FTC Shift Under Biden Administration Begins With Chairman Simons, Senior Staff Resigning
While expected following start of Biden administration, Simon’s resignation is “somewhat of a surprise” considering it will change the balance of power to the Democrats ahead of when his term would have been ended, says advertising law attorney Ivan Wasserman.
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White House, Democrat majority in Congress and likely next FTC chair support the agency wielding the authority, says advertising law attorney Holly Melton. Supreme Court, though, likely will rule in pending cases that a strict reading of an FTC regulation doesn’t grant monetary penalty authority.
Commissioner Christine Wilson used her keynote address during NAD's annual conference to warn other FTC commissioners against approving a proposal to expand the agency’s authority over product labels beyond its authorities under the FTC Act.
Companies should seek legal counsel when making “Made in the USA” claims, particularly if the Federal Trade Commission’s proposed rule on the subject is adopted as drafted. Published in July, the proposed rule would enable the FTC to obtain civil penalties from violating firms “more quickly and easily," attorneys say.