Oversight Hearing of the U.S. Federal Trade Commission

House Subcommittee on Financial Services and General Government

2025-05-15

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Source: Congress.gov

Summary

This hearing convened to review the oversight of the U.S. Federal Trade Commission (FTC), with Chairman Andrew Ferguson testifying about the agency's mission, priorities, and efforts to restore financial health and public credibility under his leadership . Discussions covered a range of topics, including competition, consumer protection, budget constraints, regulatory philosophy, and the agency's independence.

Themes

FTC's Mission and Regulatory Philosophy

The FTC's core mission is to promote marketplace competition and protect consumers, ensuring robust competition for economic growth and lower costs . Chairman Ferguson emphasized a return to the FTC's foundational role as a "cop on the beat," focusing on enforcing laws passed by Congress, investigating wrongdoing, and pursuing litigation where appropriate, rather than extensive rulemaking . This approach aims to foster a dynamic, pro-worker economy by protecting it from anti-competitive practices, consolidation, and fraud . He also highlighted the importance of common-sense guardrails that do not stifle innovation .

Mergers, Acquisitions, and Antitrust Enforcement

Chairman Ferguson outlined a shift in the FTC's approach to mergers and acquisitions (M&A), recognizing them as critical for economic growth and innovation . The agency will intervene if deals are anticompetitive and winnable in court, otherwise, it will "get out of the way quickly" and adhere to statutory timelines . A key change is the FTC's openness to merger remedies, particularly structural ones, to address anti-competitive concerns without necessarily blocking entire mergers . He cited the injunction of a medical device manufacturer merger as the first major action under his leadership .

Budget, Staffing, and Efficiency

The FTC faces flat funding for fiscal year 2025 despite rising costs for expert witnesses, infrastructure, and technology, compounded by new demands from legislation like the Take It Down Act . Chairman Ferguson stated that previous administration's hiring practices had left the agency "bloated" and unsustainable . He outlined efforts to restore fiscal health through measures like reviewing contracts, reducing spending by over $6 million, bringing data infrastructure internally, and implementing budgeting requirements for expert witnesses in litigation . The agency aims to reduce its workforce to around 1,100 FTEs through attrition to align with current appropriation levels .

Regulatory Impact and Deregulation

A significant focus is on reducing regulatory burdens that can stifle competition, especially for small and medium-sized businesses . Chairman Ferguson highlighted President Trump's executive order to identify and eliminate anti-competitive regulations, inviting public and other agency input through a Request for Information (RFI) process . He emphasized that regulation, even if well-intentioned, can have unintended negative consequences, particularly for smaller market participants, and that the FTC's role is to ensure markets work fairly without picking winners or losers through overregulation .

Agency Independence and Political Influence

The independence of the FTC, particularly concerning presidential authority to remove commissioners, was a contentious point . Chairman Ferguson asserts that, based on Supreme Court precedent, the President has the constitutional authority to remove FTC commissioners "at will" due to the agency's substantial executive power, ensuring democratic accountability [ 01:26:01-01:27:16 ]

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. Concerns were also raised about potential political influence and access to sensitive data by individuals detailed from other government services, but Chairman Ferguson assured strict protocols are in place to prevent unauthorized access .

Specific Consumer Protection Issues

  • Members expressed bipartisan concern about PBM practices driving up prescription drug costs and harming independent pharmacies [ 00:52:37 ]

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    . Chairman Ferguson highlighted ongoing 6B studies and law enforcement actions aimed at ensuring fair competition and transparency in the healthcare market .
  • There was support for consumers' "right to repair" their products, with examples ranging from auto parts to appliances . Chairman Ferguson indicated a willingness to enforce Section 5 against deceptive practices that prevent repair, citing ongoing cases such as against John Deere .
  • The increasing sophistication of scams using AI, particularly voice cloning for impersonation, was identified as a growing threat . The FTC is combating this through enforcement of impersonation rules, fostering technology for detection, and a multi-agency approach to protect vulnerable populations .
  • The recent bipartisan legislation requiring online platforms to remove non-consensual intimate images will necessitate additional resources for the FTC, including segregated IT systems and specialist investigators and lawyers to handle the sensitive material .
  • The enforcement of this act to protect independent grocers from discriminatory pricing was discussed [ 01:17:07-01:17:18 ]

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    . Chairman Ferguson confirmed ongoing litigation and expressed openness to enforcing the act, provided it does not lead to increased consumer costs .

