FTC’s Consumer Protection Agenda Thus Far Under President Trump

As contemplated by FTC defense lawyer in December 2024, the Federal Trade Commission’s operations during the first two months under the second Trump Administration have been chaotic.  Unsurprisingly, the policy focus appears to be de-regulation and an enforcement focus on bread-and-butter fraud and deception (for example and without limitation, bogus business opportunity offers, unsubstantiated earnings claims and unlaw debt collection), privacy, telemarketing, big technology moderation and the protection of competition in labor markets.

Last week, President Trump fired the remaining two Democratic commissioners.  Both have stated that they believe their termination is unlawful and may challenge the dismissals judicially.  Two Republican commissioners remain to make regulatory, investigation and enforcement-related decisions.

The Federal Trade Commission has traditionally been considered an independent agency.  However, President Trump recent issued an Executive Order seeking to vest control of various federal agencies and financial regulator within his control, including the FTC.  In doing so, the Trump administration seemingly seeks to exert some degree of control over the strategic priorities of the agencies and regulators.

Historically, an FTC commissioner may only be removed by the President for “inefficiency, neglect of duty or malfeasance in office.”  In fact, in Humphrey’s Executor v. United States (1935), the Supreme Court ruled that FTC commissioners cannot be removed over policy differences.

Importantly, however, in Selia Law v. CFPB (2019), the Supreme Court held that restricting removal of the Consumer Financial Protection Bureau director to “for cause” only is unconstitutional.  Justices Thomas and Gorsuch concurred and criticized the Humphrey’s Executor decision.  It is anticipated that, if challenged, the Trump Administration will rely upon the Selia Law decision in support of its position that the removal of the FTC commissioners is constitutional.

Many have noticed a considerable shift in consumer protection investigation and enforcement-related activities.  A few new enforcement matters have been initiated in 2025 whilst one or more investigations and lawsuits have been paused.  Whether the current slowdown is temporary while the agency aligns its priorities with the new administration’s policies, or is an indication of a more significant long term shift remains to be seen.

Also noteworthy is a brief recently filed in the Eighth Circuit by the FTC defending the “Click to Cancel” Negative Option Rule.  Numerous business groups have filed challenges to the rule in federal court.  Many have speculated the “Click to Cancel” Rule would face significant challenges by the Trump administration.  The “Click to Cancel” Rule’s misrepresentation restrictions are already effective and the remainder of the rule is supposed to become effective in May 2025.

Richard B. Newman is an advertising practices attorney and eCommerce lawyer at Hinch Newman LLP. 

Informational purposes only. Not legal advice. This article is not intended to and should not be construed as legal advice. May be considered attorney advertising.