In Washington, President Donald Trump made a bold move on Tuesday by dismissing two Democratic members of the Federal Trade Commission (FTC), escalating his administration’s exertion of control over independent agencies. Alvaro Bedoya and Rebecca Kelly Slaughter, the commissioners involved, stated that their removal was illegal, and they intend to challenge Trump’s order through legal channels. The future of their access to FTC resources remains uncertain, though they assert their continued roles within the agency.
By removing Bedoya and Slaughter, Trump may be creating opportunities to appoint new commissioners aligned with his policies and priorities, thereby consolidating influence within the FTC. The White House confirmed the firings, with FTC Chair Andrew Ferguson, appointed by Trump, affirming the president’s constitutional authority to remove commissioners for democratic accountability.
The FTC, an independent regulator established by Congress, is responsible for upholding consumer protection and antitrust laws. Traditionally, its five seats consist of three members from the president’s party and two from the opposition. Commissioners are appointed by the president and confirmed by the Senate, with staggered seven-year terms to prevent simultaneous vacancies.
The dismissed commissioners referenced past Supreme Court decisions highlighting the FTC’s independence, asserting that commissioners could only be removed for just cause. Bedoya, appointed by President Joe Biden, decried the action as a clear act of corruption, accusing Trump of undermining the FTC’s foundational purpose to combat fraud and monopolies.
The White House, however, contended that Supreme Court rulings endorse the president’s unlimited power to remove executive officers appointed by him. Slaughter, who was first appointed in 2018 and later renominated by Biden, emphasized that the FTC’s independence serves the public, not corporate interests.
Slaughter expressed concerns about the potential reduction in accountability by removing opposition voices within the FTC. Historically, the Supreme Court held that a president couldn’t remove leaders of independent agencies without cause, though a 2020 decision slightly relaxed this restriction. The recent dismissals may fuel legal debates surrounding presidential powers, impacting other independent entities like the Federal Reserve.
Trump’s administration has been persistent in increasing presidential oversight over regulatory institutions, using executive orders to boost the White House’s influence on the FTC, Securities and Exchange Commission, and the Federal Communications Commission. On a call with reporters, Bedoya noted the FTC’s involvement in cases against major tech and pharmaceutical companies, warning that their removal benefits billionaires and undermines consumer protection.
Slaughter mentioned that the decision was communicated abruptly, without any clear rationale, asserting that neither she nor Bedoya intends to leave quietly, warning of potential market fallout. She emphasized concerns that dismantling protections compromises market freedom and fairness, posing risks of corruption.
Trump’s approach raises particular concerns for the Federal Reserve, an institution cherished for its independence. Economists advocate an autonomous Fed, fearing politicization would hinder its capacity to make unpopular but necessary economic decisions, such as adjusting interest rates to control inflation. Although Trump has currently retained Fed Chair Jerome Powell, past threats to dismiss him during unfavorable interest rate hikes exemplify potential conflicts.
The removals follow the Trump administration’s erasure of several online business guidance blogs published by the FTC under Biden, impacting over 350 posts. These posts ranged from addressing AI-enabled voice cloning dangers to explaining legal actions against Amazon. However, earlier posts from the Obama era remain accessible.
Nidhi Hegde from the American Economic Liberties Project condemned the dismissals as illegal, asserting that agencies like the FTC have a mandate to uphold law as defined by Congress, free from presidential whims. Joining the opposition, Sen. Amy Klobuchar criticized the dismissals as unconstitutional, voicing confidence that legal action would see the reinstatement of Bedoya and Slaughter.
