On February 26, new Federal Trade Commission (FTC) Chair Andrew Fergusonannouncedthe creation of the Joint Labor Task Force, continuing former Chair Lina Khan's departure from what is known as the consumer welfare standard. Congressestablished the FTCin 1914 to prevent unfair competition and deceptive business practices. This has primarily meant "protecting Americans in their role asconsumers," according to Ferguson. The FTC enforces theClayton Antitrust Act, which outlawed price discrimination between customers, exclusive dealing, interlocking directorates, and mergers or acquisitions that "substantially reduce competition." But Khan was more interested in Americans' role as producers than consumers. In 2022 she signed amemorandum of understanding(MOU) with the National Labor Relations Board to "protect workers against unfair methods of competition, unfair or deceptive acts or practices, and unfair labor practices," such as restrictive contract provisions. In August 2023, Khan signed a similarMOUwith the Department of Labor recognizing both agencies' shared commitment to protecting workers from deceptive earnings claims, restrictive noncompete and nondisclosure contracts, and the "impact of labor market concentration." Alden Abbott, the FTC's general counsel from 2018–2021, opposed the MOUs. Abbottarguedin September 2023 that labor market oversight is "far-removed from the FTC's statutory mandate to focus on combating impediments to competition and consumer protection [and] would reduce the funding available to attack fraudulent and clearly anticompetitive acts." Khan's FTC went further, attempting tobannoncompete agreements in April 2024, describing them as an unfair method of competition in violation of the FTC Act. Fergusondissentedon legal grounds, arguing that the Commission does not possess the power "to declare categorically unlawful a species of contract that was lawful when the Federal Trade Commission Act was adopted." Though Ferguson opposed banning noncompetes, he stillidentifiesthem as one of 12 anticompetitive labor practices under FTC jurisdiction. Fergusonhas directedhis new Joint Labor Task Force to "prioritize investigation and prosecution" of such practices and to advocate regulatory and legislative changes that would address them. Ferguson's endorsement of the2023 joint merger guidelines, along with hishostility tothe tech industry andsupportfor enforcing the anti–price discrimination Robinson-Patman Act, all suggest a continuation of Khan's activist antitrust ideology. The Joint Labor Task Force is yet more evidence. The postTrump's FTC Chair Is Continuing To Push Lina Khan's Antitrust Ideologyappeared first onReason.com.
