WASHINGTON, D.C. – In his opening statement during today’s Senate Commerce, Science, and Transportation Committee hearing, Chairman Ted Cruz (R-Texas) praised majors wins for consumers because of recent actions by the Federal Trade Commission (FTC). Chairman Cruz also said that while the FTC has a strong record of combating fraud and abuse, it has on occasion stretched its authority beyond Congress’s mandate, particularly with consent decrees.
The last time FTC commissioners appeared before the Committee for an oversight hearing was August 5, 2020, when Republicans controlled the Senate. Chairman Cruz noted that after years of overreach under liberal leadership, Congress has the responsibility to review FTC authorities to ensure appropriate authority, defined guardrails, and accountability to the American people.
In regard to potential consent decree reform, Chairman Cruz stated, “Reform has the potential to eliminate red tape on small businesses, lower prices for consumers, increase investment, create jobs, grow the economy, prevent censorship of American speech, and hold bureaucrats accountable.”
Chairman Cruz’s remarks, as prepared for delivery, are as follows:
“Good morning. The Senate Committee on Commerce, Science, and Transportation will come to order. I want to welcome Federal Trade Commission Chairman Andrew Ferguson and Commissioner Mark Meador. Thank you for being here today.
“Let me begin by congratulating Chairman Ferguson. In just one year, the FTC has returned more than $3.2 billion in ill-gotten gains to consumers—more than it returned during the entire Biden administration. And just this morning, the FTC is filing a settlement with major advertising firms that had effectively colluded to boycott conservative news sites. Whether advancing free speech, or preparing to enforce the landmark Take It Down Act, which holds Big Tech accountable for deepfake revenge porn, or stopping deceptive ticketing practices, it’s clear you’ve been busy. It’s a job well done, and I look forward to hearing more about the FTC’s recent successes.
“In 1914, Congress created the FTC in line with President Woodrow Wilson’s vision of an expert, independent, and impartial agency that would supposedly put politics aside.
“Congress delegated broad authority to protect consumers from unfair or deceptive acts or practices and unfair methods of competition. It intentionally did not define or articulate these terms, believing that a flexible, adaptable FTC could use its expertise to develop them through case-by-case enforcement, with courts serving as the check.
“But President Wilson’s fever dream of an omnipotent bureaucracy, precisely weighing benefits and costs free from grubby politics, has not come true.
“At times, the FTC has stretched its powers far beyond Congress’ mandate, inserting itself into nearly every sector of the economy in ways unaccountable to the public.
“Rather than rely on Article III courts—the supposed backstop—the FTC has used its administrative courts.
“Rather than prove its case in court, the FTC has too often sued to swiftly settle, imposing detailed, forward-looking obligations in consent orders that read more like legislation than case-specific remedies. Given the FTC’s broad investigative powers, businesses that dispute allegations of wrongdoing often comply rather than risk the reputational harm that can stem from a public fight.
“There have been times when the FTC has exercised such tools judiciously. There’s no doubt the FTC’s antitrust and consumer protection missions remain critical. I saw this firsthand when I headed the FTC’s Office of Policy Planning, working alongside skilled staff on complex issues in technology, competition, and consumer protection.
“But when Congress delegates broad powers to an agency, without guardrails or limits and without conducting consistent oversight, that agency will test and extend its authority.
“It’s why, during the Biden administration, FTC Chairwoman Lina Khan went well outside the agency’s legal authority to pursue a weaponized, political agenda.
“And it was hardly the first time the FTC unlawfully expanded its authority. Notably, in the 1960s and 1970s, amid a period of FTC overreach and rulemaking binges, even the Washington Post dubbed the agency the ‘National Nanny.’
“How did Congress respond then? It exercised its own authority and refused to fund a rogue agency until the agency instituted reforms.
“That history is instructive. In light of the Supreme Court’s decisions in EPA v. West Virginia and in Loper Bright, Congress has a clear responsibility to review the authorities of each agency, including the FTC, and to more carefully define and limit them.
“That’s how we keep agencies accountable to the American people.
“It’s shocking, then, that it’s been nearly six years—the entirety of the Biden administration and Democrat-controlled Senate—since FTC commissioners appeared before this committee for an oversight hearing.
“Instead of asking hard questions of the FTC, Congress has treated it like a ‘regulatory genie.’ Whenever a problem emerges—particularly one involving a new or rapidly evolving technology—we make a wish and say, “Let the FTC handle it.”
“For example, Congress has considered legislation to have the FTC regulate:
- The totality of the internet through sweeping data privacy rules;
- AI, setting up the FTC as the ‘speech police’; and
- College sports, replacing the role of universities and the NCAA.
“When Congress does give the FTC new authorities or responsibilities, it never seems to revisit the existing, broad powers the FTC has misused in the past.
“The last time Congress meaningfully acted to restore accountability at the FTC was 1996.
“Thirty years is long enough for Congress to go without seriously considering FTC reform.
“One clear area of need is consent decree reform. Time and again, the Commission has saddled companies and their workers with multi-decade orders that go far beyond correcting for any alleged misdeed. Done right, consent decree reform has the potential to eliminate red tape on small businesses, lower prices for consumers, increase investment, create jobs, grow the economy, prevent censorship of American speech, and hold bureaucrats accountable. I’m hopeful my colleagues and I might be willing to work together on this.
“I will say there are other areas where the FTC can and should do more within its core areas of expertise. This Committee has already acted by passing the Take It Down Act. And many of my colleagues on both sides of the dais have put forward thoughtful, practical bills to crack down on deceptive hidden fees, address bots in the ticketing market, and better protect Americans from fraud and scams.
“Today, I also look forward to hearing from Chairman Ferguson and Commissioner Meador on how they are working to rebuild the FTC’s morale and legitimacy. Above all, I hope to hear how the FTC will faithfully enforce only those laws that Congress enacts, rather than stretching beyond them.”
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