Statement for the Record on Hearing: ‘Transforming the FTC: Legislation to Modernize Consumer Protection’
Coalition Letter, Regulatory Comment Ashley Baker Coalition Letter, Regulatory Comment Ashley Baker

Statement for the Record on Hearing: ‘Transforming the FTC: Legislation to Modernize Consumer Protection’

On July 1, 2021, the Federal Trade Commission (FTC), after allowing six days for public comment, voted to rescind the 2015 Statement of Enforcement Principles Regarding “Unfair Methods of Competition” (UMC) Under Section 5 of the FTC Act. On July 21, 2021, the FTC voted to rescind its bipartisan 1995 Policy Statement on Prior Approval and Prior Notice Provisions in merger cases.

Notably, both of these actions – along with other significant changes – were effected along party lines, with limited opportunity for public input, and without dialogue among the Commissioners. Today’s hearing will consider a wide array of reforms, many of which are relevant to the level of discretion and enforcement principles under FTC Act § 5 and to the broader capabilities and mandate of the Commission.

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Coalition Letter, Regulatory Comment Ashley Baker Coalition Letter, Regulatory Comment Ashley Baker

Comments In Re: Rescission of 1995 FTC Statement on Prior Approval and Prior Notice Provisions

It is troubling that the FTC will be considering a significant shift in policy as the open meeting agenda will include this sudden push to revoke the 1995 statement. Of particular concern is the rejection of the prior approval provision.

With the adoption of the 1995 statement, the Commission accepted the Hart-Scott-Rodino (HSR) Act framework as adequate for handling mergers and thereby determined that prior approval of future acquisitions by a respondent should no longer be required as a routine matter.

The rescission of the 1995 statement is another step in the direction of rejecting the HSR regime which, in the words of Peter W. Rodino, Jr on the 25th anniversary of the Act, “absolutely has transformed merger enforcement. Competition, as well as the consumer, has benefitted.”

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