By Leonard L. Gordon, Jay Prapaisilp & Ellis McKennie
With the Biden-Harris administration and Federal Trade Commission (FTC) Chair Lina Khan tenures now completed, we take a look back at the mountain of rulemaking carried out over the last few years. Khan’s ambitious agenda led to an avalanche of new and amended rules. All eyes will now be on Commissioner Andrew Ferguson, who is set to become the new chair, and how he will steer the agency going forward.
Under Khan’s leadership, the FTC issued major rules that attempted to regulate swaths of the U.S. economy. Some rules failed to become effective, as they faced judicial setbacks, such as the Non-Compete Rule, which was set aside by a federal court and the CARS Rule that the FTC stayed after litigation commenced. Similarly, the Negative Option Rule is in the midst of a court challenge that may halt its implementation. Meanwhile, the Unfair or Deceptive Fees Rule was substantially narrowed during the rulemaking process.
Determined to not leave any rule unturned and with days left before the new administration, the Commission issued two Notices of Proposed Rulemaking—one regarding the Business Opportunity Rule and the other on Earnings Claims Regarding Multi-Level Marketing. Both were issued by a 3-2 Democrat majority. The agency’s makeup is set to reverse with Khan’s departure and the nomination of Mark Meador by President Trump.
Below is our roundup of issued FTC Rules.
FTC Rule | Status |
Negative Option | Final, Litigation Ongoing |
Non-Compete | Set aside by federal court |
Combating Auto Retail Scams (CARS) | Stayed by FTC, Litigation Ongoing |
Unfair or Deceptive Fees | Final |
Children’s Online Privacy Protection | Final |
Energy Labeling | Final |
Ophthalmic Practice | Final |
Use of Consumer Reviews and Testimonials | Final |
Telemarketing Sales Rule: Recordkeeping, B2B | Final |
Telemarketing Sales Rule: Technical Support | Final |
Standards for Safeguarding Customer Financial Information | Final |
Duties of Creditors Regarding Risk-Based Pricing | Final |
Government and Business Impersonation | Final |
Power Output Claims for Amplifiers Utilized in Home Entertainment Products | Final |
Disclosure Requirements and Prohibitions Concerning Franchising | Final |
Health Breach Notification | Final |
Business Opportunity | Proposed |
Earnings Claim Rule Regarding Multi-Level Marketing | Proposed |
Funeral Industry Practices | Proposed |
Commercial Surveillance and Data Security | Proposed |
Identity Theft Detection | Proposed |
Labeling Requirements for Alternative Fuels and Alternative Fueled Vehicles | Proposed |
Care Labeling | Terminated |
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