Tech & Innovation - March 18, 2025

Unprecedented Dismissals at the FTC: A Power Play?

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In an unusual exercise of power, President Donald Trump dismissed the two remaining Democratic commissioners at the Federal Trade Commission (FTC), Alvaro Bedoya and Rebecca Kelly Slaughter. Both commissioners have publicly voiced their concerns, calling the dismissals an illegal act that violates statutory language and Supreme Court precedent. They suggest that the move is an attempt to make the FTC more corporation-friendly, potentially compromising its role in consumer protection and competition issues.

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The Commissioners' Perspectives

Both Bedoya and Slaughter have been vocal about their dismissals. Bedoya, in a message posted on his X account, called the firing an act of corruption. Slaughter echoed this sentiment, stating that the administration clearly fears the accountability that opposition voices would provide. They both suggest that the firings are a nod to corporate power, with Bedoya stating that Trump wants the FTC to be a 'lapdog' for his golfing buddies rather than take on consumer protection and competition issues in big businesses.

The Implications of the Dismissals

The dismissals raise questions about the future direction of the FTC, particularly in areas of consumer protection and algorithmic bias, which both commissioners were known for their work on. The removal of business guidance blogs, including those explaining how AI chatbots can comply with FTC regulations, further compounds these concerns. With a Republican majority, the FTC could potentially push forward policies and enforcement actions without Democratic support.

A Break from Tradition

While it is typical for the FTC chair to resign during a change in administration, the dismissal of existing commissioners is highly unusual. This move could be seen as part of Trump's broader approach to federal workforce reform, including an executive order asserting Presidential supervision and control of the entire executive branch, including independent agencies like the FTC.

Bedoya says Trump wants the FTC to be a lapdog for his golfing buddies, rather than take on consumer protection and competition issues in big businesses.