Mark Jamison
Today’s Federal Trade Commission (FTC) doesn’t seem to have much faith in America’s democratic systems.
Created over 100 years ago, the agency is set up as a bipartisan commission with a professional staff and requirements for transparent rulemaking procedures, all intended to limit how political ideologies and day-to-day political pressures affect the FTC’s regulation of business. Scholarly studies have shown multiple times that such limitations—which are known as “best practices” worldwide—are important for economies to thrive and benefit consumers. Why? Because consumers and businesses invest more in their economic futures if they have faith that regulators will hear their voices and make decisions according to law, known facts, and proven, enduring principles.
Unfortunately, the FTC seems to have lost faith in these institutional practices. In July 2021, the FTC “updated” its rulemaking procedures in ways that limit stakeholders’ abilities to participate in FTC proceedings. Making things worse, FTC Chair Lina Khan’s method for creating this update gave Republican commissioners only a one-week notice of the impending change. In the words of Republican Commissioner Christine S. Wilson, “The format the Chair has chosen for this meeting omits our knowledgeable staff and precludes a dialogue among the Commissioners.”
According to AEI scholars J. Howard Beales III and Timothy J. Muris (a former FTC chair), “The new rules will produce greater political control of rulemaking and less public input, violating both the agency’s statutory authority and sound public policy.” Their recent AEI report details the limits that Congress placed on the FTC, how past FTC rulemakings have gone awry when the commission followed a path similar to that which the current FTC leadership is taking, how Americans suffer when proper regulatory procedures are ignored, and how the FTC should conduct itself.
The ideas in this well-researched and well-reasoned report will be discussed at an AEI event this afternoon with the same title, “Back to the Future: How Not to Write a Regulation.” The event will feature Dr. Beales, Mr. Muris, and former FTC Commissioner Maureen K. Ohlhausen, now a partner at Baker Botts. I will have the pleasure of moderating the discussion.
Courtesy: (AEI.org)
