Since taking office after the dismissal of Democratic FTC Commissioners by President Trump, new FTC Chair Andrew Ferguson has swiftly set his agenda in motion. His primary focus areas are combating consumer fraud, safeguarding American workers, and examining the content moderation practices of Big Tech companies. In the first 50 days of his tenure, Ferguson has made notable strides in addressing these issues.
Swift Action Against Fraud
Enforcement Actions
Under Ferguson’s leadership, fraud prevention has become a top priority for the FTC. Within a month of his appointment, the agency has launched three significant enforcement actions against fraudulent operations, including a phantom debt collector, a business opportunity scam, and a credit repair scam. These proactive measures have resulted in federal court orders to halt the operations of the companies involved and freeze their assets, suggesting the FTC’s determination to tackle straightforward fraud cases head-on. The success of these actions carries an important message to fraudulent entities regarding the FTC’s zero tolerance towards deceitful and illegal activities.
Furthermore, the FTC has emphasized its commitment to maintaining consumer confidence by investigating and acting against a broad spectrum of scams. These efforts reflect the agency’s dedication to ensuring that consumers are not preyed upon by deceptive business practices. With the combination of enforcement actions and asset freezes, Ferguson has sent a clear signal that the FTC is unwavering in its pursuit to shield consumers from fraud.
Consumer Guidance and Data
Aside from enforcement, the FTC’s Bureau of Consumer Protection is actively disseminating guidance to help individuals identify and avoid scams. Recent publications on the FTC blog have highlighted the specifics of the business opportunity enforcement action, enlightening the public about the nuances of such scams. Additionally, the agency has issued warnings about scams that proliferate during weather emergencies, providing useful insights on how consumers can safeguard themselves in vulnerable situations. These guidance efforts aim to empower consumers with knowledge and preventive measures.
Remarkably, the FTC reported a 25% increase in consumer losses due to fraud in 2024, underscoring the urgency of the FTC’s preventive measures. The types of fraud that have contributed to these losses include investment scams, imposter scams, and fraudulent job and business opportunities. Interestingly, scams requiring payment via bank transfers and cryptocurrency have also seen a sharp rise. This alarming data reinforces the need for robust fraud prevention strategies and underscores the importance of the FTC’s ongoing efforts to protect consumers.
Emphasis on Worker Protection
Joint Labor Task Force
A crucial aspect of Chair Ferguson’s leadership has been his dedication to protecting American workers from unfair labor practices. The establishment of a Joint Labor Task Force is a testament to this commitment. This task force is tasked with investigating and prosecuting a range of unlawful labor practices that undermine worker rights. These investigations focus on no-poach agreements, non-solicitation, and no-hire clauses, which can limit employees’ employment opportunities and mobility. Noncompete clauses and wage-fixing arrangements, which restrict workers’ ability to negotiate better pay or jobs, are also under scrutiny.
The task force also aims to address deceptive job advertising and earnings claims. Many workers, especially in today’s gig economy, fall prey to misleading job postings that promise high earnings but fail to deliver. This initiative extends further to reviewing misleading business opportunities and franchise offerings that leave workers in precarious situations. Ultimately, this comprehensive approach by the Joint Labor Task Force seeks to ensure fair treatment and honest earning opportunities for American workers, safeguarding them from exploitative practices that can wreak havoc on their professional lives.
Broader Worker Protection Goals
The Joint Labor Task Force doesn’t just focus on direct labor issues but also examines broader aspects such as collusion or unlawful coordination on Diversity, Equity, and Inclusion (DEI) employment metrics. By scrutinizing how companies might manipulate DEI metrics to create an illusion of fairness and inclusivity, the FTC aims to support genuine efforts that promote diversity and equity in the workplace. These efforts reveal the commission’s commitment to fostering a labor market environment that is not only competitive but also just and equitable.
