U.S. Chamber of Commerce petitions FTC for changes in recusal process

The U.S. Chamber of Commerce has submitted a petition to the Federal Trade Commission (FTC) requesting changes to the recusal process in order to promote transparency and public trust. The Chamber emphasized the important role played by the FTC in enforcing antitrust and consumer protection laws and expressed concerns about potential conflicts of interest. The petition specifically referenced FTC Chair Lina Khan's alleged failure to recuse herself in the Meta case, despite advice from ethics officials. As a result, the Chamber called for a formalized recusal process that includes consultation with ethics experts, written statements explaining reasons for refusing recusal requests, and a clear timeline and legal framework for disqualification proceedings.

The proposed changes outlined in the petition aim to enhance the integrity and clarity of agency adjudications. The Chamber argues that commissioners should not only consider financial conflicts but also broader prejudgment issues that could impact their impartiality. The petition emphasizes the importance of seeking written guidance from agency ethics officials and providing a reasoned written statement when choosing not to follow their advice. The goal is to establish a more transparent process where the rationale behind any refusal to recuse is publicly accessible.

The petition, signed by Neil L. Bradley, the Executive Vice President and Chief Policy Officer of the U.S. Chamber of Commerce, urges the FTC to promptly revise the recusal process to improve both its actual and perceived integrity. The Chamber's call for changes reflects the need for a transparent and accountable system that maintains public trust in the FTC's enforcement of antitrust and consumer protection laws.

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Sean Heather, the Senior Vice President of the U.S. Chamber of Commerce, emphasized the significant role the FTC plays in the American economy through its enforcement of antitrust and consumer protection laws. He noted the unique power the FTC holds, having the authority to both prosecute and adjudicate cases against companies. Heather underscored the importance of a transparent process to maintain public trust, articulating concerns arising from FTC Chair Lina Khan's alleged failure to heed ethics officials' advice to recuse herself in the Meta case.

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Heather stated, "Unfortunately, Chair Lina Khan's failure to be open, forthcoming, and accountable for her decision to ignore FTC ethics officials' advice to recuse herself in the Meta case gives rise to the need for the petition we filed today, and it's why the FTC must now adopt a rule to formalize its recusal process."

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Outlined in the detailed letter addressed to Ms. Tabor, the proposed amendments champion a formalized consultation process with ethics experts from the FTC’s Office of General Counsel. It also calls for enhanced clarity and integrity in agency adjudications by requiring commissioners to deliver a written statement elucidating the reasons for refusing any recusal requests. The suggested rule further stipulates that this statement should be incorporated into the final order that addresses any recusal petition.

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Pushing for a substantial overhaul of the FTC's current recusal procedure, the petition delineates specific timelines and legal frameworks that should govern disqualification proceedings. It highlights the necessity for commissioners to not only address financial conflicts but to earnestly consider broader prejudgment issues that might affect their impartiality. The proposed rule underlines the importance of commissioners seeking and receiving the written guidance of agency ethics officials, and presenting a reasoned written statement when they opt not to follow such advice, advocating for a move towards a more transparent process where the rationale behind any refusal to recuse is publicly accessible.

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Signed by Neil L. Bradley, the Executive Vice President, Chief Policy Officer, and Head of Strategic Advocacy at the U.S. Chamber of Commerce, the letter urges a prompt revision of the process to improve both the actual and perceived integrity of agency adjudications.

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