OPINION:
Federal Trade Commission Chairwoman Lina Khan is the tip of the spear of the Biden administration’s mission to expand government control over the economy.
The traditionally bipartisan FTC is operating without any Republican commissioners, leaving Ms. Khan to ram through her progressive agenda without opposition. Republican lawmakers have led the way in keeping her accountable and should continue to work toward reining in the runaway agency.
Since Ms. Khan’s bait-and-switch confirmation nearly two years ago, the 34-year-old academic has wasted no time expanding the FTC’s power over the economy. Ms. Khan ripped up guidance for companies looking to merge with or acquire another company and sent companies letters threatening them to “proceed at your own risk” with consummating deals. Ms. Khan has rescinded or altered policy statements designed to limit the agency’s power. Ms. Khan has launched expansive rulemaking on data privacy, noncompete agreements, and other areas that would affect the entire economy without congressional approval.
We do not have to guess what Ms. Khan’s endgame is. She has called for a “paradigm shift” that would allow antitrust law to direct specific outcomes via government and legal “intervention.” Ms. Khan’s deputy, Commissioner Rebecca Slaughter, has mused about bringing a “diversity, inclusion, and anti-racist” lens to antitrust enforcement. Instead of using antitrust law to protect consumer welfare, Ms. Khan and her cohorts want to use it to advance a progressive agenda.
Ms. Khan’s aggressive agenda and abysmal leadership style have won her few friends in the FTC, which has plummeted from one of the best places to work in the federal government to one of the worst. Career staff — even those who agree with Ms. Khan’s expansive view of antitrust law — are fleeing in droves. Ms. Khan has replaced at least some of these staffers with unpaid consultants from left-wing nonprofits.
Republicans on Capitol Hill have worked to hold Ms. Khan accountable and rein the FTC in, both through congressional inquiries and legislative proposals. Ms. Khan has appeared before two House panels in the 118th Congress to justify her request for an eye-watering $590 million in new funding for fiscal 2024. In both hearings, lawmakers held Ms. Khan’s feet to the fire on issues ranging from staff morale to the FTC sending staff overseas to collude with European bureaucrats in undermining U.S. companies.
There are at least three open congressional inquiries into Khan’s politicization of the FTC. On June 1, House Oversight Committee Chairman James Comer, Kentucky Republican, opened an investigation to evaluate allegations from former Commissioner Christine Wilson of Ms. Khan’s wide-ranging abuses of power.
House Energy and Commerce Committee Chair Cathy McMorris-Rodgers, Washington Republican, has also requested documents regarding Ms. Wilson’s allegations. In April, House Judiciary Chairman Committee Jim Jordan, Ohio Republican, subpoenaed the FTC for documents regarding the agency’s “abuse of its statutory authorities in investigating Twitter,” dovetailing with his ongoing investigation of the FTC’s unpaid consultant program.
As these inquiries unfold, lawmakers can pass several bills that would reform the FTC to protect it from future activist chairs. The One Agency Act would transfer all antitrust personnel and funding from the FTC to the Department of Justice, an agency far more accountable to the voters.
Wisconsin GOP Rep. Scott Fitzgerald’s Fair and Balanced FTC Act would halt agency activity unless there is at least one commissioner from a different party than the chair. Lawmakers should also codify the consumer welfare standard, which would ensure that antitrust enforcement remains focused on protecting consumers instead of pushing policy goals by fiat.
Ms. Khan’s tenure has shown us just how far a committed activist can push an agency off the rails, especially one as powerful as the FTC.
Republicans who have stepped up to the plate to rein the FTC in should be commended for their leadership. While their work is far from over, taxpayers should rest assured that Republicans will continue leading the charge to get the FTC back on track.
• Grover Norquist is president of Americans for Tax Reform.
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