House Judiciary Committee Calls Out FTC Leadership’s Bad Practices

Need some encouragement that official Washington is not broken when it comes to checks and balances?

Exhibit A is a February 22 report by the House Judiciary Committee shining a bright spotlight on broad and deep concerns that career civil servants at the Federal Trade Commission (FTC) have with its audacious, progressive Chair, Lina Khan. Civil servants, overwhelming Democrats, and House Republicans led by Committee Chair Jim Jordan may seem like strange bedfellows, but they both have the public good in mind.

The FTC is not supposed to be a place of drama and turmoil. But it now is.

Mainly comprised of attorneys, the FTC is responsible for antitrust enforcement and consumer protection. It is to analyze cases for violations of existing law and, where necessary, bring enforcement actions. Its decisions about what to litigate, negotiate, and pass on require careful attention to the law and methodical preparation.

It is not a laboratory for experimentation with novel, even wild enforcement theories and political plays. Chair Khan, a national champion of this approach, caught the attention of Senator Elizabeth Warren, who has strongly supported her nomination and installation to the FTC.

The report is devastating in its range and thoroughness of troubling issues discussed, including abuse of power, waste of resources, and the perpetuation of a climate of fear.

Notable staff comments include, “outside influences have an undue impact on priorities, investigation management, and enforcement decisions … (the FTC) should never make an enforcement-related decision for the sake of PR” …

“Simply put, it sometimes feels like we are running down marginal theories given the facts of a specific case when more problematic deals may go unreviewed” …

“I’m not sure being successful (or doing things well) is a shared goal, as the chair wants to show that we can’t meet our mission mandate without legislative change”….

“Many of the Chair’s and, to some extent the Director of the Bureau of Consumer Protection’s stated objectives sound more like progressive buzzwords than actual direction.”

The report merits a careful review from all policymakers concerned about the FTC and a smooth functioning government. It should also be the basis for a House Judiciary Committee hearing. The full report can be read here.