On February 26, new Federal Trade Commission (FTC) Chair Andrew Ferguson announced the creation of the Joint Labor Task Force, continuing former Chair Lina Khan's departure from what is known as the consumer welfare standard.
Congress established the FTC in 1914 to prevent unfair competition and deceptive business practices. This has primarily meant "protecting Americans in their role as consumers," according to Ferguson. The FTC enforces the Clayton Antitrust Act, which outlawed price discrimination between customers, exclusive dealing, interlocking directorates, and mergers or acquisitions that "substantially reduce competition."
But Khan was more interested in Americans' role as producers than consumers. In 2022 she signed a memorandum of understanding (MOU) with the National Labor Relations Board to "protect workers against unfair methods of competition, unfair or deceptive acts or practices, and unfair labor practices," such as restrictive contract provisions. In August 2023, Khan signed a similar MOU with the Department of Labor recognizing both agencies' shared commitment to protecting workers from deceptive earnings claims, restrictive noncompete and nondisclosure contracts, and the "impact of labor market concentration."
