FTC Asking House Commerce for More Resources, Authority

The FTC lacks authority and resources to properly enforce against consumer protection and competition violations, the commission tells the House Commerce Committee in testimony prepared for Wednesday’s House Consumer Protection Subcommittee hearing (see 2107210061). In a joint statement, the commission highlighted its weakened authority to obtain monetary relief, resulting from the Supreme Court’s decision in AMG Capital Management v. FTC (see 2106210054). The commission is “facing extremely severe resource constraints,” commissioners wrote, citing a heavy surge in global “mergers and acquisitions.” The pandemic also is causing more complaints about marketplace abuse, the commission said. It cited bipartisan support for some of the legislative proposals the committee is considering at the hearing. It cites the agency’s call for Congress to repeal the telecom common carrier exemption, which it said impedes enforcement against activity like illegal telemarketing. The commission notes broad support for enforcement against nonprofits and for rulemaking and civil penalty authorities, “although some Commissioners would support such measures in more limited ways.” Senate Antitrust Subcommittee ranking member Mike Lee, R-Utah, wrote Tuesday against several recent measures from FTC Chair Lina Khan. He raised concerns about the “diminished role” of minority commissioners and allowing public input only after commissioners voted on agenda items at recent public meetings. He criticized the FTC’s “refusal to grant early terminations of the waiting period for mergers that pose no threat to competition under the Hart-Scott-Rodino (HSR) Act.” Restoring FTC’s authority to “force lawbreakers to return money to scammed consumers and disgorge ill-gotten gains" should be a key priority, says ex-FTC official David Vladeck, now a Georgetown law professor, in prepared remarks. He seeks adequate funding, saying the FTC has “barely” two-thirds of the personnel it had in the early 1980s.