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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.