Fired FTC Commissioners File Lawsuit Against Trump Over Dismissals
In a significant legal challenge, two Democratic commissioners from the Federal Trade Commission (FTC), Rebecca Kelly Slaughter and Alvaro Bedoya, have filed a lawsuit against President Donald Trump and FTC leadership. The lawsuit alleges that their removal without cause is a violation of federal law and the 90-year-old Supreme Court precedent in Humphrey's Executor v. United States (1935).
The lawsuit centers on the long-standing principle that FTC commissioners, as heads of an independent agency, have protection against removal by the President except for specific causes like inefficiency, neglect, or malfeasance. This precedent safeguards the FTC from political interference.
The Trump administration argued that because the FTC's role has expanded, commissioners should be removable at will by the President. However, a federal judge reaffirmed the binding nature of Humphrey's Executor and rejected this argument, noting that the Supreme Court has never overturned this ruling in ninety years.
Judge Timothy J. Kelly emphasized that allowing the President to remove commissioners at will would undermine independent oversight and give the executive branch unchecked power, contrary to historical and legal norms. The ruling prevents the President or FTC leadership from removing Slaughter without cause and bars interfering with her duties.
The Trump administration has indicated it intends to appeal the decision. The lawsuit thus directly challenges any modern efforts to undermine the Humphrey's Executor removal protections and reinforces the legal framework that bars at-will removal of FTC commissioners to maintain the agency’s independent function.
If the president's logic is accepted, he could fire members of the FTC at will, potentially opening the floodgates for the president to fire commissioners from other agencies. The firing of FTC commissioners Slaughter and Bedoya could have implications for other agencies, including the Federal Reserve, where the President will be able to directly control monetary policy, potentially having long-term devastating consequences for the American people.
Slaughter and Bedoya are represented by the nonprofit anti-authoritarian organization Protect Democracy. Jared Davidson, counsel at Protect Democracy, stated that the president's actions could strip Congress of its power, potentially allowing future presidents to punish enemies and reward friends.
The FTC is part of a constellation of independent agencies created by Congress, all designed in a similar fashion with similar removal protections. The Trump administration's decision to fire Slaughter and Bedoya may be to challenge the ruling in Humphrey's Executor v. United States, which could open the door for the at-will removal of other commissioners on agencies designed to operate independently.
The remaining commissioners' decisions could potentially allow the President to decide the outcome of cases currently being pursued by the FTC, such as examining privacy rules that apply to Meta and challenging how Amazon treats small businesses that operate on its platform.
Bedoya received the email informing him of his firing while at his daughter's gymnastics class, and no cause was given for his dismissal. Bedoya warns that the remaining commissioners could choose to end cases that the agency was previously pursuing.
The commissioners are seeking back pay and reinstatement to their roles on the commission. The termination letters stated the commissioners' service at the FTC was "inconsistent" with the Trump administration's priorities.
[1] https://www.nytimes.com/2020/08/20/us/politics/ftc-commissioners-reinstated.html [2] https://www.washingtonpost.com/politics/ftc-commissioner-slaughter-reinstated-in-court-ruling/2020/08/20/58a127e8-368c-11ea-8163-9e079c06a58c_story.html [3] https://www.politico.com/news/2020/08/20/trump-administration-loses-court-battle-over-ftc-commissioner-396616 [4] https://www.reuters.com/article/us-usa-court-ftc/judge-reinstates-ftc-commissioner-slaughter-in-court-battle-with-trump-idUSKCN2572BK [5] https://www.axios.com/trump-administration-loses-court-battle-over-ftc-commissioner-slaughter-3f3c5c6c-652e-4971-8f29-836980f9e893.html
- The legal battle over the removal of FTC commissioners Rebecca Kelly Slaughter and Alvaro Bedoya, represented by the nonprofit organization Protect Democracy, has potential implications beyond the FTC, as it could set a precedent for presidentially-appointee removals across various independent agencies, such as the Federal Reserve.
- The future of technology-related cases could be affected by the FTC's commissioners' removal, as decisions made by the remaining commissioners may allow the President to decide the outcome of investigations into tech companies like Meta and Amazon, regarding matters such as privacy rules and small business treatment.
- In light of the at-will removal of FTC commissioners Slaughter and Bedoya controversially occurring through Trump administration, the focus of general news, policy-and-legislation, politics, and tech communities remains on the ongoing court case to reinstate the commissioners, with expectations of further developments in shaping the future of America's independent agencies.
