The Federal Trade Commission (FTC) has moved to dismiss its appeals in two legal cases, Ryan, LLC v. FTC and Properties of the Villages v. FTC, regarding the Non-Compete Clause Rule. The agency has agreed to vacate the rule following a district court decision that found the FTC lacked statutory authority to enforce it.
When the rule was issued by the Biden-era FTC, Chairman Andrew N. Ferguson and Commissioner Melissa Holyoak dissented, citing concerns over whether the commission had legal authority to create such a regulation. Their position was later supported by a district court ruling prohibiting enforcement of the rule.
The decision to dismiss the appeal and accept vacatur was made by a 3-1 vote among commissioners. Chairman Ferguson released a statement joined by Commissioner Holyoak, while Commissioner Mark R. Meador issued a concurring statement. Commissioner Rebecca Slaughter dissented.
The FTC continues its mission to promote competition and protect consumers through education and enforcement actions. The agency reminds consumers that it will never demand money, make threats, ask for money transfers, or promise prizes as part of its communications. More information about consumer protection topics is available on their website at https://ReportFraud.ftc.gov/, where individuals can also report scams and fraudulent practices online.
For ongoing updates from the agency, consumers are encouraged to follow FTC social media channels and subscribe to press releases.
