President Trump dismissed two Democratic members of the Federal Trade Commission on Tuesday, challenging the agency’s usual independence and potentially advancing the administration’s goals.
The White House informed Democrats, Rebecca Kelly Slaughter and Alvaro Bedoya, that the president was ending their appointments, as stated by both individuals. The F.T.C., responsible for upholding consumer protection and antitrust regulations, typically consists of five members, where the president’s party holds three positions and the opposing party holds two.
Traditionally, members of the F.T.C. and comparable independent regulatory bodies enjoy protection from dismissal, as established by a 1935 Supreme Court ruling asserting that presidents cannot remove them solely due to policy disagreements. Ms. Slaughter and Mr. Bedoya indicated plans to contest Mr. Trump’s actions in court.
“Today the president unlawfully terminated my position as a federal trade commissioner, breaching clear statutory language and established Supreme Court precedent,” Ms. Slaughter, who was appointed by Mr. Trump to the F.T.C. during his first term in 2018, stated. “Why? Because I have a voice. And he fears what I might share with the American public.”
In an interview, Mr. Bedoya, who has been a commissioner for three years, expressed concerns that an F.T.C. lacking independence from the president would be vulnerable to the interests of Mr. Trump’s corporate allies.
“When people hear this news, they shouldn’t focus on me,” he remarked. “They should think about the billionaires behind the president at his inauguration.”
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These dismissals mark Mr. Trump’s ongoing efforts to assert presidential authority over independent regulators in government agencies, which were designed by Congress to operate free from direct presidential oversight. While the president appoints regulators, they have traditionally enjoyed substantial autonomy in guiding their agencies’ activities.
However, the Trump administration has largely disregarded these conventional safeguards.
“I am writing to inform you that you have been terminated from the Federal Trade Commission, effective immediately,” read a letter sent to one of the commissioners and reviewed by The New York Times. “Your ongoing service on the F.T.C. contradicts my administration’s objectives.”
Republican F.T.C. chairman Andrew Ferguson stated on Tuesday that the agency would persist in protecting consumers and supported Mr. Trump’s right to remove commissioners.
“President Donald J. Trump presides over the executive branch and wields all the executive power of our government,” Mr. Ferguson asserted. “I have complete confidence in his constitutional authority to remove commissioners, which is essential for ensuring democratic accountability in our government.”
A spokesperson for the White House did not respond promptly to a request for comment.
These dismissals came after an executive order from Mr. Trump last month aimed at extending his power over the F.T.C., the Securities and Exchange Commission, the Federal Communications Commission, and the National Labor Relations Board.
The order mandated independent agencies to present their proposed regulations to the White House for evaluation, claimed the authority to prevent these agencies from allocating funds for endeavors or initiatives contradicting presidential goals, and asserted that they must adhere to the president’s and the Justice Department’s legal interpretations as binding.
In January, Mr. Trump removed Gwynne A. Wilcox, a Democratic N.L.R.B. member. She initiated a lawsuit to challenge her termination, and a judge reinstated her earlier this month. The administration has appealed that decision.
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The Justice Department has ceased defending the constitutional validity of the Supreme Court’s precedent that limits the firing of regulators only for cause, per a letter from acting solicitor general Sarah M. Harris to Senator Richard J. Durbin, a Democrat from Illinois. This analysis pertains to the F.T.C., the N.L.R.B., and the Consumer Product Safety Commission, as reported by Reuters.
The letter sent to one of the F.T.C. commissioners on Tuesday reaffirmed this stance. The Supreme Court protections do not apply to “the principal officers who lead the F.T.C. today,” the letter indicated.
Rebecca Haw Allensworth, a professor at Vanderbilt Law School specializing in antitrust, noted that the F.T.C. was established as an independent entity in 1914 “on the premise that consumer protection and the various objectives of the F.T.C. are better addressed through less politically influenced means.”
“Introducing the notion of political hiring and firing undermines both the agency’s capabilities and its legitimacy as a bipartisan body,” she stated.
Corporate leaders and their advisors are carefully observing the F.T.C.’s trajectory under Mr. Ferguson, its new chair. During the Biden administration, the F.T.C. took action to prevent corporate mergers, aggressively penalized companies for lapses in user privacy, and filed a comprehensive lawsuit against Amazon for undermining small businesses. It is anticipated to challenge Meta in a trial set for April regarding the social media giant’s strategy in acquiring Instagram and WhatsApp to reinforce its dominance.
Ms. Slaughter and Mr. Bedoya have consistently endorsed measures aimed at curtailing the influence of big tech companies.
After being nominated by Mr. Trump in 2018 to fill an unexpired term on the majority-Republican commission, President Joseph R. Biden Jr. nominated Ms. Slaughter for a complete seven-year term in February 2023. Before this, she worked as chief counsel to Senator Chuck Schumer of New York, the current minority leader, focusing on telecommunications and technology legislation.
Mr. Bedoya, who previously led a technology and privacy center at Georgetown University and served as a Senate aide, joined the F.T.C. in May 2022 after being nominated by Mr. Biden.
During an interview, Mr. Bedoya shared that he learned about Mr. Trump’s decision while attending his daughter’s gymnastics class, receiving a call from Ms. Slaughter.
“He’s attempting to remove me,” Mr. Bedoya stated. “I am still an F.T.C. commissioner, and I will go to court to ensure that remains clear to everyone.”
Credit…Susan Walsh/Associated Press
Senator Amy Klobuchar, a Democrat from Minnesota, labeled the dismissals as “outrageous” and “illegal,” warning that these actions would negatively impact consumers. She pointed out that the agency’s 2023 actions against practices like hidden and junk fees returned $330 million to consumers.
“Illegally dismantling the commission will empower fraudsters and monopolists, and consumers will bear the consequences,” warned Ms. Klobuchar, who is part of the Senate Judiciary subcommittee on antitrust and consumer rights.
