Texas Border Business
US CHAMBER OF COMMERCE
By attempting to ban non-compete clauses in employment contracts, the Federal Trade Commission is attempting to create for itself the ability to regulate competition.
Why it matters: If allowed to stand the FTC would use its expanded authority to target companies and business practices that do not conform to its progressive policy agenda.
Details: As Sean Heather, Chamber Senior Vice President, International Regulatory Affairs and Antitrust, explains, the FTC could go after many common business practices:
· Exclusive contracts: Exclusive provider or dealer contracts foster efficiency and enhance competition and have been found to be beneficial to consumers.
· Loyalty rebates: Companies use these to encourage repeat business.
· Discount pricing: Companies charge different prices to different customers based on factors such as buying early or buying in bulk.
Big picture: The FTC “would effectively rewrite decades of antitrust jurisprudence and learning,” Heather explains. “Under the FTC’s rulemaking approach, the agency could issue blanket bans without evaluating the impact on consumers or competition.”
Bottom line: The FTC is attempting to unilaterally assume the power to regulate the entirety of the economy without Congressional authorization. This is why the Chamber is opposing the FTC’s efforts using all the tools at our disposal, including litigation.
