WASHINGTON, DC—Today, NetChoice raised concerns with the Federal Trade Commission (FTC)’s Proposed Rule to Ban Noncompete Clauses and its misreading of Section 5 of the FTC Act. While NetChoice doesn’t hold a position on noncompete clauses, we are deeply concerned with the implications of the FTC making rules in this area. The new rule would expand the agency’s remit to write labor regulations that supersede the Department of Labor and the states. The FTC tasked itself with this area of regulatory policy without any Congressional approval.
“Chair Khan is happy to ignore the law in yet another attempt to further her own authority and power, adding to a long-running list of legally tenuous actions by the FTC that do nothing to benefit consumers and waste government resources. Chair Khan treats the law and the constitution as obstacles to circumvent, rather than rules to be respected,” said Carl Szabo, NetChoice Vice President & General Counsel.
“The Department of Labor should set federal labor regulations, not the FTC. If the FTC can override the Department of Labor, Chair Khan will use her agency to write rules in almost any aspect of American society, positioning the FTC as judge, jury, and executioner for the entire US economy.”
Szabo continued: “Once again, Chair Khan is neglecting to run the FTC in accordance with its given role — to protect consumers. Instead, Khan wishes to supersize the FTC’s authority to make it more powerful than executive Departments and states.”