Two House Republican chairmen have accused Federal Trade Commission Chair Lina Khan of overstepping her authority and wasting taxpayer money in the process.
Judiciary Committee Chairman Jim Jordan (R-Ohio) and House Energy and Commerce Committee Chairwoman Cathy McMorris Rodgers (R-Wash.) sent a letter to Mr. Khan on Thursday saying that he is based in Arizona. said it is investigating a recent lawsuit by the FTC charging Coulter Motor Company with Discrimination against Latino customers.
On average, Latino customers paid about $1,200 more in interest and other fees compared to non-Latino white customers. FTC claims. The agency partnered with the state of Arizona on the case, and the two sides reached a $2.6 million settlement in August.
“Both commissioners [Andrew] with ferguson [Melissa] Holyoake argues that the FTC could fabricate such a claim and include it as part of a settlement agreement, not only because the FTC Act does not consider such claims, but also because the FTC could set a dangerous precedent by including it as part of a settlement agreement. “We raised concerns because of this,” Jordan and Rogers noted.
Back in late June, the U.S. Supreme Court overturned the so-called Chevron Doctrine, which held that judges should defer to executive branch decisions when questions arise about the scope of federal power.
The High Court concluded that the judiciary should instead consider areas of legal ambiguity, which could lead to a significant reduction of the administrative state.
As a result of the high court's June ruling, the FTC must “convince the court that Congress authorized the commission to use the FTC Act to enforce civil rights,” the Republican representative explained. .
The Federal Trade Commission Act of 1914 gives the commission authority to raise antitrust issues, and the Equal Credit Opportunity Act of 1974 allows it to go after creditors who discriminate against applicants. .
“Congress gave the FTC authority to enforce the ECOA, but the authority to challenge conduct under the ECOA therefore authorizes the FTC to challenge conduct as “unfair discrimination'' on a case-by-case basis under the FTC Act. “This is not something we should do,” the two Republican senators said.
“Mr. Holyoke argues that your company's attempt to “extend the FTC's unequal consumer protections into a comprehensive civil rights authority'' creates “new liability standards that may have unintended and harmful consequences.'' “We explained that it will be produced,'' they added.
The FTC did not respond to requests for comment.
Khan has emerged as a breakout star among progressives who admire her hard-line approach against large conglomerates and Big Tech.
Even some Republicans, such as Sen. Josh Hawley (R-Missouri) and Republican vice presidential candidate Sen. J.D. Vance (R-Ohio), I have complimented her in the past..
Still, business critics say the 35-year-old's antics could hinder innovation, particularly in the budding field of artificial intelligence.
Billionaire Mark Cuban recently said publicly that he would like to see Khan removed from office if Vice President Kamala Harris wins the Nov. 5 election.
A small group of ardent Harris supporters on Wall Street have also privately called on the Democratic Party to remove Khan, sparking unrest within progressive circles.
Rep. Alexandria Ocasio-Cortez (D-N.Y.) said: “Let's be clear about this: Billionaires are trying to play around with tickets.'' Anyone who approaches Lina Khan should be thoroughly There will be a scuffle.” I swore to X.
“And that's a promise. She's proven that this administrator is fighting for workers. It would be terrible leadership to remove her.”
Harris has not commented publicly on whether she intends to retain Khan.
Meanwhile, the FTC chairman has participated in a number of events in recent weeks with prominent liberal politicians, including Sen. Bernie Sanders (R-Vt.), as the Nov. 5 election approaches. .