In addition, the task force’s initiatives include evaluating practices within various industries that can lead to systemic exploitation of workers. The comprehensiveness of the task force’s approach highlights the FTC’s recognition of the complex nature of modern labor markets. It acknowledges that worker protection goes beyond addressing immediate grievances; it involves creating a regulatory framework that upholds workers’ rights and dignity. Through these initiatives, Ferguson’s FTC is taking significant strides to ensure American workers are protected from practices that weaken their job security and financial stability.
Scrutiny of Big Tech
Public Inquiry into Censorship Practices
The FTC under Chair Ferguson has also set its sights on examining Big Tech’s content moderation practices. This decision was announced on February 20, 2025, with the commission initiating a public inquiry to investigate whether technology platforms restrict or degrade user access based on speech content or affiliations inappropriately. This inquiry is designed to collect public comments on experiences with tech platform censorship, seeking to understand the extent and impact of these moderation practices.
The aim is to assess whether the content moderation systems employed by these platforms are lawful and fair. The inquiry is expected to shine light on practices such as banning, shadow banning, demonetizing, or censoring users due to their speech or affiliations. Consumers and competition may be significantly affected by these practices, and this scrutiny aligns with the FTC’s mission to protect consumer interests and ensure fair competition within the digital marketplace. By inviting public feedback, the FTC hopes to construct a comprehensive view of how Big Tech’s moderation policies influence users and the broader market.
Alignment with Consumer Protection
Ferguson’s initiative to scrutinize Big Tech aligns seamlessly with the FTC’s broader consumer protection goals. By investigating platform practices like banning, shadow banning, and demonetizing users, the FTC aims to ensure digital platforms operate fairly and competitively. These efforts underscore the agency’s determination to safeguard consumer rights and preserve free speech in the digital age. Tech companies wield substantial power over public discourse, making it imperative for regulatory bodies to ensure they exercise this power responsibly and equitably.
Additionally, within the broader context of consumer protection, scrutinizing Big Tech’s policies serves to underline the importance of transparency. Digital platforms are integral to daily life, influencing communications, businesses, and personal interactions. Ensuring these businesses adhere to fair practices is essential for consumer trust and market integrity. Through these initiatives, the FTC under Ferguson’s leadership reinforces its resolve to maintain a marketplace where consumers can rely on fairness and transparency from the tech giants that shape the digital landscape.
Rulemaking and Legal Defenses
Click to Cancel Rule
Despite his earlier criticisms of agency rulemaking under the Biden administration, Chair Ferguson’s FTC has staunchly defended the “Click to Cancel” Rule in court. This rule, which aims to simplify the process by which consumers can cancel subscriptions or memberships, illustrates the commission’s dedication to consumer rights. By defending the rule, the FTC has demonstrated its commitment to regulatory continuity and the enforcement of consumer protection measures established under previous leadership. The FTC maintains that the rule was implemented correctly, adhering to all legal and procedural requirements.
The “Click to Cancel” Rule is significant as it addresses common frustrations faced by consumers in managing subscriptions. The FTC’s thorough defense in court underscores its resolve to protect consumers from deceptive practices that complicate the cancellation process. By advocating for the rule’s legitimacy, the FTC aims to ensure that consumers can easily end subscriptions without encountering unnecessary hurdles, reinforcing consumer autonomy and preventing unwarranted charges.
Pending Legal Outcomes
Since assuming his role following the dismissal of Democratic FTC Commissioners by President Trump, Andrew Ferguson, the new FTC Chair, has promptly initiated his agenda, tackling consumer fraud, protecting American workers, and scrutinizing Big Tech’s content moderation policies. In just the first 50 days of his tenure, Ferguson has already made significant progress in addressing these important issues. His swift action demonstrates a strong commitment to these causes and indicates his dedication to making impactful changes. Through his focused efforts, he has become a prominent figure in consumer protection and worker rights advocacy. As the FTC continues to navigate the complex landscape of modern commerce and technology, Chair Ferguson’s leadership will likely play a crucial role in shaping the agency’s policies and actions. His early achievements set the tone for what might be a transformative period for the FTC, aiming to ensure fair practices and safeguard the interests of the public.
