Fired FTC Commissioners Fight for Jobs and Defend Agency Independence

In an unprecedented legal battle, former Federal Trade Commission (FTC) commissioners Alvaro Bedoya and Rebecca Slaughter are contesting their recent firing by President Donald Trump. The commissioners argue that their removal violates a 90-year-old Supreme Court precedent, Humphrey’s Executor v. United States, which protects FTC commissioners from being fired without cause. This case underscores the vital importance of maintaining the FTC’s bipartisan structure and its independence from political interference.

Bedoya and Slaughter emphasize that the ability of the President to remove commissioners at will threatens the stability and impartiality of key regulatory institutions beyond the FTC, including the Federal Reserve and the Securities and Exchange Commission. The commissioners are prepared to take their case all the way to the Supreme Court to uphold the legal protections that ensure these agencies can operate without fear or favor.

Amid this legal turmoil, the FTC continues its high-profile antitrust litigation against tech giants Meta and Amazon. The commissioners discuss the challenges of litigating complex cases that address market dominance, privacy violations, and consumer harm. They highlight the importance of structural remedies, such as breaking up monopolies, over behavioral compliance regimes that are harder to enforce and less effective in promoting competition.

The commissioners also address broader concerns about privacy erosion in the digital age. They argue that despite widespread data collection, public demand for privacy protections remains strong, as evidenced by user behaviors and preferences for encrypted communication platforms. They advocate for comprehensive privacy legislation that moves beyond ineffective notice-and-consent models toward data minimization and stronger regulatory oversight.

On the topic of artificial intelligence (AI), Bedoya and Slaughter caution against overhyped claims by AI companies about replacing professionals like doctors and lawyers. They stress that existing consumer protection laws apply fully to AI products, prohibiting deceptive or misleading claims. The FTC’s role includes ensuring truthful marketing and protecting consumers from scams and false promises related to AI technologies.

This conversation reveals the complex interplay between regulatory independence, enforcement of antitrust laws, privacy protection, and emerging technology governance. The commissioners’ fight to retain their positions is not just about personal jobs but about preserving the integrity and effectiveness of institutions critical to fair markets and consumer rights.

The Legal Battle Over FTC Independence

The FTC’s structure is designed to prevent domination by a single political party, ensuring bipartisan oversight of consumer protection and competition enforcement. The commissioners’ removal by President Trump, communicated via unsigned email without stated cause, challenges this framework. The 1923 Supreme Court ruling in Humphrey’s Executor affirmed that FTC commissioners can only be removed for cause, such as neglect or malfeasance. Bedoya and Slaughter’s lawsuit seeks to uphold this precedent, which has protected the agency’s independence for nearly a century.

The commissioners warn that undermining these protections could destabilize other independent agencies vital to financial markets and public trust, including the Federal Reserve and Securities and Exchange Commission. This case could set a precedent affecting the balance of power between the executive branch and independent regulatory bodies.

Antitrust Enforcement in the Tech Era

The FTC’s ongoing litigation against Meta and Amazon represents a critical front in addressing market concentration and consumer harm. The Meta case focuses on whether the company unlawfully acquired competitors like Instagram and WhatsApp to maintain monopoly power. The Amazon case alleges monopolistic practices that harm small sellers and consumers by inflating prices and penalizing sellers who offer lower prices off-platform.

Commissioners Bedoya and Slaughter advocate for structural remedies like breaking up monopolies rather than relying on complex behavioral compliance regimes, which are difficult to enforce and may not restore competitive markets effectively. They emphasize the importance of litigating these cases on their merits without political interference to ensure fair competition and protect consumer welfare.

Privacy Challenges and Consumer Demand

Despite widespread data collection and surveillance, public demand for privacy protections remains strong. The commissioners note behavioral shifts such as increased use of encrypted messaging apps and more guarded social media activity as evidence that users care deeply about privacy. They call for comprehensive privacy legislation focused on data minimization rather than ineffective notice-and-consent frameworks, which often result in user fatigue and little real control.

They also highlight the serious consequences of privacy violations on safety, security, healthcare access, and political expression, underscoring the urgency of regulatory action to protect fundamental rights in the digital age.

Regulating AI and Combating Misleading Claims

The commissioners caution against exaggerated claims by AI companies promising to replace professionals like doctors and lawyers. They stress that existing consumer protection laws fully apply to AI products, prohibiting deceptive or unfair practices. The FTC’s role includes policing misleading marketing and protecting consumers from scams and false promises related to AI technologies.

This approach ensures that innovation in AI proceeds responsibly, with accountability for truthful communication about capabilities and limitations, fostering trust and safety for users.

In summary, the ongoing legal and regulatory challenges faced by the FTC highlight the critical need for independent enforcement agencies to operate free from political interference. The commissioners’ fight to regain their positions is emblematic of broader struggles to uphold the rule of law, protect consumer rights, and ensure fair competition in an increasingly complex technological landscape.