Stephen Calkins on the FTC going forward

Stephen Calkins of Wayne State, who formerly served as FTC General Counsel, has pointed out that when the FTC has only two commissioners, two is a quorum for FTC action under the regs:

 

  • 4.14 Conduct of business.

 

(a) Matters before the Commission for consideration may be resolved either at a meeting under § 4.15 or by written circulation. Any Commissioner may direct that a matter presented for consideration be placed on the agenda of a Commission meeting.

 

(b) A majority of the members of the Commission in office and not recused from participating in a matter (by virtue of 18 U.S.C. 208 or otherwise) constitutes a quorum for the transaction of business in that matter.

 

(c) Any Commission action, either at a meeting or by written circulation, may be taken only with the affirmative concurrence of a majority of the participating Commissioners, except where a greater majority is required by statute or rule or where the action is taken pursuant to a valid delegation of authority. No Commissioner may delegate the authority to determine his or her vote in any matter requiring Commission action, but authority to report a Commissioner’s vote on a particular matter resolved either by written circulation, or at a meeting held in the Commissioner’s absence, may be vested in a member of the Commissioner’s staff.

[42 FR 13540, Mar. 11, 1977, as amended at 50 FR 53306, Dec. 31, 1985; 70 FR 53297, Sept. 8, 2005]

 

Professor Calkins adds, “Chairman Ferguson has publicly said that he is (or was) prevented from acting by the 2-2 split, but as soon as he had a majority they would revisit every filed lawsuit and evaluate whether it should be withdrawn. So what happens if a lawsuit is dropped, 2-0? As for actions taken, I assume that every defendant will claim the complaint was voted out illegally, 2-0. The firings were in direct violation of the statute, deliberately teeing up a Supreme Court case, but a lot of chaos lies between now and then.” Professor Calkins also notes he doesn’t know whether such claims will succeed.

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