Two House GOP committee chairs have accused Federal Trade Commission Chairperson Lina Khan of overstepping the limit of her powers and wasting taxpayer dollars in the process.
Judiciary Committee Chairman Jim Jordan (R-Ohio) and House Committee on Energy and Commerce Chairwoman Cathy McMorris Rodgers (R-Wash.) sent a letter to Khan Thursday saying they were investigating a recent lawsuit by the FTC accusing Arizona-based Coulter Motor Company of discriminating against Latino patrons.
On average, Latino customers paid roughly $1,200 more in interest and other fees relative to their non-Latino white peers, the FTC alleged. The agency partnered with the state of Arizona on the case and the two sides came to a proposed $2.6 million settlement in August.
“Both Commissioners [Andrew] Ferguson and [Melissa] Holyoak raised concerns not only because the FTC Act does not contemplate such claims, but the FTC making up such a claim and including it as part of a settlement agreement can set a dangerous precedent,” Jordan and Rodgers noted.
Back in late June, the US Supreme Court upended the so-called Chevron doctrine, which claimed judges should defer to executive agencies when questions arose about the scope of federal power.
The high court concluded that the judiciary would have to weigh in on areas of legal ambiguity instead, setting the stage for a potentially significant curtailing of the administrative state.
As a result of the high court’s June ruling, the FTC will have to “convince a court that Congress authorized the Commission to use the FTC Act for civil rights enforcement,” the GOP reps explained.
The Federal Trade Commission Act of 1914 authorizes the commission to raise antitrust issues, while the Equal Credit Opportunity Act of 1974 empowers the pursuit of creditors who discriminate against applicants.
“Congress gave the FTC the power to enforce the ECOA, but that authority to challenge conduct under the ECOA does not accordingly permit the FTC to separately challenge conduct as “unfair discrimination” pursuant to the FTC Act,” the two GOP reps stressed.
“Holyoak explained that your attempt to expand the FTC’s ‘unfairness consumer protection into a comprehensive civil rights authority’ creates ‘a new standard of liability that may have unintended and pernicious consequences,’” the pair added.
The FTC did not immediately respond to a request for comment.
Khan has emerged as a breakout star among progressives who have extolled her hardline approach against large conglomerates and Big Tech.
Even some Republicans, such as Sen. Josh Hawley (R-Mo.) and GOP vice presidential hopeful Sen. JD Vance (R-Ohio), have praised her in the past.
Still, critics in the business community have contended that the 35-year-old’s antics could hamper innovation, particularly in the budding artificial intelligence sector.
Recently, billionaire Mark Cuban publicly stated that he would like Vice President Kamala Harris to let go of Khan if she wins the Nov. 5 election.
A handful of deep-pocked Harris backers on Wall Street have privately urged the Democratic campaign to get rid of Khan as well, prompting jitters within progressive circles.
“Let me make this clear, since billionaires have been trying to play footsie with the ticket: Anyone goes near Lina Khan and there will be an out and out brawl,” Rep. Alexandria Ocasio-Cortez (D-NY) vowed on X.
“And that is a promise. She proves this admin fights for working people. It would be terrible leadership to remove her.”
Harris has not publicly commented about whether or not she intends to retain Khan.
Meanwhile, the FTC chair has been taking part in a number of events with prominent liberal politicians such as Sen. Bernie Sanders (I-Vt.) over recent weeks, amid the fast-approaching Nov. 5 election.
