On March 18, President Donald Trump dismissed the two Democratic commissioners from the Federal Trade Commission (FTC). The removal of Commissioners Alvaro Bedoya and Rebecca Kelly Slaughter has sparked significant controversy and legal challenges.

Both Bedoya and Slaughter have publicly condemned their dismissals as illegal and vowed to sue to block the President’s order. Bedoya took to social media to express his outrage, stating, “The President just illegally fired me. The FTC is an independent agency founded 111 years ago to fight fraudsters and monopolists … Now, the President wants the FTC to be a lapdog for his golfing buddies.” He emphasized his commitment to fighting for small businesses and vulnerable communities, urging the public to “[f]ight back.”

Slaughter echoed similar sentiments in her statement, highlighting the importance of the FTC’s independence. “[T]oday the President illegally fired me from my position as a Federal Trade Commissioner, violating the plain language of a statute and clear Supreme Court precedent,” she wrote. Slaughter underscored her dedication to enforcing the law without fear or favor and warned that removing opposing voices from the FTC could undermine its accountability and effectiveness.

The White House confirmed the dismissals, and FTC Chairman Andrew Ferguson defended the move, asserting the President’s constitutional authority to remove FTC Commissioners. In an official statement, Ferguson said, “President Donald J. Trump is the head of the executive branch and is vested with all of the executive power in our government. I have no doubts about his constitutional authority to remove Commissioners, which is necessary to ensure democratic accountability for our government. The Federal Trade Commission will continue its tireless work to protect consumers, lower prices, and police anticompetitive behavior.”

Critics, however, argue that the firings are a strategic attempt to install commissioners loyal to President Trump’s economic and social policies, potentially compromising the FTC’s role in enforcing consumer protection and antitrust laws. While the FTC Act mandates that no more than three commissioners belong to the same political party, it does not require that the other two commissioners be from the other major political party, nor does it impose a timeline for nominations. Consequently, President Trump may not prioritize this process or may appoint Democrats or members of another party, who align more closely with his views.

Our Take

The dismissal of Commissioners Bedoya and Slaughter raise critical questions about the Commission’s future and composition under the second Trump Administration. The FTC can and has functioned with only two commissioners, as seen during prior transitions between presidential administrations. For example, during the Biden Administration, the FTC operated with only three Democratic commissioners for nearly a year after Republican Commissioners Noah Joshua Phillips and Christine Wilson left and before new Republican Commissioners Andrew Ferguson and Melissa Holyoak were confirmed by the Senate. And in 2018, Acting FTC Chair Maureen Ohlhausen was the sole commissioner to vote on a matter after Commissioner Terrell McSweeny recused herself.

In the short term, however, the two-commissioner FTC could present challenges for pending cases. The two Republicans would need to agree on any proposed action because FTC rules prevent the commission from acting in the event of a tie vote. Additionally, in September 2024, the FTC sued three prescription drug benefit managers for artificially inflating insulin prices. Both Chairman Ferguson and Commissioner Holyoak are recused, so it is unclear how the FTC will proceed in that case, which is currently before an administrative law judge.

All this may be moot once Mark Meador is confirmed and becomes the third Republican FTC Commissioner. On Monday, March 24, Senate Majority Leader John Thune (R-SD) can file cloture on Meador’s nomination, and the Senate could hold a confirmation vote as early as March 26.

Former Commissioners Slaughter and Bedoya already have signaled their intent to challenge their terminations. These legal challenges may result in court orders reinstating them. However, the lawfulness of terminating commissioners from an independent agency remains an open question and is likely to be decided ultimately by the Supreme Court. This is a highly dynamic situation, and we will continue to post updates as it develops.