Federal Appeals Court Rules Against Trump’s FTC Dismissal

A federal appeals court ruled on Tuesday that President Donald Trump cannot terminate a member of the Federal Trade Commission (FTC).

The decision, which came from a 2-1 panel, maintains that the previous ruling by U.S. District Court Judge Lauren Alican—appointed by Biden—was upheld. This ruling allows FTC Commissioner Rebecca Massacre, a Democrat, to retain her position after Trump dismissed her along with other Democratic leaders in March.

The judges noted that the government likely won’t gain the upper hand in appealing, referencing a Supreme Court precedent that affects similar cases, particularly those involving appointments to “independent” agencies like the FTC. This precedent traces back to a 90-year-old Supreme Court case—Humphrey’s Executor vs. United States—which has been a point of contention for the Trump administration in its attempts to remove various federal officials.

Earlier this year, the Supreme Court had compelled Trump to proceed with appointments from other federal commissions, including the Merit Systems Protection Commission and the National Labor Relations Commission.

Adding to the discussion, Trump’s nominee, Judge Neomi Rao, expressed dissent and implied that her colleagues had overlooked a recent Supreme Court emergency ruling. She argued that elements of the judgment could intrude on presidential enforcement powers.

In a related decision concerning the Consumer Product Safety Commission in July, the Supreme Court majority emphasized that its ruling should not be seen as final in terms of legal merit.

Judge Brett Kavanaugh suggested the need to revisit the Humphrey’s Executor precedent to clear up any potential confusion surrounding these matters. He mentioned that allowing a stay before judgment could be wise, considering the uncertainties involved.

As of now, the White House has not provided any immediate commentary on the ruling.