Tone of the Meeting

The meeting maintained a largely professional and respectful tone, although underlying partisan divisions were evident, particularly regarding the FTC's independence and the role of political appointments . Republican members generally expressed strong support for Chairman Ferguson's efforts to streamline the agency, reduce regulatory burdens, and refocus on law enforcement . Conversely, Democratic members voiced concerns about the politicization of the FTC, the impact of staff reductions on its effectiveness, and potential threats to its independence . There was bipartisan consensus on the importance of addressing specific consumer protection issues like PBMs, AI fraud, and the "right to repair" . Chairman Ferguson consistently articulated a vision for an efficient, law-enforcing FTC focused on a pro-growth and pro-worker agenda .

Participants

Transcript

and Financial Service and General Government will come to order.  This hearing is titled Oversight of the U.S.  Federal Trade Commission.  Members will have five legislative days with which to revise and extend their remarks and insert extraneous material into the record.  I now recognize myself for an opening statement.  I'd like to thank Chairman Ferguson for being here today and his leadership over the last several months.  The Federal Trade Commission plays an important role in promoting marketplace competition and protecting consumers.   ensuring robust competition is vital to fostering economic growth while also lowering costs for all Americans.  Over the last several years under previous leadership, the FTC routinely strayed from its core mission and stretched the limits of its statutory authorities.  I'm encouraged by the Commission's renewed focus and direction under your leadership.   Advances in technology and the emergence of artificial intelligence have presented new opportunities and challenges for businesses and consumers alike.  American innovators are at the forefront of these major technological advances.  While regulators have a responsibility to maintain common sense guardrails, they should do so in a way that does not stifle innovation and force good paying jobs overseas.  The FTC's spending level for fiscal year 2025 was held flat from FY 2024 at $425.7 million.   Despite that flat funding, for the last two fiscal years, the commission faces rising costs for expert witnesses, infrastructure, and technology.  Furthermore, the recent passage of the Take It Down Act require the FTC to deploy additional resources to crack down on the publication of non-consensual intimate images, including those generated by AI.   I look forward to hearing more about the Commission's implementation of this important piece of legislation and the additional resources that will be required.  Chairman Ferguson, you have described the Federal Trade Commission's role as a cop on the beat.  Like police officers, the Commission has a responsibility to enforce the law fairly, without bias or prejudice.   THE AMERICAN PEOPLE DESERVE AN FTC THAT STICKS TO ITS CORE MISSION OF PROMOTING COMPETITION AND PREVENTING FRAUD IN THE MARKETPLACE.  PROVIDING REGULATORY CERTAINTY AND PREDICTABILITY TO THE PRIVATE SECTOR WILL SPUR AN ECONOMIC GROWTH AND BENEFIT ALL AMERICANS THROUGH AFFORDABLE PRICES.
I LOOK FORWARD TO HEARING FROM CHAIRMAN FERGUSON ABOUT HIS VISION FOR THE COMMISSION AND THE RESOURCES THAT WILL BE REQUIRED TO EXECUTE ON THE FEDERAL TRADE COMMISSION'S MISSION.  I NOW RECOGNIZE THE RANKING MEMBER, MR. HOYER, FOR HIS OPENING STATEMENT.  THANK YOU, CHAIRMAN.   Very much.  Welcome, Chairman Ferguson, to the committee.  I want to thank you for the work that you have done and you are doing.
You had a very extensive statement, footnoted more than any other statement I think I've read for an opening statement.  I thought I was reading a law brief.  But having said that, it was very comprehensive.
But one of the things I noticed in it, and I say this at the outset.  Well, I'm going to ask questions later.  I'm going to be going in and out.  It has nothing to do with your testimony.  It has to do with we have two hearings going on at the same time.  One of my top priorities, Mr. Chairman, as you know, throughout my time in Congress has been making our workers.   our businesses, and our entire economy more competitive.  That's why I, as majority leader, started the agenda that I call Make It in America, which obviously is a double entendre.  People came to America to make it, to succeed.  But also, the way we're going to succeed better is to make it, whatever it may be, in America.   We're moving towards that effort.  But as you point out in your statement, it can be a self-defeating effort the larger one enterprise gets and other enterprises are left by the wayside.  Many of the historic bills we passed in the 117th Congress, including the CHIPS and Science Act, the Bipartisan Infrastructure Law, and the Inflation Reduction Act, were designed to promote competition and to grow manufacturing and our science research in America.   That's the objective we ought to all share.  If you support innovation, if you support growth, if you support development, then you have to support competition.  I tell my Democrats, if you want to be pro-worker, you need to be pro-employer.  Both need to be in equilibrium.  Both have a role to play.  And both need a referee.  You talked about cop on the beat, referee.

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