job scams

Continue Reading Some Hints About and Clues to the FTC’s Consumer Protection Priorities

Last week, a security services company and several trade groups filed their merits brief in the U.S. Court of Appeals for the Eighth Circuit challenging the Federal Trade Commission’s (FTC) newly adopted Negative Option Rule, also called Click-to-Cancel. The rule introduces a host of requirements for companies selling goods or services with a negative option feature in both consumer and B2B transactions, as we outlined last year. Notably, a negative option seller must make cancellation as simple as signing up, including providing an easy online cancellation method if consumers signed up online.

The rule went partially into effect on January 14, 2025, with the prohibition on misrepresentations of material facts relating to the promotion or offering for sale of any good or service with a negative option. The remainder of the rule covering consent and cancellation requirements takes effect in May 2025.

The court previously denied petitioners’ request to stay the rule from taking effect pending litigation.Continue Reading FTC’s “Click-to-Cancel” Rule Challenged by Industry in the Eighth Circuit

With much of the administrative state in turmoil, the Federal Trade Commission (FTC) appears to be holding steady and continuing to litigate its current cases.

We previously discussed the FTC’s lawsuit against Grand Canyon University (GCU) and its president, in particular the court’s granting of GCU’s motion to dismiss, finding that the FTC could not bring claims against GCU because it was a nonprofit organization and not a “person, partnership, or corporation” within the FTC’s jurisdiction.

The court held that the FTC could bring claims against GCU only if it could establish that GCU was a “corporation,” which the act defines as either organized to carry on business for the profit of its “members” or organized to carry on business for its “own” profit. The court found the FTC had not pleaded facts to satisfy this burden, but gave the FTC leave to amend its complaint.Continue Reading FTC Forges Ahead in Court Battle on FTC Act’s Scope Over Nonprofit Institutions (And Loses)

This week, the U.S. Court of Appeals for the Fifth Circuit vacated the Federal Trade Commission’s (FTC) Combatting Auto Retail Scams (CARS) rule. Industry groups had challenged the rule, arguing that:

  • The FTC violated Section 18(b) of the FTC Act by failing to issue an advance notice of proposed rulemaking (ANPRM) before promulgating the CARS rule.
  • The FTC arbitrarily and capriciously failed to articulate a reasoned basis for the rule.
  • The FTC’s cost-benefit analysis was arbitrary and capricious.

The decision highlights the Fifth Circuit’s hostility to the “Administrative State” and the two different rulemaking schemes under which the FTC operates.Continue Reading The Fifth Circuit Slams the Brakes and Vacates FTC CARS Rule

With the Biden-Harris administration and Federal Trade Commission (FTC) Chair Lina Khan tenures now completed, we take a look back at the mountain of rulemaking carried out over the last few years. Khan’s ambitious agenda led to an avalanche of new and amended rules. All eyes will now be on Commissioner Andrew Ferguson, who is set to become the new chair, and how he will steer the agency going forward.

Under Khan’s leadership, the FTC issued major rules that attempted to regulate swaths of the U.S. economy. Some rules failed to become effective, as they faced judicial setbacks, such as the Non-Compete Rule, which was set aside by a federal court and the CARS Rule that the FTC stayed after litigation commenced. Similarly, the Negative Option Rule is in the midst of a court challenge that may halt its implementation. Meanwhile, the Unfair or Deceptive Fees Rule was substantially narrowed during the rulemaking process.Continue Reading Welcome to the New Federal Trade Commission! But First, a Look Back at FTC Rulemaking