Two House GOP committee chairs, Judiciary Committee Chairman Jim Jordan (R-Ohio) and House Committee on Energy and Commerce Chairwoman Cathy McMorris Rodgers (R-Wash.), accused Federal Trade Commission (FTC) Chairperson Lina Khan of exceeding the scope of her powers and misusing taxpayer funds. They specifically called out a recent lawsuit filed by the FTC against Coulter Motor Company in Arizona, accusing them of discriminating against Latino customers. The FTC alleged that Latino customers paid on average $1,200 more in interest and fees compared to their non-Latino white counterparts. However, concerns were raised by Commissioners Andrew Ferguson and Melissa Holyoak as they believed the FTC Act did not support such claims, potentially setting a dangerous precedent.
The US Supreme Court overturned the Chevron doctrine in June, which had stated that judges should defer to executive agencies in cases of legal ambiguity. This ruling now requires the judiciary to have a more active role in interpreting federal powers, potentially limiting the authority of the administrative state. As a result, the FTC will need to show that Congress authorized them to use the FTC Act for civil rights enforcement. Jordan and Rodgers stressed that the FTC does not have the authority to challenge conduct as “unfair discrimination” under the FTC Act, and that expanding the FTC’s consumer protection role into civil rights enforcement could have unfavorable consequences.
While Khan has been hailed by progressives for her tough stance against large corporations and Big Tech, she has faced criticism from some in the business community who fear her actions could stifle innovation, particularly in the artificial intelligence sector. Billionaire Mark Cuban has publicly stated his desire for Vice President Kamala Harris to remove Khan from her position if elected. Additionally, Wall Street backers of the Harris campaign have privately urged her to dismiss Khan, causing concern among progressive groups. Rep. Alexandria Ocasio-Cortez has pledged to fight against any attempts to remove Khan, citing her as a champion for working people and emphasizing the importance of retaining her leadership.
Despite the controversy surrounding Khan, Harris has not made any public statements about her intentions regarding Khan’s continued role as FTC Chairperson. Khan, in the meantime, has been participating in events with liberal politicians like Sen. Bernie Sanders, leading up to the upcoming election. Progressive circles have expressed support for Khan, viewing her as a strong advocate for consumer protection and workers’ rights. The situation highlights the ongoing tension between progressive and conservative factions over the direction of regulatory bodies like the FTC and the role they should play in promoting economic fairness and competition. It remains to be seen how the issue will be resolved and what impact it may have on future regulatory actions.
