Trump-Appointed FTC Chair Launches Task Force on Labor Market Competition

The Federal Trade Commission (FTC) is forming a task force to examine corporate practices that may suppress wages and violate antitrust and consumer protection laws. According to Bloomberg, FTC Chairman Andrew Ferguson announced the initiative on Monday during an event hosted by the Washington Reporter and the Coalition for App Fairness on Capitol Hill.

Ferguson emphasized the importance of protecting fair competition in labor markets, stating, “One of the ways we combat inflation is making sure that wages stay up.” He added that the FTC will focus on ensuring that unfair competition, deception, or other unlawful practices do not negatively impact American workers’ earnings.

Per a Bloomberg report, the newly established “labor markets task force” will bring together the FTC’s various bureaus to scrutinize business conduct that may hinder competition. Ferguson cited noncompete agreements, as well as no-hire and no-poach contracts, as key areas of concern.

The announcement marks one of Ferguson’s first public statements since his appointment as FTC Chairman by President Donald Trump following the latter’s inauguration on January 20. His comments indicate a level of continuity with the Biden administration’s antitrust efforts, which sought to challenge anticompetitive behavior in labor markets. In April 2023, the FTC introduced a sweeping rule to ban most noncompete agreements, though its implementation was stalled by legal challenges.

Related: FTC Chair Andrew Ferguson Backs Trump’s Authority to Remove Commissioners

According to Bloomberg, Ferguson—who previously opposed the FTC’s noncompete rule—expressed reservations about the agency’s constitutional authority to impose such broad restrictions. However, he affirmed that the commission under his leadership would actively monitor and take action against noncompetes that violate antitrust laws.

“For Republicans of yore, this is a strange thing to hear, but this is the working person’s party now,” Ferguson remarked. He underscored that the FTC will take seriously its responsibility to protect competition in labor markets and uphold consumer protection laws in ways that benefit American workers.

The task force’s creation follows Ferguson’s recent declaration that the FTC will uphold stringent merger review guidelines introduced by Biden-era antitrust regulators in 2023. This stance, which surprised some corporate leaders expecting a more lenient approach, signals Ferguson’s commitment to robust enforcement.

Reiterating his approach to antitrust enforcement, Ferguson stated, “If a merger violates antitrust law, you’re gonna see us in court, and if we think it doesn’t, we’re going to get out of the way.”

Source: Bloomberg