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US FTC firings could put consumer rulings in legal limbo
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US FTC firings could put consumer rulings in legal limbo
Mar 20, 2025 10:28 AM

*

Firing 2 Democratic commissioners could lead to court

challenges

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FTC would have soon had Republican majority even without

firings

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Spokesperson says FTC will pursue cases against Big Tech

By Jody Godoy

NEW YORK, March 20 (Reuters) - President Donald Trump's

firing of two commissioners at the Federal Trade Commission puts

the U.S. consumer protection in uncharted waters, its actions

are in legal limbo until courts clarify the status of the fired

commissioners, experts said.

Firing Alvaro Bedoya and Rebecca Kelly Slaughter, both

Democrats, handed Trump's FTC Chairman, Andrew Ferguson, an

immediate Republican majority.

But using that majority to take action could run into legal

hurdles, said Maureen Ohlhausen, a Republican former

commissioner who served as acting FTC chair during part of

Trump's first term. If a court reinstates Bedoya and Slaughter,

the agency could be required to review any votes that occurred

in their absence, she said.

"We are certainly in uncharted waters," Ohlhausen said.

If a trial court agrees with the Trump administration, "that

situation could present the most uncertainty for business," said

Rahul Rao, a partner at White & Case who worked at the FTC from

2022 to 2025. A ruling for Trump would go against existing legal

precedent, and inevitably end up before the U.S. Supreme Court,

in a process that could take years, Rao said.

FTC Director of Public Affairs Joe Simonson said on

Wednesday the removal of the two commissioners had not changed

the agency's approach. Ferguson has said before that he plans to

keep pursuing cases against Amazon.com ( AMZN ) and Meta

Platforms ( META ).

"In terms of holding Big Tech accountable, we are moving

full steam ahead," Simonson said. "That was true before and it

is still true."

Republicans would have soon gained a majority without

the firings. Mark Meador, who Trump nominated to the commission

in January, is being considered by the Senate. His confirmation

would give Republicans a majority -- regardless of whether or

not Bedoya and Slaughter are reinstated.

Under the law, FTC commissioners can only be removed for

good cause, such as neglecting their duties. The Trump

administration has taken the position that a 1935 ruling

upholding that law does not apply to the FTC as it exists today.

One court considering the FTC's case against Asbury

Automotive Group ( ABG ) has already asked the agency to explain

whether the firings affect its case.

A lack of bipartisanship could also affect how judges view

future cases.

Before the firings, Judge Douglas Ginsburg, who sits on the

federal appeals court in Washington, said at an event in

February that losing dissenting voices on the commission would

be a loss for judges who consider the FTC's cases.

"If there is a dissent from the agency decision, it's the

first place you look" when deciding a case, Ginsburg said at the

event in Washington sponsored by George Mason University.

Actions the FTC pursued under former Chair Lina Khan had a

better track record in court when they were unanimously

supported by the full bipartisan commission, Ohlhausen wrote in

an article last year.

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