Federal Court to Hear Case on Trump’s Firing of FTC Democrats

Alvaro Bedoya and Rebecca Kelly Slaughter are seeking a ruling from a Washington, D.C. judge that would declare their removals unlawful and restore them to their positions at the federal agency. The lawsuit delves into constitutional questions surrounding the independence of regulatory bodies and is part of a broader legal debate on executive power, per Reuters.

The central issue is whether the president can remove commissioners from independent federal agencies like the FTC without cause. Bedoya and Slaughter argue their March 18 terminations violated existing law, which restricts the president’s ability to dismiss FTC commissioners except for misconduct or dereliction of duty. This legal safeguard stems from the 1935 Supreme Court decision in Humphrey’s Executor v. United States, which ruled that Congress may shield certain officials from at-will removal in order to preserve agency independence.

Read more: FTC Chairman Highlights Fiscal Responsibility and Consumer Protection in House Testimony

According to Reuters, Bedoya and Slaughter contend that their firings directly contravened this nearly century-old precedent. They assert that maintaining the autonomy of the FTC — which oversees consumer protection and antitrust enforcement — is essential to preserving the separation of powers enshrined in the U.S. Constitution.

The Trump administration, however, has challenged the continuing relevance of Humphrey’s Executor, arguing that the FTC has evolved significantly since the ruling and now performs executive functions, such as initiating lawsuits in federal court and seeking financial penalties. Therefore, it should be treated as an extension of the executive branch, not as an independent entity, the administration maintains.

Nonetheless, Bedoya and Slaughter counter that multiple federal courts have already reviewed and dismissed this line of reasoning, reaffirming the Supreme Court’s original position, per Reuters.

At present, the FTC is comprised of three Republican commissioners, adhering to the statutory requirement that no more than three members belong to the same political party. The outcome of the lawsuit could have ripple effects not only for the FTC but also for other independent regulatory bodies, such as those overseeing financial markets, road safety, telecommunications, and central banking.

Source: Reuters