The recent U.S. Supreme Court decision to overturn Chevron deference has potentially extensive implications for the Federal Trade Commission (FTC). This legal principle, established decades ago, allowed federal agencies considerable latitude in interpreting statutes related to their rulemaking activities. The ruling on June 28 now raises questions about the future trajectory of the FTC’s enforcement actions and rulemaking authority.
While the ruling is anticipated to have limited impact on the FTC’s merger guidelines and administrative enforcement actions, the agency’s broader interpretation of its rulemaking powers may come under scrutiny. One critical area potentially affected by this development is the FTC’s recent stance on banning noncompete clauses. Attorneys at Baker Botts suggest that the decision could significantly constrain the agency’s regulatory activities and reshape how it approaches enforcement and compliance issues.
For more detailed analysis and updates on this evolving legal landscape, read the full article on Law360.